Foreign Investors Are Procuring More Loans

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Foreigners are helping the economy by purchasing properties in the U.S. with loans provided by American banks.

Lenders are granting non-U.S. resident’s better access to credit in order to finance investment properties or vacation homes. This is being done through a foreign-national mortgage without them ever having to step in the U.S. This loan services for people abroad requires that they put at least 40 percent down on a property. These international investors are assisting close the gap left by the American people. The domestic investors are no longer biting because most of the foreclosure inventory is no longer appetizing, and the middle-class borrowers cannot afford it due to stagnant income growth.

One lender that is based in Orlando, Florida has had a 65 percent increase in foreign buyers compared with 2013. Many foreign buyers are now buying 4 properties on loans instead of 2 properties cash. Banks are requesting that non U.S. residents put a down payment of 30 to 40 percent of the purchase prices. Residents are only required to 20 percent, which is why banks are lending more to foreigners. Cash buyers have been at the lowest, 33 percent since September 2008, therefore providing loans to nonresidents who have at least six months of cash reserves with a 30 percent down payment and usually only a two percent increase in their conventional loans.

The U.S. credit and tax system works very differently than the rest of the worlds. This causes some difficulty when it comes to lending to foreigner only because they banks are forced to rely on documentation from accounts and employers, along with third parties. A mass amount of nonresidents purchasing properties with loans do it to establish a credit in America. Although they many have millions in their bank, if they have no credit, it is still not an easy path for them to obtain a loan.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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New-Home Sales Include New Incentives

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Builders are trying different tactics to lure buyers into purchasing new homes even after the federal government lowered FHA loans.

As the real estate market has begun to cool down, many builders are throwing incentives to prospective buyers to see who will bite. Some are including pools or built-in barbecues while others are agreeing to cover up to $10,000 in closing costs or subsidize mortgage rates. From Sacramento, California to Orlando, Florida builders are doing their best to entice buyers by providing more freebies for new-homes.

Throughout the country, new-home sales have been spotty, plummeting in June before making its come back in July and August. After investors pushed properties prices up and the FHA limit was lowered, builders are having a hard time selling new homes, even with the incentives. There are some contractors who are refusing to give any stimulus for home buyers, standing by the fact that a new home is alluring enough.

The federal government cut the FHA loan size of 652 major U.S. counties this January to attract private capital back. Many of the counties where the FHA loan was lowered were cut below the median price of new-home values, making harder for new-homes to be sold and many buyers to purchase. However; existing home sales did increase because of the same FHA cuts.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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As Investors Retreat, Home Values Stall

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Investors have moved on and the housing market is suffering the consequences.

The increase in home prices has begun to slow down due to less interest from investors. In a seasonally adjusted basis, during the month of June, property prices only rose 0.1 percent, according to the Federal Housing Finance Agency as opposed to the estimated 0.5 percent that was predicted by data gathered by Bloomberg. After helping to drive prices up, investors are now pulling back due to a decrease in foreclosures and other homes at reduced prices.

Cash purchases dropped to 23 percent in August. The usual percentage is around 33 percent stated the National Association of Realtors. Investors tallied close to 12 percent of, the smallest amount since the end of 2009. Because prices have begun to escalate, the investors aren’t interested any more. They are looking to buy properties at low prices and sell them for a profit. Sales for pre-owned homes have also dropped by 1.8 percent for August reported the Realtors group.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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Valueless Junior Liens are Allowed to be Stripped Away from Debtors

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The court giving debtors a hand after they complete their Chapter 13 bankruptcy payments.

During the recession property values were so high and obtaining credit was almost as simple as getting something out of a vending machine that many owners took out two and even three mortgages. However, when the market crashed and the surplus ended many were left swimming upstream without a paddle. With such a large amount of debt hanging over their heads, an abundance of people were and continue to seek after financial freedom via bankruptcy.

