Pending mortgage foreclosure case backlog down 75% from peak in Florida – What does this mean to you?

One of the many problems caused by the national mortgage foreclosure crisis from the last decade was the explosion in the number of foreclosure filings in Florida state courts. According to statistics published in a recent article on the Florida Courts (www.flcourts.org) website, the number of foreclosure filings rose to around 400,000 cases at the height of the crisis, as compared to the normal average of 70,000 or so in an average year.

This jump in filings caused a backlog that topped 300,000 cases in June of 2013. That is why virtually all foreclosure cases over the last 5 to 6 years have experienced many months and even years of delays working their way through our state court system. As of September of 2015, that back log amount has been reduced below 80,000 cases.

To read the entire article go to: http://www.flcourts.org/administration-funding/court-funding-budget/mortgage-foreclosure.stml

What does this mean to you if you are facing foreclosure right now? It means that your lender is most likely going to push harder and faster to try and seize your property, and get you removed from the premises. Gone are the days when you could stay in your property for years while the courts tried to figure out what to do with you. In addition, much of the leniency that was afforded to struggling home owners 5, 6 and 7 years ago has gone away.

You need to contact an attorney who specializes in defending your rights before it is too late. Many of the banks and other loan servicers have made it clear that they want your mortgage payments on time, and in full, or they will push for foreclosure in short order. They are also much tighter on granting mortgage modifications than they were back then, as well.

Before your lender takes your home, you need to talk with attorneys who are knowledgeable about keeping your home out of foreclosure. Korte & Wortman, P.A. will fight for your rights against any bank, loan servicer or their attorneys. The earlier you get us involved in your defense, the better chance we have of helping you keep your home.

Contact us at Korte & Wortman now. Check out our website to see our results: working with our clients to help them stave off foreclosure and save their homes by getting them the mortgage modifications and/or foreclosure defense they need. Check out a few of our many success stories on our website at http://foreclosurefactor.com/results/loan-modification-results/.

Effect of rise in interest rates on home owners in West Palm Beach and throughout Florida?

The US Federal Reserve in Washington DC on a beautiful summer day

Yesterday, December 16, 2015, the Federal Reserve (the Fed) announced it was raising interest rates by 25 basis points. This means that it is increasing the target for short term interest rates to a range of 0.25% to 0.50% from a range of 0% to 0.25%. The move was particularly noteworthy because it marked the first time in 9½ years (since June of 2006) that the Fed has raised interest rates.

Most of the big banks, including Citibank, Wells Fargo and JPMorgan Chase followed the Fed’s move by increasing their prime lending rates from 3.25% to 3.5%, effective today. The rest are expected to follow suit shortly. The question for all of us consumers out there is: how will this affect my wallet/purse/bank account?

Although the answer to that question varies depending upon your personal situation, the general answer to the effect of this one ¼% rise is “Not much, for most of us, in the immediate future.”

The more important question for home owners in West Palm Beach, Ft. Lauderdale, Miami, Tampa, St. Petersburg, Clearwater or anywhere else in the state of Florida: is this a one-time event, or a change in policy by the Fed that signals more interest rate hikes ahead in 2016. Some economists, journalists and forecasters are predicting that this is just the beginning of a series of tightening moves by the Fed. If that is the case, then the effect, particularly here in Florida, will be significant.

Why? Because as we saw in 2008 through 2010 and even into 2011 and 2012, our local economy is particularly sensitive to what is happening in the real estate market. The economic crisis which was largely brought on by the collapse of the housing market hit Florida harder than almost every other state in America.

Only in the last two years or so have we seen our housing market finally bounce back (house prices went up 8.7% in Florida last year, the 3^rd fastest growth rate amongst states, according to an article on businessinsider.com). A significant rise in interest rates could cause the housing market to slow, which will most likely cause our local economy to slow or even go in reverse again. To read the entire article ranking the economies of all 50 states and Washington D.C. please go to: http://www.businessinsider.com/state-economy-ranking-july-2015-2015-7

That is the most important question to people who are involved in the real estate market here in Florida; particularly those of you who are already in a precarious position with your current mortgage or home equity loan. Sustained increases in interest rates could push you over the edge toward foreclosure.

Before that happens, you need to talk with a law firm knowledgeable about getting your loans modified today. Or, you may need to explore your rights in foreclosure defense. If you need help with any type of problems you have with your mortgage or any other home loan, contact us at Korte & Wortman, P.A. now.

