Posts tagged "Florida"

It has been the first foreclosure case that the Florida Supreme Court has heard since the Florida Housing bubble burst, but this case could potentially have a tremendous impact on future foreclosure litigation across Florida.

As more and more people have lost their real estate to foreclosure, there has been an outcry about fraudulent bank filings. When it is discovered that a bank has cut corners to get a foreclosure case into court sooner, the bank can withdraw its suit, correct its fraudulent paperwork and filings and resubmit their case under Florida law. The lawsuit that the Supreme Court is currently considering is whether it is acceptable for banks or other fraudulent plaintiffs to use the law to refile because their unethical practices were discovered.

In previous posts we have discussed the state of Florida's use of judicial foreclosures. Under this procedure, foreclosures go through the court system. Currently in the state, all foreclosures in the state go through this. As a result, the duration of foreclosures is longer than nearly all others and there is a large backlog waiting to be attended to. A RealtyTrac report from November 2011 indicated it takes an average of 749 days for the foreclosure process to be completed.

Florida is one of 20 that only use the judicial foreclosure process. Many other states throughout the nation utilize the nonjudicial process. The process removes the need for a judge to sign off on the foreclosure and is generally a much faster and cheaper process. In addition, because the duration is shorter, homes are quickly put back on the market rather than sitting empty and unattended. This may in turn help the economy.

Florida homeowners are no strangers to the foreclosure process. The state, after all, suffers from one of the highest foreclosure rates in the nation.

Now, former football star and central figure in what was once dubbed the trial of the century, O.J. Simpson is also suffering through the foreclosure process. Of course, Simpson isn't being kicked out of his home; he's already in jail, where he is serving a nine- to 33-year prison sentence for his role in a 2007 armed confrontation with sports memorabilia dealers in Las Vegas.

Most people recognized that house flippers played a role in the fall of Florida's real estate fall. Few, however realized just how big a role it actually played. A report recently released by the Federal Reserve Bank of New York provides clarity on the matter.

The study, which relies on credit and loan information that had not been disclosed in the past, indicates that in more than 30 percent of the homebuyers in Florida in 2007, had at least two mortgages. This is compared to the number in 1999, 16 percent.

As we have written about in the past, throughout Florida and the entire country, in the last few years a rash of illegal actions were taken while foreclosing on properties. After being exposed, banks have been forced to redefine the proper steps and try to make up for the foreclosure missteps.

So far, nationwide, close to 1.3 million homeowners have been informed that a free review is available for their foreclosure case. And this is just the beginning. An additional 3 million homeowners will likely receive the same message before the end of December.

The foreclosure problem is still a serious one in Florida, according to a recent story on FloridaToday.com. According to the story, about a fourth of all mortgage loans in Florida are either delinquent or in foreclosure. This is particularly bad news for a Florida housing market that is still struggling to recover from the national housing crisis.

Housing prices in Florida have fallen dramatically since the height of the real estate boom in 2006. If more foreclosures hit the Florida housing market, the value of condominiums and single-family homes will only fall again. This is because buyers won't spend $700,000 on a Florida home if they can instead spend $400,000 to buy a similar foreclosed property just a block away.

As we have discussed in previous posts, homeowners throughout the state of Florida have faced and are facing foreclosure on their homes. While many assume foreclosure only affects those who are underemployed or unemployed, sometimes those considered to be rich and famous face the same fate. Actor, comedian and star of "Rush Hour," Chris Tucker is one of those people.

The 39-year-old entertainer is facing foreclosure on a home he owns located in Central Florida. He reportedly bought the $6 million Bella Collina home in 2007. In addition to five bedrooms and a pool, the home situated on Lake Apopka, boasts a spa and pirate ship themed basement.

Throughout Florida and the entire country many people seeking to purchase a home have utilized mortgages backed by the Federal Housing Administration. This type of mortgage, characterized by down payments of 3.5 percent and interest rates that are low, is especially popular with those seeking to purchase a home for the first time. It is however, available to all provided the buyer meets certain requirements. In contrast to FHA-backed mortgages, interest rates are higher with conventional rate mortgages and down payments are of 20 percent are required.

The number of people able to use FHA-backed mortgages nationally will likely drop due to a change that went into effect this past October 1. As of that date, new Federal Housing Administration loan limits were implemented that lowered the loan ceiling. The concern with some in the real estate business is that this change will negatively impact the already battered real estate market in South Florida.

The hit the Florida real estate market sustained has had far reaching. One area affected has been a rise in real estate commissions for agents who are still selling property. While many real estate agents left the profession when the market tanked, those who have stuck it out are starting to see a reward. According to a publishing and consulting company called Real Trends, by the end of 2010, the average commission nationally was up to 5.40 percent. This is compared to a national average of 5.04 percent in 2005.

With the housing boom in the early part of the last decade, for an agent to obtain a real estate listing it was often necessary to lower the commission to less than the standard 6 percent. For a median-priced house in Broward County, 6 percent translates to $11,600. Divided evenly between the agents the commission is generally paid by the person selling the house.