Florida Mortgage Modification Lawyer Blog

Well, I knew it would get bad, but not this bad. It is predicted that 1 million homeowners in the United States will lose their homes to foreclosure this year. Are you kidding me, that is just insanity. And nothing is being done to stop the insanity. Next, the Federal Government is going to go back to these people whose homes were lost and say to them, well we know you lost your home, but, now we have to raise your taxes because of x, y or z. This is mind-boggling. In my opinion, many of these loses could have been prevented had our elected officials in Washington done the right thing, rather than the popular thing.

I cannot justify under any circumstances the wasteful spending of money. Our Federal Government has wasted and continues to waste taxpayer dollars with no accountability. Our American Dream has been leveraged, and we cannot afford to pay the bill. It makes me sick thinking that I am going to educate my children and they will be working their entire lives to pay for the hypocrites that we elected into office. I will stop the rant before I go off the deep end.

Continue reading "One Million Americans May Lose Their Homes to Foreclosure in 2010" »

A Florida homeowner can walk away from a home, but will face foreclosure. This decision should be considered very carefully. Why?

Florida Foreclosures are starting to take a turn for the worst. In Florida, once a home is sold on the Courthouse steps, the lender must apply the monies received from the purchase to the balance of the loan. When I first started practicing law, deficiencies were unheard of, as home prices consistently went up; however, as we all know, those days are memories.

Now, it seems that all the homes being sold on the Courthouse steps are for less than the outstanding balance. Once the lender applies the proceeds of the sale to the outstanding balance, the borrower could be responsible for the remaining deficiency.

In the last two weeks, I've seen several lenders, mortgage companies and banks starting to pursue deficiencies against the former homeowners.

More on this later.....

Continue reading "Florida Foreclosure - Can I Walk Away From My Home?" »

Recently, the Honorable Anthony Rondolino, a Circuit Court Judge in Pinellas County, Florida stated at a hearing in a mortgage foreclosure case:

"I don't have any confidence that any of the documents the Court's receiving on these mass foreclosures are valid."

Judge Rondolino's comments were made while considering whether to reverse his prior decision on granting a summary judgment on behalf of the mortgage company and against the homeowner.

This comment and the recent case law coming out of the Florida's Second District Court of Appeal makes this writer extremely happy.

At the end of last year, the Florida Supreme Court entered an Administrative Order on Mediation in an attempt to help homeowners save their homes.

Judge Rondolino also commented:

"You know what I'd really like to see? I'd like to see in one of these cases where a defense lawyer cross-examines, take a deposition of these people, and we can see whether they ought to be charged with perjury for all of these affidavits. I would just love to see that, ..."

What the Judge was getting at was the mass production of affidavits not based on personal knowledge and submitted to the Court by the lenders in support of the foreclosure.

We recently had a similar case where GMAC Mortgage pursued a foreclosure case only to find out later that they never owned or held the note. Shocking!

There will be more to come on this as the Court System is Fed Up with Fraudulent Documents. Hopefully, the next time I will write with a case about Sanctions against a lender for producing fraudulent documents.

Continue reading "The Judges Are Getting Ticked Off At Fraudulent Documents" »

Once again the Government fumbles the ball when it comes to Southwest Florida Homeowners.

It started with trying to keep people in their homes with HAMP and HARP. Now, after realizing how poorly planned and executed the programs are, the government is no longer trying to help homeowners stay in their homes. Now, the government is trying to force homeowners out, but not without letting the Banks get their pound of flesh.

Under a government plan announced in November, 2009, but not set to go into effect until April, 2010, homeowners who are able to short sale their house will receive $1500.00, banks and servicers on the other hand will receive at least $2000.00.

It doesn’t seem that the banks are willing to let you have the government’s money in the same easy way that they received it. As reported in the New York Post, Wells Fargo vice president had the following quote, “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way losing my job and moving to another city, and have all the documentation,’ then we’re not going to do a short sale.”

Once again the fix to the housing crisis amounts to little more than a Public Relations attempt to make it look like help is coming for Main Street while Wall Street continues to make big profits.

I will remember that when I vote.

Continue reading "Mortgage Modification in Lee County, Florida " »

Recently, a new bill has been introduced in Florida. The Bill is called: Florida Consumer Protection and Homeowner Credit Rehabilitation Act. This is one of the most Anti Consumer Bills that I can recall.

The Florida Bankers Association presented this bill to Florida legislators. This bill is designed to kill the due process rights of Florida homeowners by changing us from a judicial foreclosure state to a non-judicial foreclosure state.

The act, titled The Florida Consumer Protection and Homeowner Credit Rehabilitation Act, really needs to be read by all 18 million Florida residents. If passed into law, foreclosure lawsuits would be a thing of the past.

