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Posts Tagged ‘Foreclosure’

3 Reasons to Buy a Pre Foreclosure Property

August 11th, 2010

By Mark Schecter | No Comments »

pre-foreclosureA pre foreclosure is a property that is only steps away from being repossessed by the mortgage lender.

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.

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Posted in Broward Real Estate, Foreclosure, Fort Lauderdale Real Estate, Property Investment, South Florida | No Comments »

Buying Foreclosures in Upscale Communities

August 6th, 2010

By Mark Schecter | No Comments »

Beautiful Home, St. Pete, FLWhile Florida’s real estate market attempts to recover from the historic crash, a large number of properties remain in the foreclosure process.

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

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Posted in Foreclosure, Fort Lauderdale Real Estate, South Florida | No Comments »

Foreclosure Rates and Mandatory Mediation in South Florida

August 3rd, 2010

By Mark Schecter | No Comments »

Recent reports by RealtyTrac and Condo Vultures indicate the foreclosure crisis is still haunting Broward, Miami and other South Florida areas… but perhaps, not as much as it did in 2009.

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

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Posted in Broward Real Estate, Commercial Foreclosures, Foreclosure, Miami Real Estate, South Florida | No Comments »

How to Deal with Foreclosure Threats from Lender

May 26th, 2010

By Mark Schecter | No Comments »

If your mortgage has been in default for months, it is likely your lender is taking steps to foreclose on your property.

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.

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Posted in Broward Real Estate, Commercial Foreclosures, Foreclosure, Fort Lauderdale Real Estate | No Comments »

Property Investors Buy Foreclosures in Broward County

May 5th, 2010

By Mark Schecter | 1 Comment »

notice-foreclosure-mdRealtyTrac is an online resource that provides information on foreclosures in Broward County, Florida and throughout the US.

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.

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Posted in Broward Real Estate, Commercial Foreclosures, Foreclosure, Fort Lauderdale Real Estate, Residential, South Florida | 1 Comment »

South Florida Real Estate News: Week Ending March 6

March 6th, 2010

By Mark Schecter | No Comments »

newspaperPending Homes Sales Up in South Florida

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.

foreclosurerates

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…

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Posted in Commercial Foreclosures, Commerical, Foreclosure, Fort Lauderdale Real Estate, In the News, Miami Real Estate | No Comments »

Are you a Commercial Tenant Dealing with Foreclosure?

February 24th, 2010

By Mark Schecter | No Comments »

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.

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

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.

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Posted in Commercial Foreclosures, Foreclosure, Real Estate Law, South Florida | 2 Comments »

Foreclosures in South Florida

July 18th, 2009

By Mark Schecter | 2 Comments »

foreclosure-mdForeclosures are continuing throughout South Florida; not only in the residential market but also amongst commercial real estate.

The Cabana Bay condominium project in Fort Lauderdale is one of the latest to receive a foreclosure complaint from Bank of America. Construction commenced on the six story 18 unit project in March 2007 and continued for a mere two months thereafter. The mortgage with Bank of America exceeds $5 million.

Wachovia Bank recently filed an $11.8 foreclosure action against Shear Construction and Development, a Miami-based company, regarding several residential properties in the Miami, Dade County area.

Shear Construction is no stranger to Wachovia foreclosure complaints. They are presently a defendant in two other pending foreclosure actions involving Ponce de Leon Condominiums in Coral Gables, a $13 million project, and a $2 million mortgage for Flamingo Ranch Estates, a residential development.

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Posted in Commerical | 2 Comments »