Korte & Wortman is a law firm specializing in all aspects of foreclosure including bankruptcy, mortgage debt, short sales, loan modification, predatory lending practices and Dodd-Frank Act violation litigation. We have had excellent results working with a number of clients to help them stave off foreclosure and save their homes by getting them the mortgage modifications and/or foreclosure defense they need. Check out a few of our many success stories on our website at http://foreclosurefactor.com/results/loan-modification-results/.

Our home office is based in West Palm Beach, at 2041 Vista Parkway, Suite 102. You can call us at (561) 544-7071, stop in to our office, email us at vdinapoli@kwlawfirm.com or come to our website. Our firm represents clients throughout the state of Florida and across the eastern seaboard. We also have offices in Sunrise and Clearwater, Florida.

Study shows credit card debt in south Florida / West Palm Beach area among highest % in the country

A recent study conducted by consumer watchdog website CreditCards.com reported that residents of south Florida, from Miami north through West Palm Beach carry the 4th largest credit card debt burden in the country. On average each south Floridian carries an average of $4,325 in credit card debt according to the study. Furthermore, it would take the average person over a year to pay off that debt if they started paying it off now and stopped using their credit cards until they were fully paid off.

That average credit card debt burden of $4,325 equals over 15.7% of the median individual income in our area, which is $27,453 according to published statistics from the U.S. Department of Justice. Median household income is $47,463 according to the latest Census survey in 2014. What do all of these facts and figures mean to you as a resident here in West Palm Beach?

In an article published by Kenny Malone on the WLRN website regarding the study, he quoted CreditCards.com senior industry analyst Matt Shulz who said “It certainly seems that Miami residents are putting a little bit more than they can afford on their cards. You know, as evidenced by the fact that we see that it would take the average person in Miami about 14 months and about $350 in interest to pay off their credit card debt… That’s a long time and a lot of money.”

To read this entire article please go to: http://wlrn.org/post/study-south-florida-fourth-worst-credit-card-debt-burden-country

The South Florida Business Journal also highlighted a study from the credit agency Equifax that although south Florida has seen a significant dip overall in consumer debt over the last year, that in fact “In the auto, bank credit card, and retail card category, South Floridians incurred 11 percent more debt in the 12 months leading up to March 31 (2015).” http://www.bizjournals.com/southflorida/news/2015/05/05/south-florida-has-greatest-dip-in-consumer-debt.html

If you are in West Palm Beach, Ft. Lauderdale, Miami, Tampa, St. Petersburg, Clearwater or anywhere else in the state of Florida and in need of a law firm knowledgeable about credit card debt issues, then contact us at Korte & Wortman, P.A. Korte & Wortman is a law firm specializing in credit card debt defense and defending our clients in all aspects of consumer debt issues including bankruptcy, mortgage debt, foreclosure, Deed in Lieu and short sales. We have had excellent results working with a number of clients to save them tens and even hundreds of thousands of dollars on their credit card debt, mortgage modifications, Dodd-Frank Act cases and other consumer loan issues. Check out a few of our many success stories on our website at http://foreclosurefactor.com/practice-areas/credit-cards/

Our home office is based in West Palm Beach, at 2041 Vista Parkway, Suite 102. You can call us at (561) 544-7071, stop in to our office, email us at vdinapoli@kwlawfirm.com or come to our website. Our firm represents clients throughout the state of Florida and across the eastern seaboard. We also have offices in Sunrise and Clearwater, Florida.

Dodd-Frank Act – a primer from Korte & Wortman, P.A.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (known by the common term of the Dodd-Frank Act) has had a profound effect on lending practices here in Florida, particularly since the Mortgage Reform and Anti-Predatory Lending Act section (Title XIV) was enacted early in 2014. This groundbreaking piece of legislation is meant “to assure that consumers are offered and receive residential mortgage loans on terms that reasonably reflect their ability to repay the loans and that are understandable, and not unfair, deceptive or abusive,” according to its creators.

Part of this legislation’s mission is to amend both the Truth-in-Lending Act (“TILA”) and the Real Estate Settlement Procedures Act (“RESPA”). The Dodd-Frank Act requires that a lender in a residential owner-financed transaction must determine at the time credit is extended that the buyer/borrower has a “reasonable” ability to repay the loan. If the lender did not properly investigate your credit worthiness, your lender could be subject to fines and other penalties.

