Aside from acting as counsel on short sales, foreclosure defense and strategic defaults, Weston real estate attorney Roy Oppenheim is bestowing a sense relief to South Florida’s underwater homeowners.

As Oppenheim Law mentioned in our Shay’s Rebellion 2.0 Workshop Recap, Sun-Sentinel real estate writer Paul Owers was on hand, working on a feature article of Oppenheim and the firm’s foreclosure defense strategies.

The article highlights Oppenheim Law’s monthly foreclosure defense workshops, explains the firm’s entry into foreclosure defense practice and describes the positive effects Oppenheim Law’s services are providing for homeowners struggling to make their monthly mortgage payments.

Check out the entire Sun-Sentinel article in Oppenheim Law’s Newsroom and be sure to leave your comments below!

After doing the math and watching property values shrink in some instances to less than half of what’s owed on a mortgage, homeowners are opting to rid their underwater property and start fresh.

According to 60 Minutes, more than 11 million homeowners across the country are underwater, and it’s estimated that number could double in the next year.

This means nearly half of all American mortgage holders will owe more on their homes than those homes are currently worth.

Oppenheim Law has presented the theory of strategic default in our monthly Florida Foreclosure Defense Workshops and also with FOX News WSVN and CBS 4 News. Check out the videos below.

“We’ve been through an event that none of us have ever experienced in this country since the Depression,” David Stevens, the commissioner of the Federal Housing Administration, told Morley Safer and 60 Minutes.

Check out the entire 60 Minutes strategic default segment below and share your thoughts in the comments section.

Watch CBS News Videos Online

Miss out on the live show? Oppenheim Law is streaming the Short Sale and Strategic Default Workshop on the South Florida Law Blog and UStream TV Channel through Sunday night.

We’re giving homeowners a second chance to hear Roy Oppenheim explain the latest trends in Florida foreclosure defense. Check out the video below for answers to many of the common questions homeowners have when facing a foreclosure, short sale, or strategic default.

Questions or feedback? Oppenheim Law would love to hear your suggestions for next month’s free Real Estate Workshop on June 2 in the comments section below, and be sure to follow Roy Oppenheim on Twitter @oplaw for all the latest real estate news.

Roy Oppenheim tells homeowners how to challenge banks at their own game and how to craft your personal bailout.

What: Short Sales + Strategic Defaults: Free Real Estate Workshop

When: Wednesday, May 5, 2010 – 6:00 to 7:00 PM

Who: Homeowners facing foreclosure, buyers, and sellers

Streaming: The Oppenheim Law UStream Channel

Where: 2500 Weston Road, Suite 404, Weston, FL 33331

Cost: Free with advanced registration

RSVP: E-mail roy@oplaw.net or call 954.384.6114

Unable to make it to Weston? Oppenheim Law broadcasts its free monthly Short Sales and Strategic Defaults Workshop online through the Oppenheim Law UStream Channel. Participants can ask questions and comment on the presentation through Oppenheim Law’s Twitter account @OPLaw.

Oppenheim Law looks forward to seeing you on May 5 whether in person or online!

Short sales have emerged as the best option for most South Florida homeowners when it comes to defending foreclosure and avoiding costly deficiency judgments, according to real estate attorney and legal blogger Roy Oppenheim.

Oppenheim joined host Barry Johnson on Real Estate Radio USA to discuss the latest trends in Florida real estate law, foreclosure and homeowner options for fashioning one’s own bailout.

We’ve uploaded the full radio interview at the end of this post, but here’s a quick summary of Oppenheim’s thoughts and advice:

• Government Failure: It has become clear the programs the Obama administration intended to help homeowners have done little more than line the pockets of banks.

• Personal Bailouts: Oppenheim Law has been positing for months that homeowners cannot sit back and wait for government programs to save their homes. Homeowners need to take it upon themselves to fashion their own economic bailout.

• Short Sale Savings: Short sales have surfaced as the best option for avoiding foreclosure, preventing deficiency judgments, and starting homeowners on the path of their own bailout.

