This move follows JP Morgan Chase’s decision to suspend 56,000 open foreclosure cases.

The unprecedented foreclosure freezes come after bank employees and affiliate companies admitted to a process of blindly executing foreclosure documents without first reviewing them.

Tom Kelly a spokesperson for JP Morgan Chase says the company has begun to re-examine affidavits and other documents filed in the pending foreclosures to confirm that the information is accurate and meets the standard of review.

And Bank of America says it plans to “amend all affidavits in foreclosure cases that have not yet gone to judgment.”

Most delinquent homeowners welcome the freeze as it halts pending foreclosures and buys them more time to bring their mortgages current.

But real estate agents and other professionals worry that the freeze will eventually hurt Florida’s already fragile and recovering housing market.

“Bank-owned properties make up about 40 percent of home sales in South Florida, and suspensions by JP Morgan Chase, Bank of America and GMAC could deliver a debilitating blow to that crucial segment of the embattled real estate market,” according to an article from Miami Herald.

Pending home sales will remain in limbo until the banks resolve the issues and end the moratorium on foreclosures.

Have you been affected by the foreclosure freeze? Share your story in the comments section below.

While the foreclosure process is ongoing, the homeowner is allowed to live in the home and make decisions to sell the property.

In most cases, if the homeowner is willing and able to bring his mortgage current, the lender is eager to stop the proceedings and allow him an opportunity to stay in the home.

However, sometimes the owner cannot afford to keep the property and must sell as quickly as possible.

Here’s why you may want to consider buying pre-foreclosure:

Price

Pricing is a major benefit when it comes to buying pre-foreclosures. Because the homeowner is forced to sell the property to prevent losing it, he or she are more inclined to consider prices that are substantially lower than the property’s actual value.

It is not unusual to find a pre-foreclosure property at half (or less than half) of its value.

Timing

Florida’s real estate market is saturated with a huge supply of pending foreclosures.

If you are able to get a loan, now may be a great time to buy prime, upscale real estate as homeowners continue to drop prices.

Negotiate with Property Owner

You can negotiate directly with the property owner when you’re buying a pre-foreclosure. This gives you an advantage.

You have leverage to negotiate a good deal and the homeowner has an incentive to sell the property fast to prevent losing it to the mortgage company.

Find Pre Foreclosures

You can start your search for pre-foreclosures in the same places you would look for other properties.

Search the Internet. Browse the local newspapers. Visit the foreclosure courts in and around your county.

If you need help locating pre-foreclosures, call 954-779-7009 or email our  real estate lawyers today.

From April to June 2010, about 14,500 foreclosure actions were filed in the Florida courts, but only a percentage of those properties are inhabited by the homeowners.

Others that remain vacant may be promising opportunities for investors or families looking to move.

The foreclosure process can take months to complete and with the current backlog, it may take longer.

In some cases, the lender and homeowner must sit for mediation in hopes of avoiding the foreclosure. And although the goal is to mediate within 120 days, that doesn’t always happen. If the two sides cannot reach an agreement, the process continues until the lender succeeds at repossessing the property. A judgment is then entered and the foreclosure sale is scheduled.

If you have thought about buying another home, now is a good time to consider foreclosures. (Perhaps it’s great timing to buy into that upscale community you love!)

You don’t have to wait to buy from the banks. You can buy your dream home and at a fraction of its actual value.

If you are a property investor, upscale foreclosures are a good way to diversify your real estate portfolio.

Like most investors, you want to buy properties that will increase in value and be worth more than you paid when you’re ready to sell. If you find the right foreclosure at a good price and in a nice community, when the market rebounds you can sell it for significantly more than you paid.

Or you can rent the property as there is a demand for rentals throughout the South Florida area.

Are you looking to relocate? Have you considered buying a foreclosure?

Before you start your search, contact our real estate lawyers for help finding foreclosures in upscale communities.

Image credit: EPI Photography

In the second quarter of 2010, RealtyTrac – a California based research firm – reports that Florida is rated the 10th highest for foreclosures, in the company of Arizona, California and Nevada.

The Miami metropolitan area alone has nearly 4 percent of its homes in the foreclosure process, and Orlando is rated 8th in the nation.

Dealing with massive backlogs

The Florida courts have been overwhelmed trying to deal with a massive backlog of cases.

Broward County is currently seeing approximately 500 new foreclosure cases filed each week. Of those, more than one-third are not occupied by homeowners and remain vacant and susceptible to vandalism.

The county recently introduced mandatory mediation in hopes of thinning out its backlog of more than 50,000 cases. Palm Beach later followed suit and started a mediation program of its own.

Thanks to a mandate passed by Florida’s Supreme Court, you can expect more state courts to institute mediation programs similar to Broward County’s. However, the mediation programs are mandated for homes that owners reside in and not investment properties.

