Foreclosure Filings Down for Third Straight Month

October marked the third month of decline in foreclosure filings. A total of 332,292 new filings were made in the month of October, a 3% drop from September. However, October’s tally for 2009 is still 19% higher than October 2008, and with a recent increase in unemployment, with the nationwide unemployment reaching 10%, it appears that the 3 month slide may only be temporary.

In addition, a large part of the decrease can be attributed to the way the Banks and Courts are approaching the foreclosure process. The Courts realize that, with the number of foreclosures at an all time high, something must be done to ease the burden on the court system. Several different factors are behind the recent decrease in new filings.

First, the White House’s initiative to create an incentive for more loan modifications, or the “Obama Plan”, as it is often referred, has begun to have slightly more success than at the outset. Initially, the Obama Plan had underwhelming results, with only a few thousand homeowners out of hundreds of thousands of applicants actually realizing any relief. Now, the Banks are more likely to help the homeowners achieve loan modifications. However, this often acts as a short-term salve, and in Florida in particular, where over half of the homeowners who signed loan modifications have re-defaulted on their modified loans, the loan modifications have not had the success they were expected to have.

In addition, more jurisdictions are requiring that the Banks and homeowners go into mediation at the outset in an attempt to resolve the debt dispute. Mediations are an excellent method to have the parties sit face-to-face in an attempt to work out the issues, but far too often, mediations end in an impasse, as the Bank representatives use mediations as an attempt to obtain the borrower’s financial information for a loan modification, and many homeowners require a better resolution than a loan modification to save their home.

In short, while there may be a short-term decline in new filings, the current foreclosure climate will stick around for the next few years, at the least, especially considering the recent increase in unemployment. Hopefully, new legislation will be passed to provide greater relief to homeowners in distress, but in the meantime, The Ticktin Law Group will continue to defend Florida homeowners against the banks and their predatory lending practices, so that we may help them keep their homes!

READ the AP Press Article from November 12, 2009.

No One is Safe From Foreclosure

When foreclosure strikes it is one of the most devastating and disruptive events in a family's life. It turns out no one is safe from foreclosure. Toni Braxton, a Grammy winning singer, has reportedly defaulted on her mortgage with Bank of America for her home located in Century City, Los Angeles. Unlike Ms. Braxton, most American families do not own several properties. Nor does the average American family own a multi-million dollar home. However, many Americans, especially in Florida, are now dealing with the home foreclosure process.

What happens during a foreclosure is not merely the displacement of a homeowner and their family from their home. Debilitating economic stress, divorce and family strife and major health concerns have sprung out of this foreclosure crisis. A foreclosure inevitably destroys the homeowner's credit rating, thereby the foreclosure process not only displaces the homeowner from their home, but effectively prohibits the homeowner from purchasing a new home in the near future. It may take two to three years or longer before a homeowner would be considered for a new home loan after a foreclosure strikes.

Furthermore, the financial and economic stress of foreclosure has a negative impact on marriage. The already high divorce rate has inevitably increased due to the foreclosure crisis. A home in foreclosure leads to unique concerns in a divorce. Florida is an equitable distribution state and normally the marital assets are divided as close to 50/50 as possible, unless factors exist to distribute the marital assets unevenly. Normally, a home is the largest marital asset. However, in foreclosure, the property is most likely worth less than what is owed, in other words the property is "upside down" or "underwater." Divorcing couples are forced to make difficult decisions regarding the property. The couple may be able to short sale the property, or one party may try to stay and live in the home.

That same stress that causes marital strife has serious medical ramifications, primarily for those already in bad health. An American family dealing with a catastrophic illness must deal with the emotional and financial stress of the disease itself. On top of this nearly intolerable burden, a family in foreclosure must also face the risk of losing their home.

Considering the devastating effects of foreclosure and the massive amount of Americans that are affected, one would imagine that the government and the lenders would provide better relief. Unfortunately we cannot wait for a bailout from the government or assistance from the lenders. This is why The Ticktin Law Group, P.A., is proudly fighting back against foreclosure and the negative impact it has on our lives, our families and our health.

New York Bankruptcy Court Wipes Out Mortgage

On October 9, 2009, a federal bankruptcy court in the Southern District of New York ruled that a servicer, PHH Mortgage, could not prove its claim to the debt owed on a home in White Plains, New York. Instead, Judge Robert D. Drain wiped out the entire $461,263 mortgage debt on the property.

We all know the story too well. A homeowner falls behind in her mortgage payments. The bank sues to foreclose. And without an attorney, the bank wins and the homeowner has to move out.

Not this time. Initially the homeowner hired a bankruptcy lawyer in an attempt to modify her loan with PHH. After months of getting nowhere fast with that, her lawyer asked for proof from PHH that they had the right to sue his client. PHH wrote a letter in response saying that it was the servicer of the loan, but that the holder of the note was U.S. Bank. So her lawyer asked for proof that U.S. Bank was the actual holder. He got an affidavit from the vice president for PHH, saying that PHH was the servicer for the note held by US Bank. This same vice president also signed the assignment of this mortgage to the Mortgage Electronic Registration System, better known as M.E.R.S. This document also showed that the note was assigned to M.E.R.S. was signed well past the filing of the action. That means PHH sued on behalf of U.S. Bank before it had any claim to the property by the assignment.

PHH's attorney even admitted at the hearing that, “In the secondary market, there are many cases where assignment of mortgages, assignment of notes, don’t happen at the time they should. It was standard operating procedure for many years.” In rejecting the argument, Judge Drain responded, saying “I think that I have a more than 50 percent doubt that if the debtor paid this claim, it would be paying the wrong person. That’s the problem. And that’s because the claimant has not shown an assignment of a mortgage.”

