Foreclosure News

Foreclosure Rate is Slowing in Fla.

Published: Friday, 11 September 2015
Written by Allison Slusher

Florida consistently heads the U.S. in foreclosures; however, that rate is steadily dropping. Lenders finalized 97,740 foreclosures during the year in July in Florida, which is close to 25,000 less than last year. Florida still accounts for 1/5 of foreclosures throughout the nation in the last year.

The fraction of mortgaged properties in any sort of foreclosure stage was at 2.6% in July, third to NY and NJ. That fraction is lowered from 4.7% from last year, however it continues to be over 2x the rate in the nation. Throughout the U.S., finalized foreclosures have lowered by 24%, and the percentage has lowered by 28% , which is its lowest since Dec. 09.

"Job market and price of property increases allow foreclosure rates to fall” says an economist. “Property prices gained 7% from previous years, creating equity for property owners.” 6% of Florida mortgages are at least 90 days delinquent, making Florida the 3rd highest in the U.S. That rate is, however, down 9% from the previous year. The national average is 3.5%.

New Laws Involving Evicting Tenants after a Foreclosure

Published: Friday, 11 September 2015
Written by Allison Slusher

All lenders need to be made aware of the new law in Florida, which needs lenders to give tenants at least 30 days to leave their dwelling following a foreclosure sale.  Florida Law “§ 83.561”, named “Termination of Rental Agreement Upon Foreclosure”, came into effect on July first of 2015.  This law takes over an expired fed. law named “Protecting Tenants at Foreclosure Act”. The existence of this Florida law will not be surprising to lenders. Lenders should know their rights before evicting current tenants following a foreclosure.

“The Protecting Tenants at Foreclosure Act”, or “PTFA”, a law created in ’09, needed lenders to take foreclosed dwellings with current leasers and allowed tenants to a ninety day knowledge before they were legally evicted.  That statute was then elongated because of the “Dodd-Frank Act”, which ceased December 31, ’14.  With no further prolongation of the statute, every state was responsible with making their own personal law instead.   Within 6 mths, Florida remade its own ideal of “PTFA”.

With the new law, the lender has the title, with knowledge of the interest of the current renter in regards to the law.  The law ensures that the renter doesn’t have any accountability of the current leases, provided the lender doesn’t change the agreement.  Most buyers would want to evict the renter before they would keep the current lease. 

Before an eviction, the buyer must give a thirty day letter of termination of the lease to the renter. This letter needs to be delivered expressly by mail or delivering a copy at the property. The renter can stay on the premises for thirty days after the delivery of the termination letter.  

Florida Appeals Court Changes Foreclosure of Reverse Mortgage by Changing “Borrower” to Include Living Spouse

Published: Tuesday, 08 September 2015
Written by Allison Slusher

Reverse mortgages are gaining increased popularity for loans in Florida. To foreclose reverse mortgages, lenders should prove that all conditions needed to move the loan forward have happened. A usual happening is that the borrower is previously passed, and the home isn’t the main home of the surviving partner. More recently,the Court of appeals changed the meaning of a “borrower” to also mean a spouse who didn’t sign.

In the case of “Smith v. Reverse Mortgage Solutions, Inc.”, Mr. Smith had a note that created a “reverse mortgage”. His wife didn’t sign the note, however she did sign the mortgage. When Mr. Smith passed away, the lender began foreclosure action, and stated that the necessary conditions to lead to foreclosure were met. Mainly, the lender stated that Mr. Smith was the sole borrower, so, when he passed away, the home wasn’t the home of the borrower. The Court agreed, and stayed in favor of the lender.

When appealed, the Florida Court deemed that Mr. Smith’s wife would also be considered a  “borrower” as defined in the mortgage, and also in law. The Court of Appeals maintained that, even though the mortgage showed Mr. Smith as the borrower, the mortgage also showed that both were borrowers. 

The Appeals Court also called to Florida’s “constitutional homestead exemption”, which ensures that an interest is acknowledged only if it was signed by a property owner and their s/o. The Appeals Court maintained that in the “homestead exemption”, the security is only recognized if both are considered “borrowers.”

The mortgage was insured by the “Department of Housing and Urban Development”, and was “governed by 12 U.S.C. § 1715z-20”. Under this law, Department of Housing and Urban Development are not required to insure reverse mortgages if it doesn’t provide that a homeowner’s necessity to fulfill the debt owed is put off until after the owner’s death. The exception also gives meaning to “homeowner” making it also include the owner’s spouse. Because the mortgage was insured by Department of Housing and Urban Development, the Appeals Court stated that the mortgage should be consistent with the law that regulated the mortgage. Because the law’s security against the displacing elderly owners would not effect if the lender forecloses while the owners spouse still lives on said property, the Appeals Court stated that the definition of “borrower” in relation to the mortgage will be  changed to also extend to a surviving partner.

 

Foreclosure Rates Falling Fast in South Florida

Published: Tuesday, 08 September 2015
Written by Allison Slusher

The rate of foreclosures in the counties of Broward and Miami-Dade were lowered in June, which is consistent with years past, when the market began to increase beginning in 2012. Foreclosed homes in Miami-Dade county decreased to 3.5% at the end of June, decreased from 3.71% in May and 6.29 percent in mid 2014, says a property analyst report. The rate of foreclosures fell to 3.2 % in Broward County in the middle of this year, decreased from 3.4% in May and 5.9% in mid 2014, according to the report. The housing market in south Florida was hurt badly throughout the recession, and county-wide foreclosure rates continue to be larger than in the whole of Florida (2.7%) and the U.S. (1.3%).