It’s time to call them out once more. Not for another column, but rather, a lack of one.
In October 2010 their column“The Politics of Foreclosure” made light of the plight many of my clients have undergone, and shrunk the foreclosure crisis down to a mere inconvenience for a few Washington insiders.
And as the crisis grew wider and wider, and the expansiveness of the banks fraud became even more apparent,The Wall Street Journal’s Editorial Boardcontinued to be a haven for outdated ideas, protection of the status quo and disgust for anyone trying to do good by the American homeowner.
I found it disturbingly amusing that a settlement that was basically little more than a public spanking for the banks angered them so. The settlement didn’t land a single banking executive in jail, yet the columnists at The Wall Street Journal still treat the banks as the victims in the housing crisis.
The crisis, you know that the banks basically created.
The Wall Street Journal editorial board still believes the banks didn’t illegally foreclose on a single homeowner, something I personally know not to be true.
Either their editorial board is remarkably stupid or just ignorant.
And so I shouldn’t be all that surprised that they have been silent after the Department of Housing and Urban Developmentreleased auditsthat laid out how pervasive the culture of fraud was amongst our nation’s lenders. (more…)
Is homeownership still part of today’s American Dream? A recent article in the Wall Street Journal shared some old school advice on buying a home in today’s economy, more along the lines of Depression Era thinkers versus Baby Boomer spenders.
1. Buy what you can afford without scrimping on other needs. If you need to save for retirement or college, save. Don’t think your Florida home is going to pay for them.
2. If you need to move in less that seven years, then rent, don’t buy. You will be hard pressed to break even on your Florida home unless you live in it for a long time.
3. Values could stay depressed for many years. The only way you can plan to build equity in your Florida home is to pay down the mortgage.
Whether buying or selling a Florida short sale or foreclosure or renting; make smart decisions in light of today’s economy. Today’s housing market is still unraveling.
Mortgage Rates Set Fresh 2011 Low After Jobs Report
Fixed rate home mortgage loans dropped for the eighth straight week to a new low for 2011 amid concerns of another economic slowdown this year, according to data from Freddie Mac and a report by The Wall Street Journal.
The 30-year fixed-rate mortgage averaged 4.49%, down from 4.55% last week and 2010’s 4.72% average. Rates on 15-year fixed-rate mortgages fell from 3.74% to 3.68%. 15-year fixed-rate mortgages averaged 4.17% in 2010.
Lawyers Get More Time to Finish Foreclosures
Florida foreclosure defense is translating into more time for plantiff bank attorneys to complete a foreclosure, according to an article in the Palm Beach Post.
Due to the reality of Florida’s overloaded court system and swirling questions surrounding the validity of foreclosure paperwork, Fannie Mae is now allowing bank attorneys up to 450 days (about 15 months) for lawyers to complete a foreclosure before fines are levied. The previous time limit was 185 days, or about six months.
The increased time needed to complete a foreclosure legally and correctly against a homeowner is due in large part to Florida foreclosure defense attorneys working to protect the rights of South Florida homeowners, according to Roy Oppenheim.
Obama Blames Wells Fargo, Bank of America, Chase for Modification Failures
The three largest U.S. mortgage lenders are getting some heat from the Obama administration for the failures of the federal foreclosure-prevention program, according to The Associated Press.
The lackluster performance of Wells Fargo, Bank of America and Chase with helping homeowners lower their mortgage payments has led the Obama administration to remove financial incentives it had given these lenders. (more…)
When the real estate market collapsed, Miami’s downtown epitomized the worst excesses of the building boom. Glittering new towers sat mostly vacant. Today Miami’s downtown real estate is booming and bustling with life and commerce thanks to foreign investors and renters.
A report by the Miami Downtown Development Authority indicates that 85 percent of new condo units are occupied. Downtown Miami’s population now numbers about 70,000 compared to 40,000 ten years ago. In spite of Miami-Dade’s 13.2% unemployment rate, downtown bars, shops and restaurants buzz with activity at the end of the workday. Sales at the swank Icon Brickell average 47 units a month.
The bad:
Clearing the backlog of foreclosures slows again as some delinquent homeowners successfully maintain that their mortgage companies can’t prove they own the loans, therefore forfeiting their right to foreclose. After last fall’s robo-signing debacle, many homeowners are waking up and realizing their banks are guilty of sloppy practices at best and forgery at worst. Oppenheim Law continues to see banks dismiss foreclosures.
