One Stop Real Estate Information

This is the anniversary no one wants to celebrate.

“We’re hitting the one-year anniversary of the robo-signing crisis,” noted Roy Oppenheim, Florida foreclosure defense attorney. “The banks said it would take 60 days to fix. It didn’t take 60 days. It’s been over a year.”

A recent article in the Daily Business Review highlights October as the anniversary month when the home foreclosure mess became a certified nightmare. Around this time in 2010, the Office of the Comptroller of Currency and the Federal National Mortgage Association basically asked the people responsible for the mortgage mess to police themselves and conduct self-audits to make sure their paperwork was legal.

About a week later, Bank of America stopped their attempts at home foreclosures nationwide. Bank of America CEO Brian Moynihan assured everyone things would be up and running within a few weeks. A year later, the foreclosure market is still stuck in financial gridlock with no exit ramps in sight.

The numbers don’t lie. In South Florida alone, foreclosure filings are off track by significant amounts (Miami-Dade 66%, Broward County 60%, Palm Beach County 50% to name a few). And it’s not because people are suddenly able to pay their mortgages again. It’s because the long delay has caused the process to be restarted in many cases resulting in even more problems developing.

“We’re seeing a lot of ‘start from scratch,’” Oppenheim said. “Servicer B needs an affidavit from Servicer A, but Servicer A is gone. So you have a problem; there is no solution.”

This is the anniversary no one wants to celebrate.

“We’re hitting the one-year anniversary of the robo-signing crisis,” noted Roy Oppenheim, Florida foreclosure defense attorney. “The banks said it would take 60 days to fix. It didn’t take 60 days. It’s been over a year.”

A recent article in the Daily Business Review highlights October as the anniversary month when the home foreclosure mess became a certified nightmare. Around this time in 2010, the Office of the Comptroller of Currency and the Federal National Mortgage Association basically asked the people responsible for the mortgage mess to police themselves and conduct self-audits to make sure their paperwork was legal.

About a week later, Bank of America stopped their attempts at home foreclosures nationwide. Bank of America CEO Brian Moynihan assured everyone things would be up and running within a few weeks. A year later, the foreclosure market is still stuck in financial gridlock with no exit ramps in sight.

The numbers don’t lie. In South Florida alone, foreclosure filings are off track by significant amounts (Miami-Dade 66%, Broward County 60%, Palm Beach County 50% to name a few). And it’s not because people are suddenly able to pay their mortgages again. It’s because the long delay has caused the process to be restarted in many cases resulting in even more problems developing.

“We’re seeing a lot of ‘start from scratch,’” Oppenheim said. “Servicer B needs an affidavit from Servicer A, but Servicer A is gone. So you have a problem; there is no solution.”

Deficiency judgments are potent, expensive and on the rise according to

experts quoted in a recent foreclosure defense Wall Street Journal article!

If Oppenheim Law had a warning label it might read:

Deficiency judgments can be hazardous to your financial health.  For best results hire a foreclosure defense attorney.

Deficiency judgments are today’s toxic wake up call.

Many Florida homeowners lost homes in the past year when they lost income and stopped paying their mortgage. In typical foreclosure cases, the bank takes the home back and sells it, meanwhile Florida homeowners think its over and life goes on. This is really the calm before the storm…

In likely scenarios, if the bank sells the house for less than what is owed, the bank can sue the homeowner for the balance.

The result is a foreclosure hangover! The remedy is more than Alka Seltzer and B12 can cure.

Foreclosure defense attorney Roy Oppenheim walks us through the scenarios of how to avoid a foreclosure hangover, also known as a deficiency judgment.

“What you should try to do at all cost is avoid a deficiency judgment,” said Oppenheim in a recent video interview.

According to a recent foreclosure story in the Wall Street Journal, 41 states and the District of Columbia permit lenders to sue borrowers for mortgage debt still left after a foreclosure sale. The economics of today’s battered housing market mean that lenders are doing so more and more.

Foreclosed homes seldom fetch enough to cover the outstanding loan amount, both because buyers financed so much of the purchase price—up to 100% of it during the housing boom—and because today’s Florida foreclosures take place following a four-year decline in values.

Ways to Avoid a Florida Foreclosure Hangover by Roy Oppenheim

Deficiency and Deficiency Judgement 101 from Oppenheim Law on Vimeo.

If a bank files a foreclosure they have approximately nine months to convert a foreclosure to a deficiency judgment, Oppenheim warns. So what are your options?

