foreclosure: Surprising list of Top Cities for Abandoned Homes!!!
- 06/24/13 05:14 AM
I was surprised at the three real estate markets that have the dubious distinction of being the top three markets in terms of abandoned homes in foreclosure. I was not even close in attempting a guess at this list!! In some cities, the blight is getting out of control thanks to disproportionate numbers of abandoned properties. For some real estate investors, these types of properties are a perfect fit, while other investors want to steer clear of such municipalities. Regardless of how you feel about abandoned property, you need to know where most of it is located in order to exercise the … (5 comments)
foreclosure: Update on the Consumer Financial Protection Bureau
- 09/06/12 05:46 PM
I decided to write an update to the Consumer Financial Protection Bureau as it seems that its purpose and goals have not been disseminated well. On one hand, it is a HUGE bureaucracy with many levels of complicated structure. On the other hand, it is intended to aid consumers.
I have complied a summary of many legal articles written about it and I will write them in a two part blog...
The Consumer Financial Protection Bureau continues to restructure the country’s mortgage finance system as mandated by the Dodd-Frank Act.
Most recently, the agency proposed new rules … (4 comments)
foreclosure: New Jersey State Supreme Court Gives Go-Ahead for Foreclosure Actions
- 08/21/11 12:41 PM
New Jersey State Supreme Court Gives Go-Ahead for Foreclosure Actions. The New Jersey State Supreme Court determined in December of 2010 that four of the nation’s largest lenders had to cease filing foreclosure actions due to the uncertainty over the lenders’ foreclosure systems. Justice Stuart Rabner called a halt to foreclosures by some of the biggest banks in the country in the state of New Jersey. The Supreme Court determined that Bank of America, Wells Fargo, JPMorgan Chase and other major lenders cease and desist all foreclosures in the state until they had proven that they had dealt with potential … (2 comments)
foreclosure: Reuters Study Provides Insight into Fact that Lenders Do Not Have Original Documents
- 07/19/11 07:48 PM
A study by Reuters provides interesting insight into the foreclosure mess and in particular, whether lenders have original documents. As I have blogged, in legal terms, if a lender wants to foreclose, it must prove that it is the real party in interest. It must prove that it has standing (the legal right to sue). Without the original documents, this is difficult.
However, remember that the courts do not require that the lender prove standing when they file the lawsuit. A home owner must assert this as an affirmative or separate defense. If a lender has not been paid … (3 comments)
foreclosure: Chinese Drywall Becoming a HUGE and Costly Problem
- 06/20/11 06:07 PM
I have been working on many short sales, Deeds in Lieu (DIL) and foreclosure defenses in Florida. I recently encountered an almost brand new home that contained “Chinese drywall”. We received an estimate to replace the toxic drywall with new drywall and the price exceeded $100,000! This is a huge problem that is not receiving a lot of media coverage. Perhaps because the affected (infected) areas are mostly Florida, Alabama, Mississippi, Louisiana, Virginia and Southeast Texas homes. As hard as it may be to believe, there is actually a Chinese Drywall Complaint Center (CDCC) and they are now claiming that Fannie … (2 comments)
foreclosure: Judicial Over Reaction to the Foreclosure Crisis
- 05/19/11 06:20 PM
This comes from the son of an Appellate Court Judge so I tend to be defensive of the judges...However, this seems wrong!!! A judge in South Carolina has placed all foreclosures in that state on hold as of this week so homeowners could "mitigate their losses and perhaps modify their loans". Do you know who this really helps? JUDGES - all it does is reduce their case load. But it's their JOB to review these cases individually rather than to make blanket decisions, and this judge is simply lazy and derelict in her duty. This damages the real estate market by … (3 comments)
foreclosure: Use of Revocable Trusts in Foreclosure Properties
- 04/28/11 09:05 AM
There is a new and disturbing trend in foreclosure cases and short sales. "Experts" are advising distressed home owners to place their home in a revocable trust and appoint themself as trustee. There would be advantages to this, but I am suggesting that such home owners consider some free legal advice - and yes, I understand and appreciate the value of "free" advice!! This is arguably fraud. It would appear to a lender or a judge, that this is an attempt to cloud title or delay or obstruct the foreclosure process. If the short sale is unsuccessful, there could be … (3 comments)
foreclosure: THIS is WHY We Need Real Estate Investors
- 04/13/11 03:37 PM
While many families struggle to find the funds to purchase their own home in today’s market where the deals abound but credit is tight, real estate investors are making the market work by buying in bulk. According to the National Association of Realtors, real estate investors represented 17 percent of all home sales nationwide in 2010. And that number is likely to grow as conventional funding continues to be difficult to obtain and the ability to spot and make a creative deal becomes more and more valuable. As foreclosures continue to drag home prices downward, more and more real estate investors … (2 comments)
foreclosure: Another Update on the Misguided, Hapless HAHA
- 04/08/11 06:00 PM
Yes, I am from Jersey and I am going to blog about HAFA...not Jimmy Hoffa but HAFA HAFA! LOL HAFA has largely escaped the sights of Republican members of Congress targeting current programs that they believe are draining taxpayer money and doing little, if anything, to help homeowners. It appears that the Treasury believes that business will continue as usual at least within HAFA, and some politicians have called other foreclosure-aid program termination bills “dead in the water” as the president has promised to veto any such bills that make it through both houses of Congress. Thanks to new updates to … (6 comments)
foreclosure: Lender Lawsuits on the RISE!!!