And the ugly: Double Dip Housing is no Ameri-cone Dream
As South Florida housing prices hit a new low, the The New York Times and Wall Street Journal chime in unison with a cherry on top: Goodbye, American Dream. It seems renting is the new ‘black’ in real estate fashion as desperate sellers watch not-so-desperate buyers sit on the sidelines waiting for the bottom to hit; while they rent in Miami luxury.
The S&P/Case-Shiller National Index, released today, indicated prices nationwide fell 4.2% in the first quarter after declining 3.6% in the fourth quarter of 2010, in spite of increases in 2009 after the home buyer tax credit and early 2011. (more…)
The Florida Court system, including judges, nearly faced mandatory furloughs and unpaid vacations due to an emergency shortfall in its budget. Court employees faced up to 30 days of unpaid vacation through the end of May. The reason for the short fall was the precipitous drop in foreclosure filings, which generated the fees the courts relied upon for the majority of their budget. With the huge numbers of foreclosures in years past, the estimated revenue from the foreclosure fees meant that the Florida legislature allocated less money from the general state funds to the courts. This reliance on foreclosure filings fees resulted in the courts seeming a bit too amenable to the big banks and the rushing through of foreclosures that would have benefited from more scrutiny. Knowing that the courts were not examining the documents carefully, big banks were able to forge the required paperwork on a massive scale. The forging continued until the document mill scam was uncovered.
With the major banks virtually halting all of their foreclosures due to the document mill scandals, the fees have dried up and now we can see the impact of the courts falling asleep at the switch. The tremendous irony in the matter is that the failure of the courts to properly scrutinize fraudulent foreclosures, leading to the halting of new foreclosures and the drying up of the courts’ fees, would have lead to new foreclosures. Only this time, court employees would have been processing their own foreclosures. According to the Sun-Sentinel, most of the hardship of the court furloughs would’ve been felt by low income employees who are already struggling to make ends meet. (more…)
Reporting on the winning and losing headlines, South Florida Law Blog brings you the break down and what this means to the Florida homeowner.
While South Florida is #1 for mortgage fraud and foreclosure settlement talks between banks and the Obama administration appear futile at best, this week’s new was not all doom and gloom.
Pending home sales up 18% in Miami-Dade
Pending home sales rose 18 percent in Miami-Dade County over the course of the past month, according to new data released today by the Miami Association of Realtors.
Pending home sales, which include single-family home and condominium unit sales, were also up 3.24 percent month-over-month in March, the figures show.
“Increased pending sales reflect the existence of pent-up demand and should result in strengthening home values as distressed housing inventory continues to be absorbed,” said Jack Levine, chairman of the board of Miami Realtors.
Hiring Shows Growing Strength
The American job market is starting to show some muscle, according to The Wall Street Journal.
The jobless rate, our most politically salient measure of economic health, edged down to 8.8% in the fourth consecutive monthly decline despite the fact that more Americans entered the job market.
“It’s a very solid report that shows the labor market gaining momentum,” said David Greenlaw, an economist with Morgan Stanley in New York.
The public sector remained a weak point, as local governments shed 15,000 jobs last month in an effort to close budget gaps, but many other sectors showed strong growth, according to The Wall Street Journal. (more…)
I’m sorry, is this 1811 or 2011? Back in the day, say the 1800’s, the use of debtor’s prisons was widespread; signatories to the Declaration of Independence, James Wilson and Robert Morris were both later incarcerated, as were 2,000 New Yorkers annually by 1816. Henry Lee III, better known as Light-Horse Harry Lee, a Revolutionary War general, former governor of Virginia, and father of Robert E. Lee, was imprisoned for debt between 1808 and 1809. Sometimes, imprisonment would result from less than sixty cents’ worth of debt.
That was then, this is…then or now?
Last week, The Wall Street Journal published an article about Debtors’ Prisons in 2011. Currently, several U.S. states allow borrowers who are behind on credit-card payments, auto loans and other bills to be jailed. However lawmakers, judges and regulators are beginning to crack down on this practice, which Foreclosure Defense attorney Roy Oppenheim calls “illegal, unconstitutional and un-American.” In this video, Oppenheim explains how that happens and how to make sure that that doesn’t happen to you.
So how can Florida homeowners avoid becoming a part of this debtor nation? Roy Oppenheim says, “Don’t put your head in the sand, by ignoring the situation. If you’re in foreclosure, for example, make sure that deficiency judgment isn’t entered against you. Get legal counsel and make sure you know your rights.”
Over a year ago I felt compelled to call out The Wall Street Journal after a particular column really got under my skin.