Therefore, if you have entered into a mortgage contract since the beginning of 2014 and are now facing foreclosure, bankruptcy, or some other form of financial distress that is threatening your property, then you need to seek out a knowledgeable defense lawyer to discuss all of the legal options you have available to you.

In addition, you may be entitled to refunds or other financial benefits if your loan did not disclose many different pieces of information to you, including deficiencies in the home like Chinese drywall; hidden penalties for prepayment of your mortgage; or other information that may have altered the value of the home.

At Korte & Wortman, P.A. we have attorneys who are well-versed in the Dodd-Frank Act mortgage reform legislation that was enacted in 2014. We have already been able to help clients navigate this legislation to get the money they deserve from lenders who have tried to take advantage of them in the form of fees, hidden charges and other predatory lending practices.

Our South Florida firm is one of the few in the state that handles cases involving legislation in the new Mortgage Reform and Anti-Predatory Lending Act.

To learn more about the Dodd-Frank Act please visit this page on our website at http://foreclosurefactor.com/the-dodd-frank-act/ or call us directly at (561) 544-7071 for foreclosure prevention or defense against any lender who may have violated your rights under the rules of the Mortgage Reform and Anti-Predatory Lending Act throughout the State of Florida. We can help you TODAY!

Real world effects of Dodd Frank Act on lending over the last five years

In response to the approximately 8 million homes that fell into foreclosure during the financial crisis in 2008 through 2010, the Dodd Frank Act was made into law by Congress in 2010. With it Dodd Frank brought numerous rules that were meant to safeguard consumers – and the economy in general – against a variety of “predatory” lenders and unfair lending practices.

The 5-year anniversary of the enacting of this historic financial reform legislation was recently passed. As a result several of the biggest financial news outlets including CNBC marked the occasion by looking at the effects that the Dodd Frank Act has had on financial reform in its first 5 years of existence. CNBC Real Estate Reporter Diana Olick published an article looking at both the good and bad effects that Dodd Frank has had on the United States (and Florida) housing market.

Olick’s (and many other experts in the financial industry’s) conclusion? Dodd Frank has made it significantly tougher to get a mortgage or any other type of loan instrument, particularly if you do not have the financial means or history to prove your credit worthiness. In addition, the cost to lenders has risen significantly, and on several levels, due to the extra time and effort that must be put into the additional paperwork, background checks and other compliance stipulations required by the law.

According to a recent study by the Mortgage Bankers Association cited by Olick, lenders are taking longer to process loan applications, and are able to process only about 20% of the number of applications per month today as compared to 2005. Olick concluded, “The home loans being made today are arguably the most pristine in history. New default rates are at record lows. All that, however, comes at a cost to lenders, borrowers and the overall health of the housing market itself.”

To read Diane Olick’s entire article, please go to: http://www.cnbc.com/2015/07/16/how-dodd-frank-changed-housing-for-good-and-bad.html

A perfect example of every law meant to fix a situation has both good and unintended consequences. On the bright side, the rampant predatory lending issues from 10 years ago have been curbed to a significant degree, a clear sign that the law is having positive effects, as well.

The Foreclosure and Bankruptcy Defense Attorneys at Korte & Wortman, P.A. have the knowledge and information to help you to utilize the Dodd-Frank Act if you feel that you have been exploited by a predatory lender. If you are in West Palm Beach, Ft. Lauderdale, Clearwater or anywhere else in the state of Florida and in need of a law firm knowledgeable about the Dodd-Frank Act, then contact us at Korte & Wortman, P.A. Korte & Wortman, P.A. is a law firm specializing in all aspects of real estate law, including the Dodd-Frank Act.

In addition to using this blog as a helpful resource, please contact us directly if you have any questions or current legal issues that might related to predatory lending, foreclosure, bankruptcy or credit issues. Our main office is based in West Palm Beach, at 2041 Vista Parkway, Suite 102. We also have offices in Sunrise and Clearwater, Florida.

You can call us at (561) 544-7071, stop in to our office, email us at vdinapoli@kwlawfirm.com or come to our website at http://www.foreclosurefactor.com. Our firm represents clients throughout the state of Florida and across the eastern seaboard. We also have offices in Sunrise and Clearwater, Florida.

We look forward to helping you get the legal advice that you need in all predatory lending, foreclosure, bankruptcy and credit card situations.