While lenders cannot be forced to restructure home loans, they are encouraged to communicate and hopefully reach an agreement that allows the homeowner to remain in the property.

Is the market recovering?

Despite the seemingly dismal news, a recent report by Condo Vultures indicates that the current foreclosure rate in South Florida is down nearly 50% compared to this time last year.

From April to June of 2009, banks commenced more than 28,000 foreclosure actions, compared to approximately 14,500 from April to June of 2010, according to the report.

The drop in foreclosure filings can be attributed to two primary factors. One, the costs associated with repossessing a property versus a short sale, is significantly more. Lenders are more inclined to agree to short sales whenever possible.

Two, the recent law changes mandating mediation of properties under homestead exemption has increased the time necessary to complete the foreclosure process because lenders now have to work with homeowners. The process that once took a couple of months to complete, can now take several months to years to finalize.

If you are dealing with foreclosure, contact our real estate lawyers today. You can use this form to email or call us at (954) 779-7009.

Sources: Realty Trac, Condo Vultures

You may already have a stack of threatening default notices waiting to be opened.

If you have any desire to save your property, you have to get those notices opened and deal with the foreclosure threats right away.

1. Do your research.

Educating yourself about the alternatives to foreclosure is one of the most important things you can do.

You may have time to bring the default mortgage current before the lender actually starts the foreclosure proceedings.

There are likely other options available to you as well, including a loan modification, bankruptcy or short sale.

2. Communicate with the lender.

It is imperative that you keep the lines of communication open with your mortgage lender.

Stop ignoring the default notices and accept their telephone calls.

Keep the lender informed of changes in your business that is affecting your ability to pay the mortgage.

3. Ask for help

Mortgage lenders will sometimes go out of their way to help you.

They do not want to deal with a costly, time-consuming foreclosure anymore than you do.

They can agree to modify your loan, lower your monthly payments, or accept a short sale.

There is no guarantee these tips will save your commercial property from foreclosure. (Sometimes there are circumstances beyond your control that make it inevitable.) But they will definitely get you moving in the right direction.

You may also want to read – Get Help from your Mortgage Lender – for more tips regarding foreclosure.

According to recent statistics, real estate sales are up in Broward, mainly in the Fort Lauderdale area. In March 2010, approximately 3200 properties were sold; compared to 2200 in February. And, the average property price of $143,000 is up from $137,000 in the previous month.

Despite the increase in real estate sales, Broward County’s commercial (and residential) markets remain saturated with vacant foreclosures and unbeatable deals. Most of these deals can be found in Fort Lauderdale, the largest incorporated city in the county.

If you are a property investor looking to buy a property in foreclosure, Fort Lauderdale is a good place to start your search. But before you invest any capital, you should understand the foreclosure process so you can catch the properties with the best deals.

There are 3 steps that occur during the foreclosure process:

Pre-Foreclosure: During this period, the property owner is behind on mortgage loan payments but no legal action has been taken to start the foreclosure process. At this time, the property owner is more inclined to consider offers to avoid foreclosure and save their credit rating.

Notice of Default: This is the first step that initiates the foreclosure process.

Sale: If you fail to prevent the foreclosure, the lender will eventually be able to take the property. The length of time the process takes to complete is determined by the state you live in.

In Florida, once a judgment is reached the foreclosure sale is scheduled to take place on the courthouse steps. In some states, the property owner may be given an opportunity to get the property back. This is known as the redemption period, but is not applicable in Florida.

Buying commercial foreclosures and other real estate is a complex and tedious process. Our Fort Lauderdale real estate lawyers can help you navigate the purchase process and find the right property for you. Contact us today to start your search for commercial foreclosures.

Buying foreclosures and other real estate is a complex and often tedious process. The Fort Lauderdale real estate lawyers of Schecter Law can help you navigate the purchase process. Contact us today to start your search for commercial foreclosures. You can use this form to email or call us at (954) 779-7009.

Since last month, foreclosure filings in Broward County have increased along with the foreclosure rate. As homeowners struggle to find work, they are finding it more difficult to make their mortgage payments.

“Broward had the eighth-highest foreclosure rate among Florida’s 67 counties, with one in every 127 housing units receiving a filing.”

In Broward, there are 6300 homeowners in the county facing foreclosure, which is up from 4600 this time last year. In Palm Beach, the foreclosure filings in March totaled nearly 4,000, which has doubled since April 2009.

Read more here…

Florida Senators Seeking Relief for Homeowners Affected by Chinese Drywall Litigation

Florida Senators have written letters to Fannie Mae asking the company to allow six months of mortgage relief for Florida homeowners affected by the Chinese Drywall problems.

