Some of Oppenheim Law’s most popular videos and blog posts this year were on the topic of deficiency judgements. Understanding deficiencies and the Florida rules which pertain to them are key to avoid getting a deficiency judgment.
The unpaid mortgage debt associated with a residence is a deficiency. A bank can foreclose and force a judicial sale of a home if the mortgage borrower fails to pay the associated mortgage debt. The deficiency is the difference between the proceeds from the sale and the remaining mortgage loan balance. A deficiency can also result from a short sale, which is an alternative to foreclosure.
The rules pertaining to deficiencies differ from state to state. In Florida, if the bank is successful in obtaining a deficiency judgment, it will be recorded in the public records and collectable for up to twenty years. To avoid the possibility of getting a deficiency judgment, before deciding to walk away from your home, hiring a good foreclosure defense attorney is necessary.
At first glance, it looked like Floridaforeclosurevictims were finally getting the help they need from the feds. Reading the fine print it looks like if we had to describe this in one tweet word: #fail. (more…)
Nearly 40% of homeowners who took out a second mortgage are underwater on their loans, but the news surrounding second mortgages isn’t all doom and gloom for Floridians, says Florida foreclosure defense attorney Roy Oppenheim.
Second mortgages refer to any loan taken out on a property that is subordinate to the first mortgage, and include home-equity loans or lines of credit.
According to data from CoreLogic and The New York Times, homeowners with a second mortgage are two times more likely to be underwater on their property. CoreLogic’s data also shows that homeowners with second mortgages are facing deeper levels of negative equity in their homes – $83,000 compared with $52,000 – than borrowers without second mortgages.
The bright side is that Oppenheim Law is seeing massive principal reduction on second mortgages through loan modifications, according to Oppenheim. It’s becoming common for the Florida foreclosure defense law firm to negotiate up to 80% in principal reductions of second mortgages, a far greater percentage than first mortgages.
A vast majority of first mortgages were cut up, bundled and sold to investors as mortgage backed securities, the process that played such an enormous role in the Florida real estate crisis. On the other hand, nearly three-quarters of second mortgages are still held by the banks that made the original loans.
The good news for Florida homeowners is that these banks are beginning to treat second mortgages similarly to consumer credit card debt, accepting minimal “pay offs” to settle up with homeowners.
Homeowners who are willing to negotiate a “short payoff” can have tremendous success reducing their second mortgage principal by 50% to 80% and then paying off the remaining balance in cash. Banks are even starting to solicit Florida homeowners with second mortgages to make initial offers for 40% to 50% reductions, which Oppenheim Law is then able to negotiate to as much as 80%. (more…)
As we prepare for Oppenheim Law‘s March 9th Foreclosure and Short Sale Workshop, one thing is clear: Florida real estate is not immune to world events.
The Wall Street Journal is reporting a sluggish start to selling season, typically kicked off by Super Bowl Sunday. Given the volatile international headlines this week, this news hardly comes as a surprise. From revolutionary tremors spreading throughout the Middle East to the actual tremors of Christchurch, New Zealand’s 6.3-magnitude earthquake, the global outlook seems bleak at best.
Economists are discounting the possibility that recent buying momentum will propel GDP growth to the necessary 5-plus percent necessary to sustain job growth. Latest figures are predicting unemployment to stubbornly remain above 9% nationwide until well into 2012 as well as a continued surplus in housing inventory.
Are we seeing the beginning of a double dip recession? Join Oppenheim Law and Weston Title on March 9 to discuss the latest headlines and economic predictions as we navigate month three of the year of the short sale.
As we continue to roll through 2010, dubbed “The Year of the Short Sale” by Oppenheim, it is important to remember homeowners always have rights, no matter your financial situation, and options always exist for defending yourself and your home.
April’s workshop was full of advice on executing short sales, avoiding deficiency judgments, defending foreclosure and protecting your assets and rights. We’ve put together a summary of Oppenheim’s main messages, and look forward to seeing you at the next workshop scheduled for May 5 whether in person or online!
Sluggish Mortgage Servicers – The government’s Making Home Affordable program is not going to solve this real estate and financial crisis. Banks are too slow and too reluctant to provide homeowners adequate relief.
Short Sale Savings – Short Sales have emerged as an effective way to avoid foreclosure and save homeowners’ credit, and the government’s new short sale incentives will increase this effectiveness.
Oppenheim Law has already executed four short sales for clients THIS WEEK, by the time of the workshop Wednesday night, while successfully defending costly deficiency judgments.
Cash vs. Pennies – Banks are encouraged to approve short sales and receive immediate cash relief as opposed to modifying loans and earning pennies on the dollar of their initial investments. (more…)
Find out how President Obama’s new Short Sale Program can help South Florida homeowners defend foreclosure, protect credit and prevent costly deficiency judgments.
Join Oppenheim Law for the next Free Legal Real Estate Workshop on April 7, as real estate attorney and legal blogger Roy Oppenheim explains the potential government incentives for homeowners to rid their delinquent mortgages through a short sale.
Unable to make it to Weston?Oppenheim Law will broadcast its monthly workshop online through the Oppenheim Law UStream Channel. Participants are invited to ask questions and comment on the presentation through Oppenheim Law’s Twitter account @OPLaw.
What: Short Sales, Deficiency Judgments + More: Free Real Estate Workshop
When: Wednesday, April 7, 2010 – 6:00 to 7:00 PM
Who: Homeowners facing foreclosure, buyers and sellers
Homeowners who are represented by proper legal counsel and take steps to protect their assets before, during and after the foreclosure process can leverage valuable negotiating power over the banks, according to Florida Real Estate Attorney Roy Oppenheim.
Oppenheim sat down with Asset Protection Attorney Douglass Lodmell for a second time to discuss the specific benefits legal representation can present for homeowners facing foreclosure, attempting a short sale or considering strategic default. We’ve attached the full video at the end of this post.
Oppenheim Law is continuing to defend South Florida homeowners’ deficiency judgments whether the result of foreclosure or improper liquidation and negotiation after a short sale.
“Banks are always going to go after the lowest hanging fruit,” Oppenheim said. “Legal representation and asset protection can make you an unattractive target for the banks and translate into debt settlements for pennies on the dollar.”
Check out the video below to hear Part 2 of Roy Oppenheim’s interview with Asset Protection Attorney Douglass Lodmell and feel free to leave any questions in the comments section of the blog.
Great news for real estate investors and flippers who were once restricted with the 90 day FHA anti-flipping regulations. Due to the increase in the volume of foreclosures over the past two years, the Department of Housing and Urban Development recently announced that they are waiving the 90 day flipping regulations in 24 CFR
In our last blog we talked about the stories that resonated with Roy Oppenheim in 2011, but what stories mattered to you?
Great news for real estate investors and flippers who were once restricted with the 90 day FHA anti-flipping regulations. Due to the increase in the volume of foreclosures over the past two years, the Department of Housing and Urban Development 