These are the arguments the Ticktin Law Group has been making against the banks, lenders, and servicers. While this ruling may be in New York, and not in Florida, the banks and their servicers employ these same tactics here in Florida in many foreclosure cases, and left unchallenged, they get away with it. The Ticktin Law Group is proudly taking action to put a stop to this.

For more on the above story, check out:
http://fedupusa.org/2009/10/25/if-lenders-say-%e2%80%98the-dog-ate-your-mortgage%e2%80%99/

MODIFICATIONS NOT ALWAYS WHAT THEY SEEM

We have been telling our Florida foreclosure clients and prospective clients to be wary of modification plans they might be offered from the bank. We have seen some modifications that take the amount that the borrower is in arrears (the delinquent amount), and simply tack it on to the remaining payments. This is not a modification that would actually help the borrower – what the borrower really needs is likely a reduction in the rate of interest and the amount of principle owing. More and more people are requiring of some sort of assistance in this regard, and it is questionable if the banks are following through.

When people come to The Ticktin Law Group because of an impending foreclosure, or because they have foreclosure questions (the timeline for foreclosure, how foreclosure works), the lawyers at The Ticktin Law Group give an honest assessment of their situation.

Often, a borrower visits our Florida law firm because they were working with the bank on a modification, but the bank continued with the home foreclosure process. Sometimes, the prospective client even tells us that they were asked by the bank to send their financial information multiple times as the bank seemed to lose their documentation.

When dealing with the bank, even if you think that the foreclosure process has been stopped (because “someone at the bank told you that”), you still need to make sure that your rights are protected. Oftentimes, the bank and its lawyers do not communicate properly, and an otherwise unsuspecting borrower who thinks the bank is working with him, unknowingly finds himself wrapped up in the foreclosure process.

A person having questions about how foreclosures work should see an attorney at The Ticktin Law Group to make sure that their rights are secure.

The Ticktin Law Group Adds Two Attorneys

The Ticktin Law Group is pleased to announce the hiring of two attorneys for our Deerfield Beach office, Jim Robertson and Heather Aquafresca.

Jim Robertson graduated cum laude in 2003 with a Bachelor of Arts in U.S. history from Central Washington University. After graduation, Jim moved to Florida where he attended graduate school at the University of Florida earning his master's degree in U.S. diplomatic history. He then went on to attend law school at the University of Florida and was admitted to The Florida Bar in 2008.

During law school, Jim worked as a legal research assistant in the areas of Florida and Federal historic preservation law. The following summer, he accepted an internship with the U.S. Food and Drug Administration's office of compliance at the Center for Drug Evaluation and Research. Before joining The Ticktin Law Group in 2009, Jim lived in Washington, D.C. and worked on high-volume document review and regulatory research projects. Jim works in our Deerfield Beach office and practices mortgage foreclosure defense as well as general civil litigation.

Heather Aquafresca was raised in Massachusetts, where she attended Massachusetts College of Liberal Arts on a full academic scholarship. Heather graduated magna cum laude with her B.A. in psychology. While in college, she formed the pre-law society, served as a student senator as well as class president, and was a member of the Psi Chi, Phi Delta, and Alpha Lambda Delta honors fraternities. She attained her B.A. in three years with the distinction of All College Honors.

After completing her undergraduate degree, Heather attended Florida Coastal School of Law on an academic scholarship. During law school, she was a member of the Phi Delta Phi honors fraternity and the Center for Strategic Public Policy. She was also an active member in the Moot Court Honor Board. Heather graduated in the top 14% of her class and received scholastic awards for receiving the highest grades in her Family Law, Appellate Advocacy, Torts II, Criminal Procedure, and Professional Responsibility courses. While in law school, Heather also served as a Teacher's Assistant for Legal Writing, Research, and Negotiation.

Heather was admitted to The Massachusetts Bar and The Florida Bar in 2008. She has experience in personal injury law, real estate transactions, and criminal defense. Heather joined our Deerfield Beach office in September 2009 and her primary area of practice is mortgage foreclosure defense.

The Wave of Foreclosures Affects both Homeowners and Homeowners' Best Friend

Not only are families the victims of the Bank foreclosures, but the family pet also becomes one too. A recent news article in the New York Daily News highlights the effects that foreclosures have on pets of foreclosure victims. Without a home to go to, families are forced to make difficult decisions, and often cannot continue to afford the cost of pet care. Even when they can afford pet care, many landlords do not accept pets, so families and individuals are forced to give up their beloved pet.

According to the article, the ASPCA estimates that this has affected up to 1 million pets. Numerous charities and events, including those in Florida, have been set up to attempt to have these pets adopted, but the number of adoptions is far less than the number of pets that have been affected.

Unfortunately, this article is just another reminder of the devastating effects of foreclosure, and how important it is to keep fighting to keep families in their homes.

Read the article: CLICK HERE

Megan Carraher, Esq.
The Ticktin Law Group, P.A.

Florida Loan Modifications are not necessarily the answer

Modifications are not necessarily the answer

Many lenders, the media and even the President preach about loan modifications being the answer to the foreclosure crisis our country is currently experiencing. In theory this sounds like a good plan, but in actuality many of these so-called modifications fail and ultimately result in the borrower facing foreclosure nonetheless.

Read South Florida Business Journal Article

Some lenders are conscious of this problem and have started reducing principal and lowering interest rates, but until we see these reductions on a large scale, many experts believe we will see more and more borrowers continue to default. These are some of the factors that must be considered to see any form of a long-term recovery if our nation is going to rebound from the economic crisis we are experiencing.

Tim Quinones, Esq.

The Ticktin Law Group, P.A.