This follows Fannie Mae’s decision to provide relief to the seven families awarded more than $2.5 million in damages weeks ago in federal court.

“Many homeowners with the problem drywall are concerned about possible health effects, though the government has yet to link the material to nosebleeds, respiratory problems and other reported symptoms. Some residents have moved out and are juggling temporary housing costs in addition to paying their mortgages.”

The senators are also asking that the homeowners’ credit ratings are not negatively affected by the drywall problems.

Read more here…

Broward County begins a new era March 30 with online foreclosure auctions, a move expected to improve efficiencies and attract people worldwide who now can bid on homes in their bathrobes.

Broward, which had Florida’s third-highest foreclosure rate for February, will tweak its auctions based on lessons learned from Miami-Dade County, which moved the courthouse sales online Jan. 11. Palm Beach County auctions hit the Internet later that month.

Bidders must register for the online sales at Broward.realforeclose.com. Registration is free, but the county will charge a $60 fee to each winning bidder to cover the cost of automating the auctions. More than 1,000 people signed up as of March 18.

Read more…

Shamrock Condominiums is Facing Foreclosure

Thirty-six units in the Shamrock Condominium conversion project in southern Miami-Dade County’s Kendall area face default.

FirstBank Florida, which is part of FirstBank Puerto Rico, filed a foreclosure lawsuit March 11 against C&R Properties at Kendall and managing member Carlos Chuman, according to Miami-Dade County Circuit Court records. It seeks $5.9 million outstanding from a 2007 mortgage, plus interest and fees.

Read more…

Florida TaxWatch: Beware of Amendment 3

Florida TaxWatch issued a report Wednesday that finds most Floridians acknowledge that the Save Our Homes amendment is flawed policy.

The 1992 amendment to the Florida Constitution – which limits annual assessment increases to 3 percent – has resulted in “sometimes dramatically disproportionate tax burdens” among homeowners and is clearly “an unintended consequence of what has come to be regarded as a flawed policy,” the organization said.

The publication, titled “When Good Policies Go Bad: Unintended Economic Consequences of Assessment Caps,” says that, in 2008, voters expanded the policy to include non-homestead properties because business interests convinced the Tax and Budget Reform Commission that they carried a disproportionate share of the overall property tax burden. Amendment 1 set an annual 10 percent assessment increase limit for non-homestead property.

Read more…

Pending home sales in Miami-Dade and Broward counties were up in February, as low prices and a tax credit for first-time home buyers appeared to drive sales.

In Miami-Dade, the number of people who agreed to purchase a home in February was up 9 percent versus January at 9,164 homes and condos. Compared to year-ago levels, the number of pending home sales was up 61 percent, the Realtor Association of Greater Miami and the Beaches reported Thursday.

In Broward County, pending home sales increased 4.7 percent versus January to 7,791 homes. Compared to last year, pending sales in Broward were up 62 percent.

Read more here…

Foreclosure Statistics in South Florida Dropped

The number of foreclosures in South Florida this week dropped to 1,871 from 2,320 in the same week last year, according to data from Condo Vultures Realty. Year-to-date, the number of foreclosures dropped to 14,314 from 16,686 at the same point last year. The graph below shows foreclosure activity in South Florida’s three counties.

Read more here…

Commercial Upgrades in South Florida’s Office Sector

The bottoming out of the commercial market in South Florida has some businesses taking advantage and upgrading office space.

That’s especially true in downtown Miami and the office market near Miami International Airport that combined have around 2 million square feet of Class A office space coming on the market in 2010.

“You have new supply added and you have new opportunity,” said Bob Orban, senior vice president and branch manager at tenant representative advisory firm Studley.

In some cases, Orban said, tenants are moving up to Class A office space from Class B or Class C. In other instances, tenants are moving within the same class but to a newer building or renovated space. And they’re finding landlords willing to give them free months of rent or paying moving costs.

Read more here…

Even if your lender has already initiated foreclosure proceedings against you, all hope is not lost.

There are resources online that can help you during this tough time.

State of Florida Official Website

When searching online for foreclosure information, you can use the state’s website as a starting point for Florida-specific laws, tips and suggestions.

Credit Counseling Websites

Credit counselors can sometimes be a good resource for homeowners facing foreclosure.

But if you choose to go this route, understand that there are companies suspected of mortgage fraud in Florida so you must proceed with caution.

Only work with reputable companies. You can visit the Better Business Bureau’s (BBB) website to check the company’s history.

Find a Foreclosure Lawyer Online

The Internet is a useful resource for finding a lawyer. You can use search engines like Google and legal directories like Martindale Hubbell to connect with a lawyer in your area.

Need more information about foreclosures in Florida? Check out Foreclosure Information for Homeowners and subscribe to our blog for updates.