Foreclosure | Real Estate Blog of Schecter Law, PA

Archive for the ‘Foreclosure’ Category

Are you a Commercial Tenant Dealing with Foreclosure?

February 24th, 2010

We all know the foreclosure rate in Florida has hit an all time high in the commercial and residential real estate markets. We see it in the news coverage, hear it over the radio, and read it in magazines and newspapers throughout the state.

But, what does this mean for you?

How Foreclosure Affects Commercial Tenants

While there are several commercial property owners that outright own their real estate; there are others that lease their space. When the property owner is unable to pay his/her mortgage loan and later loses the commercial property to foreclosure, the tenant is usually left suffering and in search of a new location.

The media coverage focuses primarily on how property owners are affected by foreclosures, and not as much on the tenants that lose out in the process.

If you lease commercial (or residential) property in Florida, you should be aware of your rights as a tenant of any property facing foreclosure.

Notification of Foreclosure Proceedings

In many situations, the tenant is the last to hear the commercial property is facing foreclosure, and you may be left wondering where you stand and where you can turn to discuss your options.

In some states, a valid eviction (even after foreclosure) requires that the property owner is notified in writing before an eviction takes place. Where you live will determine how much time you are granted to vacate the property. The time frame can range from weeks to a month, so it is important that you consult a Florida real estate attorney in your area as soon as possible.

Are you a commercial tenant dealing with a foreclosure issue? If so, contact our South Florida real estate attorneys today.

Tags: Commercial, Foreclosure, Real Estate, Residential, South Florida
Posted in Commercial Foreclosures, Foreclosure, Real Estate Law, South Florida | No Comments »

South Florida Real Estate News: Week Ending February 13

February 13th, 2010

By Mark Schecter | No Comments »

Can Court Ordered Mediation Reduce the Foreclosure Rate?

According to recent statistics released by the Florida Supreme Court, foreclosures in the Tri-County area are on the rise. In 2009 alone, more than 143,000 home mortgages fell into default. Since then, foreclosures are up 13.2%.

The Miami and Fort Lauderdale areas were among the top 10 locations in Florida with the highest foreclosure rates. Another report released recently, also indicates Florida has the second highest foreclosure rate in the nation. This means that this problem may be affecting the local economy statewide.

So, what’s being done? In a word, mediation.

Due to overwhelming number of foreclosure lawsuits, Supreme Court Chief Justice Peggy A. Quince ordered every circuit court in Florida to create a mediation program to put in place for individuals involved in the foreclosure process. This is an effort to resolve disputes between owners and lenders without the need for a long, drawn out litigation process.

Prior to participating in mediation, homeowners will be required to undergo foreclosure counseling. This allows them an opportunity to get a better understanding of what they should expect in the process. The new mediation rule may significantly reduce the burdens felt by the borrowers and the courts, and have a positive impact on the foreclosure rate in Florida.

Florida Condos Target Delinquent Owners

Many condominium owners in South Florida are growing tired of neighbors that refused to pay maintenance fees and maintain their properties, but still get to enjoy the same amenities as owners that timely pay the fees they’re responsible for.

While associations are on the hook to pay their bills, delinquent owners are able to watch free cable TV paid for by the association, elect board members and even collect rent from tenants without forwarding a dime to the association they owe money.

There seems to be a general consensus among the condominium owners that struggle to make sure all of their fees are paid in full, and that’s delinquent owners are taking advantage of the condo associations. And, this is not fair to those struggling every month to pay their share to the associations.

As a result of this growing concern, two bills are on the table to stop condo owners from neglecting their obligations. Those bills are:

House Bill 329 – This bill is specifically designed for condo associations, and is sponsored by Rep. Julio Robaina.
Senate Bill 1196 – This bill is designed to address condo and homeowner associations, and is sponsored by Senator Mike Fasano.

If these two bills are passed, the law will be amended to limit the amenities delinquent condo owners receive, and assess strict sanctions on people that fail to stay on top of their payments.

The restrictions that will be put in place could prevent delinquent owners and their tenants from accessing the swimming pools, clubs, etc, and also take away their right to vote at board elections. Most condo owners welcome the Senate and House bills and are happy to see something being done to curb this delinquent behavior.

Foreclosures in Florida: What you Should Know

February 12th, 2010

By Mark Schecter | 2 Comments »

Given the state of South Florida’s commercial and residential real estate markets, the term foreclosure has been thrown around a lot in recent years. This has left many people wondering, what exactly is a foreclosure and am I at risk?

According to Wikepedia, “foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court-ordered termination of a mortgagor’s equitable right of redemption.”

To simplify it a bit, foreclosure is a legal process in which a lender takes ownership of a property when you the borrower is unable to make the payments.

Over the past several months, we have discussed several topics relating to foreclosures. We’ve looked at the foreclosure rate in South Florida, buying commercial foreclosures, and most recently pre-foreclosures.

Today, we’re going to review the types of foreclosure and the steps in the foreclosure process.

Two Types of Foreclosures

There are two types of foreclosures: judicial and non-judicial.

1. In a non-judicial foreclosure a third party is allowed to foreclose or take back any property that is in default. With this type of foreclosure, the mortgage lender is not required to file a lawsuit to take the property. The entire foreclosure process could take as little as 2 to 4 months to complete. Non-judicial foreclosures occur in deed of trust states.

2. A judicial foreclosure takes place in mortgage states. With this type of foreclosure, the lender is required to file a lawsuit in order to foreclose on a property that is in default. Because of this requirement, the foreclosure process may take longer to complete. Florida is a mortgage state and thus, falls under the judicial foreclosure category.

The Foreclosure Process

If you are considering buying a foreclosure, it is important that you understand the steps in the foreclosure process in order to catch properties at the best possible price. Generally, there are 3 steps and they are:

1. Pre-foreclosure. During this time period, the property owner is likely behind on mortgage payments although no legal action has been taken to commence the foreclosure proceedings. During this time, the property owner is inclined to entertain offers of settlement to avoid the foreclosure and save their credit rating.

2. Notice of Default (NOD). This step is the first legal step taken in a formal foreclosure process. The NOD commences the foreclosure action.

3. Foreclosure sale. If actions aren’t taken to stop the foreclosure process, eventually the lender will succeed in taking the property back. Whether you’re in a judicial or non-judicial state will determine the length of the process. In non-judicial states, the process could take months and in judicial states even longer. In the latter, once a judgment is reached the foreclosure sale is scheduled to take place on the courthouse steps.

In some states, property owners are given a time period in which they can get their property back. This period is known as the redemption period, and is not applicable in the state of Florida.

If you’re interested in learning more about buying foreclosures or pre-foreclosures, we want to hear from you.

Tags: Foreclosure, pre-foreclosure, South Florida
Posted in Commercial Foreclosures, Foreclosure, Real Estate Law, South Florida | 2 Comments »