Continue reading "Florida Consumer Protection and Homeowner Credit Rehabilitation Act" »

Non-judicial foreclosure is not the answer to the Florida foreclosure problem. The answer to the foreclosure problem is open communication between a lender and a homeowner. The Florida Supreme Court recently addressed a problem that the Florida Governor and the Florida Legislature have been ignoring for several years.

The Florida Supreme Court established a task force to study the foreclosure problem, and the number one problem the task force found was a communication problem. It seems that the foreclosure task force ignored the people dealing with those lenders associated with the Florida Bankers Association. Lenders with the Florida Bankers Association work for months and months with its borrowers.

Continue reading "Non-Judicial Foreclosure Is Ridiculous Part II" »

Thirdly, Mr. Sanchez states that the current judicial process in Florida takes one to two years. Where is the factual basis for this statement? Sure, some foreclosures last a year or two but that is not the result of the homeowner. Usually, it is because the lender cannot prove its case to the Judge. Yes, there are unopposed cases where the lender cannot prove its own case, and the case has to be delayed. How pitiful is that? A lender files a foreclosure action to take someone’s home away, is unopposed in Court, and still cannot prove its case.

Another problem in the Florida Court’s right now is lenders that are cancelling the foreclosure sale because they do not want the property back in their name. So, rather than conduct the foreclosure sale, the attorneys for the lender are instructed to cancel the foreclosure sale, thereby leaving the homeowner as owner of record, and therefore, liable for the taxes and maintenance of the property.

Continue reading "Non-Judicial Foreclosure Is Ridiculous Part III" »

It is ultimately the lenders decision whether to deny a modification. It is the lenders who decide not to allow a principal reduction. It is the lender who decides not to lower the interest rate. It is the lender who shuts off communication with the homeowner. It is the lender who decides at what price a short sale will be allowed.

Mr. Sanchez then switches his argument to investors and flippers, and his argument is vague and ends with a flippant comment. He attempts to bolster his argument by alluding to the amount of homes in foreclosure that were purchased by speculators. Yet his argument fails to gain strength, and in fact becomes fractured.

If his argument is that speculators are not entitled to their day in Court, then, wouldn’t the same hold true for other types of cases. Maybe there are too many small claims cases, in his opinion, or maybe he feels there are too many criminal cases in the Court system. Why do they have to be in Court? My only comment to Mr. Sanchez on this point is that I think investors and flippers are still entitled to their day in Court, and the law in the State of Florida guarantees this proposition.

Continue reading "Non-Judicial Foreclosure Is Ridiculous Part IV" »

Ladies and Gentlemen:

A bill was introduced by Florida Senator, Dave Aronberg, which would make mediation an option in mortgage foreclosure cases where the foreclosure is against a homestead.

Here is the story:

Continue reading "Mediation of Foreclosures One Step Closer" »

Well it's 2010, and I am wondering what the Federal Government is going to do about the failing Home Affordable Modification Program. (HAMP). When the President ran for office, one of his rallying cries was that he was going to help homeowners stay in their homes by modifying mortgages. The Making Homes Affordable Program was supposed to help 7 - 9 million families avoid foreclosure.

Well if you have ever read anything that I have written, you will know that I am deeply disappointed in the results with the President's Making Homes Affordable Program. On the surface, it seemed too good to be true, and you know what they say about things too good to be true: It usually is too good to be true. Kinda like that mortgage we were promised in 2005 and 2006, that we could easily refinance in two years when the property was worth twice what we paid for it. Hmmm, yea that was too good to be true as well.

Continue reading "Home Affordable Modification Program - A Waste Of Time " »

Government officials are telling us that the recession is over, but the foreclosure crisis is still increasing in Florida and nationwide. Realty Trac released its US Foreclosure Market Report for the third quarter of 2009, which shows that foreclosure filings [including auction sales, default notices and bank repossessions] were reported on 937,840 properties in the third quarter - a 5% increase from from the second quarter of 2009. Significantly, this is almost 23% higher than last year at this time. Estimates are coming in that 1 in 136 US homes are experiencing some type of foreclosure issue. This is the highest that this rate has been since the foreclosure crisis began. The rate for Lee County is said to be 1 in 76 homes – and in some areas is significantly higher.

Florida is in the top 10 states for the highest foreclosure rate during this quarter, and is one of the 6 states [Florida, Ohio, Utah, Georgia, Michigan, Colorado and Illinois] which constitute 62% of the nation’s total foreclosure activity. Many reports have Florida at 4th in overall foreclosure activity in the nation. So even if you’re hearing that the recession is over, unfortunately for us, the foreclosure rates are most definitely not!