To the surprise of many, the courts have thrown debtors an unconventional bone. They are allowing valueless liens to be stripped away from the homesteads of the debtors after the completion of their Chapter 13 payments. It is being called a Chapter 20 by the bankruptcy bar because it has all of the effect of a Chapter 13 but with the addition of the lien-stripping from a Chapter 7. Lenders are less than pleased about it, especially since they are losing the bargaining of secured claims on the homestead.

This upside for the lenders is that the debtors is most likely to remain in the property and will continue to maintain the property on behalf of the bank whilst they figure out their next step. For the debtor this is a win- win situation. They continue to reside on the property and after they have completed their Chapter 13 payments, all their valueless junior liens will be removed. This includes second and third mortgages.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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Florida’s Legal Aid Societies are in Grave Danger

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Legal Aid Groups have had to do severe cut backs due to financial depletion.

Florida’s legal aid societies are slowing crumbling.  This society is in place to assist the poor in battling foreclosures and evictions and collecting government benefits. However, the legal aid societies are in peril. Due to financial cuts from the state, local governments, and the Florida Bar Foundation the organization might not be allowed to remain open for much longer.

There have been lawyers furloughed, as well as pay cuts, in order to allow the program to run for a while longer.  It all started once the Federal Reserve lowered the interest rates to nearly nothing. This was a devastation hit since the interests were being used to fund the legal aid groups. Once this happened, the groups had to start tapping on their reserve funds.

Some law groups are better equip to deal with the extreme budget cuts because they are receiving Federal Grants, such as the offices in Pinellas, Pasco, and Hillsborough County. While others have had to let go of several attorneys and staff member to accommodate the budget cut. Broward and Collier counties have been one of those groups who’ve had to make drastic cuts and had to disband its housing unit, with the exception of pro-bono cases and foreclosures.

In the U.S. there are three states that do not receive money from its state to fund these legal groups and Florida is one of them. Some of the more populated states such as New York or Texas received at least $40 million for its legal groups.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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Developmental Program For Accelerated Substitute to Foreclosure

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A new program is being tested to expedite foreclosures that are being held back by bankruptcies.

The U.S. bankruptcy trustees have initiated a developmental program that could drastically quicken the sale process of home by Fannie Mae, Freddie Mac and other major lenders. Instead of allowing properties to sit on the sidelines while the bankruptcy process plays out, the program would cut years off the sale of said properties and received compensation from sold properties to repay unsecured lenders.

The concept is to keep the property is bankruptcy court and to sell it from there. The state court would take weeks instead of months to short sale a property and compensate unsecure lenders. During the recession, when most mortgages were well underwater and the home values hit rock bottom, borrowers began looking for a new start and financial freedom which caused bankruptcy filings to grow rapidly.

Many of the bankruptcies, especially personal Chapter 7 bankruptcies, are filed the day before the bank forecloses on the property. This is a strategic move that prevents the bank or plaintiff from reclaiming the property while the legal process unfolds. The tactic is costing lenders, who are already dealing with missing loan payments, even more money because their attorneys now have to file for a relief of the bankruptcy automatic stay in order to keep the ball rolling and move the case to state court so they can complete the foreclosure.

Lawyers have created a new business due to the increase of foreclosures. They are looking to delay the foreclosure process on behalf of the borrower for as long as possible and then file for bankruptcy once that deferment is inevitable. The program would put a stop to this by preventing the homeowner from staying in the property for years or the second owner from collecting the rent without providing payments to their lender for the mortgage.

One attorney stated that this is an idea that should have been implemented years ago as it would assist the economy is Florida by providing more real estate to a hungry market. By clearing up all title issue, resolve them of all liens and tax liabilities, the properties would be able to be put up for short sale a lot faster. In the end the trustees are looking to attain the most amount of money possible for the unsecured lenders.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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Foreclosures in Miami are Reducing

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Foreclosures in Miami are still higher than the rest of the country but they are steadily decreasing.