• “Principal Reduction”: The attorneys at Oppenheim Law have seen huge “principal reduction” through short sales, with clients walking away from hundreds of thousands of dollars in debt after executing a short sale.

• Expect the Unexpected: When looking toward the future, you need to learn to expect the unexpected in the economic and real estate landscapes. These “Black Swan” events are what will ultimately change the markets.

You can hear the entire Real Estate Radio USA interview with Roy Oppenheim below. We look forward to seeing your feedback and answering questions in the comments.

Almost half of South Florida homeowners are facing negative equity in their homes, and more than 400,000 Florida foreclosure cases are expected by the end of 2010, according to real estate attorney Roy Oppenheim.

More than 40 South Florida homeowners turned out to hear the latest legal techniques and strategies Oppenheim Law is using to defend foreclosures, execute short sales, prevent deficiency judgments and keep people in their homes.

We’ve put together a summary of the main points from March’s Workshop, and look forward to seeing you at the next free event on April 1^st at 6 p.m.

• Social stigma is so yesterday. The fact that so many people are being affected by this real estate crisis completely erased the social stigma associated with foreclosure.

• Banks are overwhelmed. The depth and breadth of this crisis makes it difficult for banks to successfully foreclose homeowners who are represented by counsel.

• Do what’s right for you and get help. If it no longer makes economic sense to continue paying your mortgage, your best option is to speak to a qualified attorney.

• Don’t leave. Whatever you chose to do, stay in your home as long as possible.

• Banks warming up. Short sales are emerging as one of the best options for homeowners facing foreclosure, and believe it or not, banks are beginning to favor them as well. Some short sales are being approved in less time than in the past. One need only be 30 days behind on your mortgage to begin the short sale process.

• The bank is happy with instant cash gratification, while you avoid the hassle and stress of foreclosure proceedings.

• Price is right. When executing a short sale, an experienced real estate agent must price your home correctly, and you must protect yourself from a costly deficiency judgment through legal representation.

• Know the facts. Deficiency judgments can stay on your record for up to 20 years: Banks may garnish wages and even collect against heirs.

• Oppenheim Law has negotiated reductions in deficiency judgments by as much as 80-85%.

It is important to remember that buying yourself time in this real estate market can prove to be incredibly valuable. The tide is beginning to turn as new laws are discussed and the economy makes gains.

Again, 97% of folks facing foreclosure are not represented by counsel. Those who are have a much better chance of avoiding a deficiency judgment and saving their home.

We look forward to hearing your comments on March’s workshop and hope to see you all on April 1 for our next event.

Join Oppenheim Law at the next Free Legal Real Estate Workshop on Wednesday, March 3, as Oppenheim explains how short sales can prevent Florida deficiency judgments and provides insider tips for buying and selling Florida real estate in this turbulent market.

What: Short Sales, Deficiency Judgment + More: Free Legal Workshop

When: Wednesday, March 3, 2010 – 6:00 to 7:00 PM

Who: Homeowners facing foreclosure, real estate professionals, buyers and sellers

Where: 2500 Weston Road, Suite 404, Weston, FL 33331

Cost: Free with advanced registration

RSVP: To register email roy@oplaw.net or call 954.384.6114

For more information visit the Oppenheim Law News Room to access all of the event’s details. Please feel free to leave a comment if you have any questions or suggestions for the workshop.

Oppenheim Law looks forward to seeing you all on Wednesday, March 3^rd.

There are two caveats to this waiver that you must be aware of.  The first caveat is that the waiver is limited to forward mortgages, so it does not apply to Home Equity Conversion Mortgages.  The second caveat is when the sales price of the property is 20% or more over and above the seller’s acquisition costs, the waiver will only apply if the new buyer’s lender:

(1)     Justifies the increase in value by retaining in the loan file supporting documents and/or a second appraisal verifying that the seller has completed sufficient legitimate renovations, repair and rehabilitation work on the subject property to substantiate the increase, or the appraiser provides appropriate explanation of the increase in property value since the prior transfer of title; AND

(2)     Orders a property inspection and provides the inspection report to the purchaser before closing.