Posted by Shannon Houk

If you are wondering if your lender has to modify your loan if they took government funds, the long and short answer is NO. At our offices in Ft. Myers, Naples, and Sarasota, Florida, this is one of the questions we get asked most. Unfortunately, there is no legislation today or government guideline which requires any servicer or lender to modify your loan or reduce principal. CNN recently did a story on"> this issue.

Continue reading "Does My Lender Have To Modify My Loan If They Took Money From The Government?" »

The News-Press published a little article on page B-10 this morning about the amount of bank debt among local banks. It appears that some local banks have significant debt problems. The article compared local banks, and their non-accruing real estate debt, from the second quarter of 2008 to the second quarter of 2009. It's not pretty.

Lee County Banks

First Community Bank of Southwest Florida From: $3 mill To: $14.7 mill
Commerce Bank of Southwest Florida From: $1.6 mill To: $12.7 mill
Busey Bank, N.A. From: $ 14 mill To: $ 33.7 mill

Collier County Banks Highlights:

Hillcrest Bank of Florida From: $1.1 mill To: $21.7 mill
Liberty Bank From: $5.5 mill To: $15.5 mill
Bank of Naples From: $2.5 mill To: $7.5 mill
Royal Palm Bank of Florida From: $6.9 mill To: $19.7 mill
Bank of Florida Southwest From: $17.5 mil To: $ 83.7 mill
TIB Bank From: $19.5 mill To: $57.7 mill
Orion Bank From: $106.8 mill To: $210.4 mill
Florida Community Bank From: $102 mill To: $175.4 mill

These numbers are scary in and of themselves. Just imagine the lost revenue for the banks. How do they continue lending when they are not making ends meet themselves? It's not like there are companies beating down their doors to buy these loans at this time?

Even more interesting is the disparity between Lee and Collier Counties. Is it that more loans in Collier County are going into default? Or, are there less loans in Collier County with higher amounts defaulting?

Continue reading "As Bank Debt Grows Modifications Slow !" »

I live in Southwest Florida. I represent people who live in Fort Myers, Lehigh Acres, Cape Coral, Naples, Port Charlotte and Sarasota in Bankruptcy and Foreclosure Defense. Today I read an article that made me sick. The article stated that nearly 1 out of 4 homeowners were under water on their homes. In October of 2008, I wrote a blog for our bankruptcy blog entitled: How many Southwest Florida Residents' Homes are Underwater?

Additionally, I wrote for the Mortgage Law Network about how many homeowners were underwater nationwide.

Continue reading "Fort Myers, Cape Coral and Lehigh Real Estate: Where Are We Going?" »

The Federal Government wants to pay the mortgage companies to help consumers complete Short Sales and Deeds in Lieu of Foreclosure. Recently, the Obama Administration has set more taxpayer money aside to provide an incentive to banks and mortgage companies to help consumers. Call me silly, but didn't the Federal Government pass legislation which asked the banks and mortgage companies to do this over the past several years. I guess when the Federal Government asks you to do something, you don't really have to do it until they pay you to do it.

So now mortgage lenders like Wells Fargo and Bank of Americawill be paid to help consumers. Is anyone else seeing through the bologna here. This is just another stimulus to help the banks and mortgage companies on the backs of the American Consumer (i.e. you and me). Where are the guidelines on these plans? Did the Federal Government just give a blank check to the mortgage companies and banks?

Continue reading "Government Wants To Pay Banks To Do Short Sales and Deeds In Lieu" »

Recently, Carmen Dellutri, a Board Certified Consumer Bankruptcy Attorney, was asked by the News Press to answer some questions about the mortgage modification bill. His answers appear at this link. I will admit that there is no editing and at one time I nearly broke the microphone. I also made a few errors. The Housing bill passed the House on March 5, 2009, not the first. Second, Senator Nelson's first name is Bill, not Tom. Although one could say he looks like a Tom.

I hope this helps.

Continue reading "Carmen Dellutri on News-Press.com about Mortgage Bill" »

The first three months of 2009 in Fort Myers and Cape Coral, Florida seemed pretty normal, if your idea of normal is a horrible economy, excessive foreclosure filings and outrageous jobless numbers. Let's talk about the 24% increase in foreclosures in Lee County. This number will continue to rise until our elected officials do something about it. The housing bill would be a great start if the politicians would stop playing politics with the bill. During this time of crisis, the politicians are still debating the best way to handle this crisis. The House of Representatives passed a bill on March 1, 2209, and our Senators are, well, thinking about it. It seems to me that the housing issue would be important enough for our Senators to push this issue just a little.