- 03/24/11 09:18 AM
There have been widely publicized reports of variuos lawsuits against lenders and most have valid, legitimate claims. There was Robo signer, MERS, and numerous actions in state in federal courts. The statistics are alarming and I believe that this is only the beginning. During the fourth quarter of 2010 mortgage servicers faced a 42 percent rise in lawsuits over the preceding months. Interestingly, however, these suits were not, for the most part, related to unwinding foreclosures due to robo-signed affidavits, but instead dealt with failures in the loan modification process. Additionally, many mortgage servicers faced lawsuits from investors thanks to problems … (0 comments)
foreclosure: Practical Considerations in Distressed Real Estate
- 03/20/11 06:03 PM
Practical Considerations in Distressed Real Estate Many home owners have real estate that is worth less than they owe on the property. They wonder what are there options and they have heard confusing terms. People advise them to seek a "Deed in Lieu" (DIL) or a short sale, loan modification or workout. Some of the homes are in foreclosure too.There are frequently many options available for home owners. things are never as dire as it may seem. Careful strategy and planning and dedication to a desired result will often yield the results that you seek. My legal approach starts with focusing on your goals. There are three … (0 comments)
foreclosure: The Truth Always Comes Out
- 02/03/11 05:15 PM
One of the surprising things to me is that it is only now becoming apparent to the outside world that the lenders that are foreclosing on a loan are not the "owner" of the loan. Most loans are sold with in two years of inception and this seems to have been forgotten. What is also forgotten is that government backed programs are the owners of a lot of this debt. This convenient truth is being exposed because lenders are frequently stating that the "investor" (the government) does not participate in the government modification program. WHAT?? sounds like Congress originally passing Obamacare … (3 comments)
foreclosure: A Note about Foreclosure Statistics...
- 02/02/11 01:29 AM
I recently read a report that state officials were touting that the foreclosure rate is dropping and they were really beaming and telling all who would listen that the markets have turned around in Florida. Their statistics are flawed. There were marginally fewer foreclosures filed in 2010 as opposed to 2009 in Florida. HOWEVER, the pool of homes that could possibly enter foreclosure was smaller so the foreclosure rate actually increased. Here is an example...if in Year 1 a state has 1,000,000 homes and 200,000 go into foreclosure, that is a foreclosure rate of 20%. Simple enough. I am going to … (1 comments)
foreclosure: Optimistic reports of a Decrease in Homes with Negative Equity are Flawed
- 02/02/11 01:17 AM
I read a report issued by Core Logic that the percentage of homes in the US that have negative equity dropped from 23% to 22.5% by the end of 2010 was viewed by many as a positive sign that the real estate market may be turning around and/or that there are fewer homes in distress for both now and the future. The one half of one percent decline was a result of the fact that there were 200,000 fewer homes in the US that have negative equity. The report is actually statistically a bad omen. Here is why (I am donning my Ph.D. hat now … (1 comments)
foreclosure: PMI II
- 01/28/11 06:46 PM
I decided to post another blog on PMI since it is largely misunderstood and is seldom spoken about but it plays a MAJOR role in foreclosures and short sales. To further explain PMI - PMI does not cover the full exposure of the lender. They are covering the top portion (maybe 20% in most cases) plus some fees. In the case of a 90% loan, then PMI is usually 10% of loan amount. In order for the Lender not to void their claim for the PMI coverage, several things must happen. The lender must manage the default to its completion, usually … (3 comments)
foreclosure: Analysis of Distressed Real Estate
- 01/27/11 07:13 PM
When I am first contacted by the owner of distressed real estate, I ask them THEIR goals. It is important to establish what they would like to do (i.e. keep the home, walk away intelligently, etc). The next step is that I advise them that there are three issues... 1). Cash flow issues - meaning their monthly money coming in vs, money going out. this is especially significant if the distressed property is an rental property and providing monthly rental income; 2). Tax ramifications...there are tax ramifications to virtually every resolution and these need to be addressed; 3). Credit issues. I then … (2 comments)
foreclosure: Foreclosure statistics can be Misleading
- 01/13/11 05:35 PM
Today the final totals for foreclosures were released and there were over ONE MILLION foreclosures filed in 2010. What is even more alarming is that it is anticipated that there will be a higher number in 2011. It is also frightening to realize that I have noticed a trend in the banking industry - they are delaying filing foreclosures and are waiting longer an dlonger to foreclose!!! Therefore, there is even more homes in default than the foreclosure statistics indicate. There are legitimate reasons for lender delay in filing foreclosure - allocation of resources, foreclosure defenses such as the "robo signer" … (4 comments)
foreclosure: Landmark Foreclosure Decision
- 01/11/11 04:37 AM
The Massachusetts Supreme Judicial Court handed down a landmark decision that may affect millions of homes in foreclosure. The case involved US Bank and Wells Fargo but it will affect lenders and homeowners in other states and banks. The essence of the case (and many like it) are that the lenders cannot foreclose unless or until they can prove that they are the holder of the original Note and Mortgage (or Deed of Trust). In any lawsuit, you must illustrate that you have "standing" or the legal right to sue. In this case, the lender must be the actual party in interest … (4 comments)
Author Bio: Paddy Deighan earned his Juris Doctorate and PhD Paddy consults with taxpayers in regard to tax liens, tax levies, tax levy, offer in compromise, tax debt, tax settlement
I was surprised at the three real estate markets that have the dubious distinction of being the top three markets in terms of abandoned homes in foreclosure. I was not even close in attempting a guess at this list!! In some cities, the blight is getting out of control thanks to disproportionate numbers of abandoned properties. For some real estate investors, these types of properties are a perfect fit, while other investors want to steer clear of such municipalities. Regardless of how you feel about abandoned property, you need to know where most of it is located in order to exercise the … (5 comments)
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