Foreclosure Defense, Foreclosures

Wave of Foreclosures and Evictions Expected as Federal Moratoriums Expire

The federal moratorium on foreclosures and evictions officially expired over the weekend, leaving the legal system braced for an impending wave of filings. To offset the wave of foreclosure and eviction filings which will no doubt be on the way, lawyers and courts are finding creative solutions to the problem.  

The eviction moratorium was put into place as a way to help tenants and homeowners who were left with no income due to the coronavirus causing widespread shutdowns across the country.

President Biden has pushed on Congress to approve a one-month extension for all residential evictions. However, at this time, no federal congressional action has been taken to extend the moratorium. 

Now that the moratorium has officially expired, the courts are waiting for an influx of filings, which will undoubtedly flood their dockets. The next few months will be a real test on the court system, especially once tenants are served with an official writ of possession, forcing them out of their homes.  

The Dade County Bar Association said they will support lawyers and judges as best they can during this time. One effort may come in the form of programming for the public, to help them navigate the legal system during the process. This help will be available to both tenants and homeowners, since the lifted moratorium was on evictions, as well as foreclosures. The bar association currently has two active committees working on the problem with one committee focusing on the county courts and another committee focusing on foreclosures. Given the fact that most of these individuals are already struggling financially, the need for pro bono or free legal assistance will also likely be needed.   

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com 

Source: Daily Business ReviewCourts ‘Going to Get Overwhelmed’: Creative Lawyering Emerges as End of Foreclosure Moratorium Looms

 

Foreclosures

Experts Warn of New Foreclosure Crisis in South Florida

With the federal moratorium on evictions and foreclosures set to expire, housing experts are predicting a new foreclosure crisis in South Florida.

The crisis began for many last year as COVID-19 forced thousands of Floridians out of jobs. It was not until April 2020 when the Trump Administration and many states hit the pause on all foreclosure and eviction proceedings on federally backed loans. States and the federal government extended these moratoriums throughout 2020 and into 2021. These extensions allowed individuals to remain in their homes and postpone the foreclosure process. 

Federal moratoriums offered through three federal agencies, including the Departments of Housing and Urban Development, Veterans Affairs and Agriculture, and the Federal Housing Finance Agency, which oversees both Fannie Mae and Freddie Mac lending programs, are scheduled to expire finally on July 31.   

With foreclosures expected to begin again in the second half of 2021, housing experts fear that the courts will now be flooded with a wave of foreclosure cases that will not only clog the courts but will also depress the real estate market for South Florida.  

Members of the Miami-based nonprofit, Floridians for Honest Lending, say they worry that with property values going up, banks will have a big incentive to proceed with filing foreclosures. As the courthouses will likely be flooded with cases, pressure will increase to clear these cases from the books, which means that homeowners could be pressured to settle when the otherwise would not agree to do so.  

A similar situation was seen in 2008 where the number of cases hitting the courts led to what experts called “rocket dockets” or courts pushing for clearing as many cases as possible, leaving homeowners at the short end of the stick.   

After the 2008 recession, reforms were passed to prevent this situation from occurring and ensuring that predatory lending practices were barred, and homeowner rights preserved. Experts believe that the upcoming situation will put these regulations to a true test.  

Normally, these cases are either resolved by a short sale or auction, or the owner can work out an agreement with the lender, including a loan modification. The rocket-dockets that were seen in 2008 tended to discourage any type of agreement that would otherwise benefit the borrower in resolving these cases. This risk goes up when prices are up, and banks can get more money from seeking out new customers instead of working with existing ones.   

Currently, 2,110 foreclosure cases are pending in Broward County.  However, pending cases only tell part of the story. Thousands of other cases have yet to be filed due to the ongoing moratoriums. Thus far in 2021, 468 new foreclosures have been filed in Broward County, which pales in comparison to the 1,365 filings that were pending at the same time in 2020. Miami-Dade County has seen 650 new cases filed by the end of May 2021, as compared to the 2,500 that were pending at the same period in 2019. 

