Florida Mortgage Modification Lawyer Blog

Recently, the Florida Attorney General began investigating several law firms handling large numbers foreclosure cases which have been described as “foreclosure mills” for filing fraudulent documents with the court.

Unfortunately, investigation hit a bit of a snag on October 4, 2010; hopefully it will just be temporary. In a hearing on a motion to quash a subpoena against one of the firms, the judge ruled the Florida Attorney General’s subpoena was overbroad and unduly burdensome.

Normally, that issue can be resolved by fine-tuning the subpoena more narrowly and then building upon what you discover later. However, the judge went further and called into question the Florida Attorney General’s constitutional authority to even investigate law firms as they are regulated by the Florida Supreme Court and the Florida Bar.

Continue reading "Investigation Into Foreclosure Mills Hits A Snag" »

Southwest Florida Courts are cramming more time into the day in order to speed cases along the rocket docket. A quick look at the schedule for just one judge on February 3, 2010 reveals that it will be the longest day of the year, never mind the summer solstice. Currently there are 100 non-jury trials set for 15 minute hearings starting at 8:30 am. Additionally starting at 1:00pm there are an additional 99 non-jury trials set for 15 minute hearings.

Continue reading "Lee County Florida Judge Crams Fifty Hours Of Non-Jury Trials Into One Day" »

A recent prediction is that mortgage foreclosures will continue to rise in 2011. It is estimated that 1.2 million homes will be foreclosed upon. That is quite a few homes after several years of outrageous numbers of homes in foreclosure already. It makes you wonder:

Why hasn't Congress done anything to Stop Foreclosures?
Why haven't the States done anything to protect it's citizens?
Why haven't more homeowners fought to save their homes in foreclosure?

The biggest concern for me is: The whole mortgage modification disaster could be solved very simply by allowing homeowners to cram down their first mortgages on their homesteads.

Yes, more people would have to file for bankruptcy, but so what, we would be saving homes, clearing up debt problems and putting everyone, including this Country back onto the road to recovery.

There are some things in life that I will never understand.

Continue reading "Foreclosures Are Expected To Rise in 2011" »

Are you a homeowner in Fort Myers who has lost a job or lost some of your household income? Have you been unable to make your mortgage payment this month? If so, you may be facing the very difficult decision that so many homeowners in Florida are facing: should I keep this home? At Dellutri Law Group, we are seeing homeowners coming in the doors daily agonizing over this decision.

Trying to decide whether to try to keep a home through modification when you owe 2-3 times its value is a very personal one; and in order to make the best decision for yourself and your family, it’s important to consider many different factors:

- Recent studies are showing that foreclosures are on the rise again, and a report on Dow Jones newswire shows analysts predicting that home prices will continue to decline again this year. “Home prices are expected to decline again with risk of another 50% down to get house prices back to levels of 1999 / 2000”, says Richard Henry Suttmeier on Forbes.com. This is a very startling and scary prediction, but if it comes true, this could very well mean additional declines in home prices in Lee County in the near future.

Continue reading "Should I Keep My Home Or Surrender It?" »

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 " »

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 " »

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?" »

New numbers are coming out on foreclosures in the United States. They are not good. More than 13% of homeowners are either behind on their payments or are in foreclosure. Florida is taking a real beating in this economy. Almost 12% of all Florida home loans were in foreclosure, and there are countless more that are late on their payments.

Florida, California, Nevada and Arizona still are leading the way in foreclosures. 44% of all foreclosures are happening in these 4 states. That is shocking. What are their state governments doing about the situation? What is the Federal Government doing about the situation?

Continue reading "13% Of Homeowners Are Delinquent" »

Many people in Fort Myers, Lehigh Acres, Cape Coral, Naples, Port Charlotte, and Sarasota are finding themselves making one of the hardest decisions of their lives. Whether they should keep their current home, which may have between $50,000 to $100,000 in negative equity, or should they surrender their homes and rent for a year or two. There are many considerations which need to be resolved before making this decision.

Continue reading "Renting a Home in Fort Myers, Cape Coral, Lehigh and Surrounding Communities " »

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" »

Foreclosure rates in Southwest Florida are much higher in the last twelve months compared to the year before. It seems Fort Myers, Cape Coral and Lehigh Acres cannot catch a break. Average median home prices are way down and the number of delinquencies (people who are behind, but not yet in foreclosure) is going up, up, up. I'm sure this has something to do with our unemployment rate.

From April 2008 to March 31, 2009 over 45,000 foreclosures were filed in Lee Countyhttp://www.mortgagelawnetwork.com/more-homeowners-are-underwater-on-their-mortgages/, Florida. For the time frame April 2007 to March 31, 2008 approximately 20,500 foreclosures were filed. This is a dramatic increase. But, what is more concerning is the significant rise in the number of delinquencies.

Continue reading "Foreclosure Rates on the Rise in Fort Myers and Cape Coral" »

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" »

Yesterday, the Senate voted No to a measure that would have allowed Bankruptcy Judges to modify first mortgages on homesteads in Bankruptcy Court. This was a very important measure for Florida residents, especially in towns like Cape Coral, Lehigh Acres and Fort Myers. The question that no-one seems to want to answer is this: Until these jokers in Washington finally decide to do something, how many more homes will be lost to foreclosure? Where was the President? Where was the White House? How come there was no pressure being applied from the Executive Branch?

That is the problem right now. People are losing their homes because the big money didn't want the legislation passed. JP Morgan Chase & Co., Bank of America and Wells Fargo took a combined $95 billion dollars from the taxpayers. Although I cannot say for sure, I just wonder how much of that money was spent lobbying the Senators who voted against this measure. Senator Dick Durbin said the fight is not over, and the measure will be introduced at some time in the future.

Continue reading "Senate Defeats Bankruptcy Cramdown 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" »

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.