Miami’s foreclosure rate has fallen by 5.9 percent in July.  This has been its lowest point since the crash of the housing market.  Unfortunately, Miami, which also includes Miami Beach and Kendall, are still among the highest in the country.  The number of outstanding mortgages averages at about 1.7 percent in the county, while in Miami it is almost 3 times that percentage.  This is all according a CoreLogic, an Irvine, California data based firm.

During July 2013 the foreclosure rate in Miami, which indicates the number of properties whose mortgages are going through some process of foreclosure, was 11 percent.  Earlier in the year 5.5 percent of mortgages were past due nationwide, and as of July only 4.3 percent are delinquent in the Country.  However, in July of this year the rate of mortgages that were past due for 90 days or more in Miami went down to about 12 percent from the previous 17.4 percent at the beginning of the year.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

 

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Housing Boost for Broward County

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Broward County is maintaining a steady increase in real estate.

Home sales have continued to rise in the past couple of month nationwide. In Broward County it is no different. Those who are attempting to sell their properties are finding that there are a lot more self-assured buyers with the now steading housing market. The interdependence between buyers and sellers will unravel the economical housing options in Broward.

Close to 94 percent of single family homes put up for sale received their asking price on July 2014, assuring that the buyers believe that the prices of their new properties will at the very least hold their value. The number of days that a property stays on the market also had an effect on the house market itself. Luckily, the average a property is on the market has been about a month, or 37 days to be more exact. This is a sign that the market is in a healthy place and it should encourage current homeowners to put their property up for sale and for buyers to purchase.

Americans have demanded that more sensible and safer mortgages be provided to steer away from the financial catastrophe that we all experience a few years ago.  Because of those demands, we are now seeing the continuous rise of properties being sold and the prices maintaining themselves as well. Homes that were under distressing situations, such as foreclosures, only make up about 9 percent of the homes sold though out the country, while a year ago they were made up of about 15 percent.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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Criminal Charges for Fraudulent Couple Who Filed Bankruptcy

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Hiding assets in bankruptcy court will cause for your bankruptcy to be discharged and you will face criminal charges.

Although bankruptcy is an uncomfortable process to go through, has given many people a fresh at finances. One of the key points in being given financial freedom is that you must be completely honest during the bankruptcy process.  One couple in Palm Beach is now facing criminal charges for trying to conceal valuable goods from bankruptcy court. In 2008 the couple tried to snuff out $2.9 million in a Chapter 7 case but only claimed $13,000 in assets.

However, when the courts did their investigation a two carat gold wedding ring, platinum hoop earrings with diamonds, a silver bangle, a Swiss army watch, and high-end silverware set among other things were not divulged in their documents. Once the court found out of their fraudulent activity their bankruptcy was discharged and they were charged with a fine of $250,000 and up to five years in prison.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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Bank of America Pays Florida $1 Billion in Settlement

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Nearly 17,000 Floridians will see some kind of relief from Bank of America due to its record-breaking settlement.

The Florida Attorney General’s Office declared that Bank of America will be providing a billion dollars for relief to approximately 17,000 Floridians over a settlement for mortgage security fraud. $16.65 billion was paid by Bank of America Corp to finalize the investigation for sale of harmful mortgage securities by federal, Florida and other states during the housing bubble. The homeowners and communities that were the most affected during the Recession will be assisted with $7 billion while the other $9.65 billion will be is fines.

Besides this being the largest settlement in history, they Attorney General also described it as going beyond the cost of doing business.  The Attorney General’s spokesperson stated that all the particulars of how much and who will be receiving the assistance is still being worked out. Loan modifications, principal reduction and forgiveness, and new loans to borrowers with worthwhile credit will be part of the relief given to consumers. Communities that are still recuperation from the recession will received donations and other will be provided with rental housing that can be affordably financed.

Of the $7 billion settlement, a seventh will be given to Florida to help homeowners and communities who were the most affected during the financial crisis. The majority of the toxic loans were done by the firms Merrill Lynch & Co and Countywide Financial Corp. These firms were attained by Bank of America in 2008.

If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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