Florida leads the states with the largest number of REOs, bank repossessions, in October 2014 according to RealtyTrac. Maryland, however, has taken the lead in the highest foreclose rates of the nation. There were 4,905 properties repossessed by banks in Florida, 2,000 less than that in California, Ohio came in third with 2,057, Illinois with 1,620, Maryland with 1,602 and four more states with more than 1,000 REO’s in October.
In a few days the Supreme Court will make a determination of whether homeowners who have filed bankruptcy are eligible to nullify a second mortgage assuming that the property’s market value is lower than the amount owned on the first mortgage. Bank of America appealed twice to the Supreme Court proclaiming that the second loans should not be “stripped off” when a homeowner files bankruptcy even though the primary loan is well underwater.
A Palm Beach County woman had her bank account frozen for nearly three years until a Broward County circuit judge ordered Bank of America to unfreeze it and BB&T to refrain from the pursuit of collecting fund from her account. Amy Kodsi’s Bank of America account had $720,000 when it was frozen by creditors who filed a court judgment due to her husband, who racked up $4 million worth of debt during the market crash.
A new report states that although the number of abandoned foreclosed homes has been decreasing locally, Florida continues to surpass the rest of the country. By the end of the third quarter, the commonly named ‘zombie” homes in Palm Beach County are up to 2,749 which is around 35 perfect down from last year, stated RealtyTrac Firm. Broward County was down 19 percent from last year at 3,437 abandoned homes.
The First District Court of Appeal has thrown out evidence presented in three foreclosure cases due to the lenders’ witnesses being unqualified to testify. In two of the cases, the court stated that the lawsuits should be dismissed in favor of the homeowners. The banks have 30 days to file a motion for rehearing or the decisions will become active throughout the state.