Cases are expected to begin coming in after the moratorium ends August 1.  In the meantime, homeowners struggling to pay their bills are still recommended to work with their lenders on forbearance measures or loan modifications. 

Please click here to read more.  

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com 

COVID-19, Foreclosure Defense, Foreclosures

Bank of America, Chase and Wells Fargo Announce Plans Following Expiration of Mortgage Foreclosure Moratoriums

As the stimulus programs put into place come to an end this year, many homeowners worry about what their futures will hold. Approximately 2.1 million homeowners are still utilizing these mortgage forbearance plans offered following the start of the pandemic, according to figures from the Mortgage Bankers Association, which means that many people are still set to be adversely affected once the moratoriums are lifted. 

Even more concerning, nearly 1.8 million families are not in forbearance on their mortgages but are at least 90 days delinquent on their mortgage accounts as of April 2021, according to data from Black Knight.   

COVID-19, Foreclosure Defense, Foreclosures

Emergency Mortgage Relief Could Extend Through 2022

Since the start of the COVID-19 pandemic, millions of homeowners have benefited from the mortgage relief programs offered by the federal government, and some private lenders.  Now that a year has passed, approximately 2.5 million homeowners are still enrolled in some sort of mortgage relief program, whether it be payment suspension or mortgage forbearance, according to the Mortgage Bankers Association (MBA) 

It is for this reason that the Consumer Financial Protection Bureau (CFPB) wants to extend these provisions and programs further into the future to ensure that these homeowners are not forced into foreclosure.  

Foreclosure Defense, Foreclosures

10 Percent of American Families at Risk of Eviction, Foreclosure

More than 11 million American families are facing a crisis when it comes to housing, specifically when it comes to making their rent and mortgage payments, according to a new report released by the Consumer Financial Protection Bureau (CFPB).

The CFPB conducted a survey of the housing market during the coronavirus (COVID-19) pandemic and found that approximately 2.1 million American families are at least three months or more behind on their mortgage payments. Approximately 8.8 million of them are late on paying their rent.  

Foreclosure Defense, Foreclosures

How to Save Your Home from Foreclosure in Florida

Many Americans have been able to utilize the federal and state mortgage foreclosure moratoriums during the COVID-19 crisis to stay in their homes. But a record number of homeowners have fallen behind on their mortgage payments. According to statistics from the Consumer Financial Protection Bureau, the number of Americans who have fallen three or more months behind on their mortgage payments increased by 250 percent in 2020, reaching a record of over two million households nationwide. These figures have not been seen since the Great Recession.  

It is estimated that the total amount owed is nearly $90 billion in deferred principal, interest, insurance, and tax payments. Financial analysts predict that the nation will soon see a wave of foreclosure lawsuits hitting the court system. However, it is possible for a consumer to stop the process from getting out of control and allow the individual to stay in his or her home.  

The first step should always be for the homeowner to reach out to his or her mortgage lender. Pursuing a foreclosure costs the lender money. In fact, they end up losing more money through that process than they would gain if they worked on a deal with the homeowner to stay in the home, which is why so many of them are more than willing to negotiate 

Many mortgage lenders are offering loan deferral programs or are either lowering or deferring interest payments for a temporary period. They may also be willing to waive late fees and penalties. The key is the homeowner needs to ask, first. The lender is not going to proactively reach out to the homeowner to see if he or she needs assistance. Ultimately, it is up to the homeowner to request this.

If the consumer has already reached out to the lender and is not able to realistically catch up on payments and late fees, it may be best to sell the property to pay back what is owed. For this plan to truly succeed, the borrower needs to price the property to sell. The longer the home stays on the market, the longer the homeowner will be behind on his or her payments, making the home even more difficult to sell.   