A.     The lender may charge the borrowers for this inspectio

B.     The inspector:

• Does not have to be an FHA-approved or a 203(k) consultant
• Must have no interest in the property or relationship with the seller
• Must not receive compensation from any other party other than the lender
• May not compensate anyone for the referral of the inspection
• May not receive any compensation for referring or recommending contractors to perform any repairs recommended by the inspection.

C.     At a minimum the inspection must include:

• The property structure, including the foundation, floor, ceiling, walls and roof;
• The exterior, including siding, doors, windows , appurtenant structures such as decks and balconies, walkways and driveways;
• The roofing, plumbing, electrical, heating and air conditioning systems;
• All interior; and
• All insulation and ventilation systems

So to all of you real estate investors… go ahead and buy these lemons and make a profit by selling lemonade.

“Why go through the hassle of a short sale?”

The thought process might be technically correct, but only in a state described as a “non-recourse state.” Florida is not one of those states and is in fact a RECOURSE state. This means the banks can and will likely come after you for the difference between the principal value of your Florida mortgage and the value of your home at the time of the Florida foreclosure sale.

In non-recourse states, like California, people can walk or stay, and either way the banks cannot come after you. In Florida, New York and other recourse states the banks can come after you for as long as 20 years. The banks have the right to try and garnish your wages and bank accounts and even depose you under oath. In fact they can and will likely come after you even if you are long dead. You can read my Op-Ed piece in the Sun-Sentinel for a more detailed description of the difference between recourse and non-recourse states.

However, if you get out by orchestrating a South Florida short sale, you’ll likely be released from the amount the bank does not recover at closing. In fact the reason it is called a “Short Sale” is because the bank is coming up short at closing.  Now the Bank has a few options. They can take the hit as they do frequently, and as they may well be required to do according to new rules coming out of the Obama Administration, or they can negotiate some payment plan with you. Sometimes the terms are good, and other times they are truly oppressive. However, remember whatever you negotiate is not written in stone or blood and is unsecured.

Thus, the Bank will likely sell the Note (here we go again) to a hedge fund, or collection agency for pennies on the dollar. So you once again will have an opportunity to renegotiate the terms. And even if you don’t make any payments at all, are the banks really going to spend thousands of dollars to find you, serve you and hire attorneys to sue? Maybe… but my bet is they will first go after the low hanging fruit: the poor folks who never read the Oppenheim Law blogs and now have deficiency judgments entered against them.

So, to recap, The Oppenheim Law bottom line:

Explore a short sale first before throwing in the Florida foreclosure towel.

Unlike the flippers of the past, these folks are true professionals as this IS their business. They are not cops, firemen or teachers by day and flippers by night.

In fact, OppenheimLaw and Weston Title represent a number of these types of professional groups. They are all well funded and clearly taking advantage of the fact that the Banks are drowning in too much stuff and thus many times are clueless to the true value of an asset.

Further, as we have explained before, the Banks would rather get back cold cash now than continue trying to make old loans work through loan modifications, when they know the likelihood of re-default remains high.  That is why we at OppenheimLaw and our sister title company, Weston Title, are calling 2010 the “Year of the Short Sale.”  Banks actually still do about 20% better according to a recent Federal Reserve study when they allow a short sale to proceed as opposed to the Bank proceeding all the way through the foreclosure process. Of course with millions of homes that have already been foreclosed upon by the Banks, the Banks have to somehow get rid of their unwanted inventory.

One word of caution: if you are thinking of becoming a “professional flipper” do your homework; and do not think for a moment that there is a title company out there that will allow you to use the funds from the final buyer as your source of funds to purchase the property at the courthouse’s steps or in a short sale. That practice is now dead.

Thus, if you are in a position to look at flipping as your way to help bail yourself out from being underwater to treading water with your head up high… call me!

Roy Oppenheim

From the Trenches