1.  Deed in Lieu or Structured Foreclosure - In this scenario, attorneys work with the bank and come to a settlement where the bank gets the property in decent condition and in exchange the bank waives the right for filing a deficiency judgment against you. Sometimes credit scores can even be protected…

2. Florida Loan Modification - This is many times a more likely scenario if you want to stay in the home.

3. Florida Short Sale – Oppenheim says banks find short sales most accommodating in many cases. A short sale is when you agree to sell the property for less than the bank’s mortgage and the bank agrees to accept the offer. A deficiency can be negotiated and is often waived or reduced and negotiated.

4. Bankruptcy - What options do you have if a bank is pursuing a deficiency in a foreclosure, another option is seeking a bankruptcy attorney, says Oppenheim.

Florida is one on the states where lenders can pursue deficiency judgments and loan deficiencies are yanking borrowers back to a nightmare they thought was over…meet the foreclosure hangover.

Deficiency judgments are potent, expensive and on the rise according to

experts quoted in a recent foreclosure defense Wall Street Journal article!

If Oppenheim Law had a warning label it might read:

Deficiency judgments can be hazardous to your financial health.  For best results hire a foreclosure defense attorney.

Deficiency judgments are today’s toxic wake up call.

Many Florida homeowners lost homes in the past year when they lost income and stopped paying their mortgage. In typical foreclosure cases, the bank takes the home back and sells it, meanwhile Florida homeowners think its over and life goes on. This is really the calm before the storm…

In likely scenarios, if the bank sells the house for less than what is owed, the bank can sue the homeowner for the balance.

The result is a foreclosure hangover! The remedy is more than Alka Seltzer and B12 can cure.

Foreclosure defense attorney Roy Oppenheim walks us through the scenarios of how to avoid a foreclosure hangover, also known as a deficiency judgment.

“What you should try to do at all cost is avoid a deficiency judgment,” said Oppenheim in a recent video interview.

According to a recent foreclosure story in the Wall Street Journal, 41 states and the District of Columbia permit lenders to sue borrowers for mortgage debt still left after a foreclosure sale. The economics of today’s battered housing market mean that lenders are doing so more and more.

Foreclosed homes seldom fetch enough to cover the outstanding loan amount, both because buyers financed so much of the purchase price—up to 100% of it during the housing boom—and because today’s Florida foreclosures take place following a four-year decline in values.

Ways to Avoid a Florida Foreclosure Hangover by Roy Oppenheim

Deficiency and Deficiency Judgement 101 from Oppenheim Law on Vimeo.

If a bank files a foreclosure they have approximately nine months to convert a foreclosure to a deficiency judgment, Oppenheim warns. So what are your options?

1.  Deed in Lieu or Structured Foreclosure - In this scenario, attorneys work with the bank and come to a settlement where the bank gets the property in decent condition and in exchange the bank waives the right for filing a deficiency judgment against you. Sometimes credit scores can even be protected…

2. Florida Loan Modification - This is many times a more likely scenario if you want to stay in the home.

3. Florida Short Sale – Oppenheim says banks find short sales most accommodating in many cases. A short sale is when you agree to sell the property for less than the bank’s mortgage and the bank agrees to accept the offer. A deficiency can be negotiated and is often waived or reduced and negotiated.

4. Bankruptcy - What options do you have if a bank is pursuing a deficiency in a foreclosure, another option is seeking a bankruptcy attorney, says Oppenheim.

Florida is one on the states where lenders can pursue deficiency judgments and loan deficiencies are yanking borrowers back to a nightmare they thought was over…meet the foreclosure hangover.

As October begins with lows in new home sales and mortgage rates and highs in mortgage fraud and foreclosure rates, Oppenheim Law continues to help clients navigate through the legal waters.

On a high note – we are pleased to report Roy Oppenheim has been selected by his peers for inclusion in The Best Lawyers in America® 2012 List in the practice area of Real Estate Law.

“I am truly honored and humbled to garner this recognition by my fellow attorneys,” said Oppenheim, who has created a reputation as the homeowner’s advocate when it comes to foreclosure defense in Florida by educating homeowners and attorneys on the subject.

In other noteworthy highs and lows, Roy Oppenheim offered his foreclosure defense insight to reporters from the Palm Beach Post, Associated Press, Huffington Post and his recent column in the South Florida Law Blog.

Will Clearing Foreclosure Logjam Revive Florida’s Economy? – Palm Beach Post

Housing Danger: Slump a 2012 Liability for Obama – Huffington Post

Foreclosure Mediation Program’s Low Success Rate Leaves its Future in Doubt – Palm Beach Post

News Embargo? Americans Protest, Occupy Wall Street – South Florida Law Blog by Roy Oppenheim From The Trenches

As we enter into the last quarter of 2011, Oppenheim Law and South Florida Law Blog keeps its eye on the Florida real estate market and continue to update subscribers on headline news and views.

Wishing you a safe and happy weekend.

The Oppenheim Law and South Florida Law Blog  News Team