Continue reading "Mortgage Foreclosures Up 24% In First Three Months of 2009" »

The President's Housing Bill is about to be destroyed in the Senate. The most important provision is about to be deleted because it is not in the best interests of the banks. Shockingly, the Housing Bill is about to become a spending bill. This housing bill contained a provision which would allow bankruptcy judges to strip down first mortgages on personal residences. Out of all the noise contained with this bill, the one group of individual who should be complaining is the Bankruptcy Judges in Florida, Nevada, California, Ohio, and the other states where foreclosures are through the roof.

Continue reading "Senate Decision To Remove Bankruptcy Modification From Housing Bill Will Kill All Modifications" »

The Dellutri Law Group recently updated the website by adding a mortgage modification video to the website. Actually, it is a commercial that we shot but never ran because we did not need to run the commercial. We are being referred cases from clients, attorneys and people in the industry.

Additionally, there are 5 new bankruptcy videos as well in our media section. Please feel free to review them as well.

The video can be found in the media section of the website. The media section is found on the lower right hand section of the homepage.

Continue reading "Dellutri Law Group Adds Mortgage Foreclosure Defense Video to Website" »

Sarasota, Port Charlotte, Fort Myers, Cape Coral and Naples residents are being misled by the Obama Administration's Homeowners Assistance Program.

“Those that forget history are doomed to repeat it.”- Aristotle

-The government's new program to help homeowners creates an adjustable rate modification that starts with a low interest rate and then raises at the end of the modification period. Didn't adjustable rate mortgages help create this mess.

-Servicers who have constantly told homeowners that they have to be behind on their mortgage before they can help them and then ignore homeowners requests for help for weeks or months, get paid by the government to modify a loan despite the fact that they have not spent any money funding the loans .

Continue reading "Quick Thoughts About The New Homeowners Assistance Program" »

As a Consumer Bankruptcy Attorney in Naples and Fort Myers, I see things happening which make no sense. While reviewing the various articles written about the "new" program announced to help homeowners, I came across the following hypothetical situation in the Wall Street Journal. The hypothetical sets forth the following scenario of how the bill would help the homeowner. If your loan is $225,000 at a 6.5% interest rate, the homeowner's payment would drop about $495, by lowering the interest rate to 2.73%. At the end of a 5 year period, after the lender receives federal subsidies, the principal balance would be $193,000. This sounds like a great deal until you apply the hypothetical to the Lee County housing market.

The problem facing Lee County homeowners is that the $225,000 dollar loan is for a house that is currently worth less and in most cases significantly less. For example if the house were worth $150,000, at the end of the five year period the house would still be worth less than what is owed on the loan, by perhaps as much as $40,000. (Even if housing prices stop their steep decline and start to recover the homeowner is still facing a deficit of about $20,000). Leaving the homeowner still unable to sell their home for what it is worth, while at the same time increasing the interest rate at the expiration of the five year period.

This new program allows the suffering homeowners the right to rent their own home while paying the costs for property taxes and insurance, only to be left with the same predicament of owning a home they cannot sell for what it is worth. Is this really homeowner relief or assistance?

This post was submitted by David Lampley, Esq. attorney for The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Lampley is currently serving as co-chair of the Lee County Foreclosure Relief Task Force. Mr. Lampley also writes for the firm's bankruptcy blog.

President Obama released his plan to help the mortgage foreclosure crises. He calls it a housing plan. At the Dellutri Law Group, our team of consumer attorneys are analyzing this plan. Our initial evaluation is that it will NOT be adequate to help Southwest Florida in any meaningful manner. The News-press is reporting that the plan will help 34,000 residents in Southwest Florida.

The only meaningful modification will be if President Obama signs into law the Helping Families Save Their Homes in Bankruptcy Act 2009. This legislation will allow individuals to not only lower their mortgages, but also, reduce all of their debts.

Continue reading "Obama's Housing Plan Puts Band Aid on Lee County's Broken Arm" »

The citizens of Lee County, Florida and the rest of Southwest Florida whose home values have nose-dived may have relief coming in the near future. The Mortgage Modification provisions contained in "The Helping Families Save Their Homes in Bankruptcy Act" is very likely to be voted on Wednesday of this week. That's right in the next two days. So, it is now more important than ever to notify your members of the House of Representative and the Senate. In Florida, click here for links to your Local Representative. It is important that you write, call or e-mail your local congressman and impress upon him or her the facts of this legislation. For More Information, please contact the author.

Continue reading "Mortgage Modification Bill May Be Voted On This Week" »

The other day I wrote a blog for Mortgage Law Network. The blog discussed how I believed the King Amendment, if attached to the bill and passed into law, would change the dynamics of the bill. Litigation will explode as mortgage servicers and companies attempt to create a scenario of fraud.

Continue reading "Helping Families Save Their Homes in Bankrutpcy Act 2009 and The King Amendment" »