While the home is in default or foreclosure, the homeowner will likely be receiving mail from the court or lender regarding important dates and opportunities to make a deal on his or her payments. It is extremely important that all mail related to the home be opened immediately, be read, and if a response is required, be responded to quickly. The last thing the homeowner wants to do is miss an important court date or fail to take advantage of an opportunity if the lender is offering lower payments or a deal that could allow the person to remain in his or her home 

Lastly, to keep the home, it is important to continue making mortgage payments, if possible. Many people will take the idea of a moratorium and assume it means he or she does not have to pay on the mortgage debt during that periodThe problem is, during a moratorium, mortgage bills continue to incur, and if payments are not made, the homeowner will fall behind even more than he or she was at the start of the moratorium. The mortgage bill is arguably one of the most important payments the homeowner makes, even above other bills or debts, such as credit cards or medical debt.

Filing for bankruptcy can help. It may seem counter-intuitive, but when someone is facing foreclosure and is in the middle of a major financial crisis, bankruptcy can be a viable option to help save that person’s home. Ultimately, it depends on your specific financial situation and the type of bankruptcy you file – but bankruptcy can be used as a tool to help keep your home.

The Power of the Automatic Stay

If your home is already set for a foreclosure sale, you may be asking, “how can I make it stop?” Filing for bankruptcy can put a stop to the process or at the very least postpone it. As soon as a petition for bankruptcy is filed, the court issues an order called an “automatic stay,” which puts an immediate halt to all collection activities that were happening to the homeowner before the petition was filed. This automatic stay also applies to foreclosure cases.  Creditors (including your mortgage lender) must immediately cease collection attempts. Even if the mortgage lender has the home scheduled for a foreclosure sale, the sale will be postponed during a pending bankruptcy.

Please click here to read more.  

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com 

 

Foreclosure Defense, Foreclosures

Foreclosure Report 2021: What to Expect in the Coming Months

Foreclosures have been essentially at a standstill due to the moratorium issued by state and local governments on foreclosures and evictions, as well as forbearance programs to help keep families remain in their homes during this difficult time. However, these efforts will expire at some point, which has many worrying about what will happen once these programs end.  

According to the Federal Reserve Bank of St. Louis, approximately 500,000 borrowers avoided foreclosure during the last quarter of 2020 due to various relief programs available to them, including the forbearance program offered through the CARES Act.

COVID-19, Debt Relief, Foreclosures

Biden Extends Ban on Evictions and Foreclosures through March

Shortly after being sworn in as the nation’s 46th president, Joe Biden signed several executive orders. One of these signed orders included extending the ban on evictions and foreclosures for individuals affected by the COVID-19 crisis.

This new order extends the Centers for Disease Control and Prevention’s (CDC) moratorium that was set to expire on January 31, 2021. The CDC’s order first went into effect in September 2020. This new executive order extends the ban for at least an additional two months past the expiration date.

COVID-19, Foreclosures, Kingcade Garcia McMaken

Evictions Pile Up as DeSantis’ Moratorium Set to Expire in Florida

Both landlords and tenants are waiting with bated breath to see what will happen when it comes to the current moratorium on evictions in Florida. With the hold on evictions set to expire at the end of this month, no official statement has come from the Florida Governor’s office regarding whether Gov. Ron DeSantis intends to extend the moratorium through the end of September. In the meantime, the number of eviction cases are piling up, waiting to proceed once the freeze on evictions is lifted.

The moratorium on evictions related to the coronavirus (COVID-19) pandemic originally took effect on April 2, during the height of the epidemic. As the hold on evictions now enters its fifth month, landlords are demanding the stay be lifted, allowing them to proceed with business, while tenants are requesting the hold on evictions be extended, giving them additional breathing room to get back on their feet during this difficult time. However, many landlords argue that the individuals taking use of this moratorium do not actually need the assistance but are simply taking advantage of the statewide ban.

Coronavirus, COVID-19, Foreclosure Defense, Foreclosures

Governor DeSantis Issues Amended Executive Order on Foreclosures and Evictions

The statewide moratorium on evictions and foreclosures during the coronavirus (COVID-19) crisis has been extended via an executive order issued by Gov. Ron DeSantis. However, critics are questioning the language within the order itself as to just what it means for Florida residents facing evictions or foreclosures.

The executive order was signed and announced on July 29. However, the amended language in this new executive order does not prevent all evictions and foreclosures like the previous one did.