Why Florida’s Foreclosure Machine Is Slowing Down


Why Florida’s Foreclosure Machine Is Slowing Down

At the George E. Edgecomb Courthouse in Tampa, Judge Sandra Taylor presides over one of the special courts set up to help work through Florida’s backlog of foreclosure cases. Sitting at a desk in a fifth-floor conference room, with a court assistant and a cart stacked with manila envelopes at her side, Taylor uses a speakerphone to talk to attorneys for the banks and mortgage servicers who call in rather than appear in person. Most borrowers don’t show up to contest the loss of their homes.

One day in early October, Taylor had 51 cases on her docket. It took her about 30 seconds to approve some of the actions and set a sale date after lenders’ attorneys summarized the case and the amount owed. "I wish there was more we can do," Taylor told one homeowner who did appear. She said there was "no legal reason" why she shouldn’t approve the foreclosure on the home.

Another homeowner, Ingrid Young, 44, told Taylor she couldn’t afford the $1,900 monthly payment for her Tampa house because she earns only $1,800 a month. "I am in default, and I do realize that," she said. Taylor approved the foreclosure after persuading attorneys for CitiMortgage, a unit of Citigroup (C), to set the sale date in January, after the holidays. "It’s a very sad business," the judge said during a break.

The Short Sale Alternative


The Short Sale Alternative

When newlyweds Justin and Rebecca Rakitin starting shopping for their first home in the Fort Lauderdale, Fla., area last year they assumed the process would be quick and easy, with a $8,000 first-time buyer tax credit at their disposal and ‘For Sale’ signs littering every block.

In fact, most of the listings in the Rakitins’ price range were either foreclosures or short sales, where sellers were asking for less than they owed on their mortgage. After seeing some "really nasty" foreclosures, says Ms. Rakitin, age 27, the couple decided to stick with short sales.

In November 2009 they found what they wanted–a three-bedroom, two-story townhome that sold for about $300,000 in 2007, listed for half the price. Worried that other buyers would pounce, they offered $165,000. The sellers quickly accepted.

Then the waiting game began.

After Foreclosure Problems, Homeowners’ Eyes Move to Title Insurance

After Foreclosure, a Focus on Title Insurance

When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.

This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gauntlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.

Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.

Robo-signing controversy could derail nation’s entire foreclosure process

What began as scattered accusations of shoddy paperwork and fudged documents is mushrooming into a full-blown crisis threatening to derail the foreclosure process across the country.

Bank of America on Friday became the first big bank to temporarily halt foreclosures in all 50 states while it reviews hundreds of thousands of cases for potential paperwork errors.

For Florida, which has been slower than many states in attacking its foreclosure backlog, any delay threatens to not only clog courts further but also makes it harder for the overall market to reach any sort of price stability. Wary buyers will remain on the sidelines until they know the value of what they intend to purchase won’t collapse.

via Robo-signing controversy could derail nation’s entire foreclosure process – St. Petersburg Times.

Wells Fargo to aid Pick-a-Pay mortgage borrowers

Wells Fargo to aid Pick-a-Pay mortgage borrowers

Wells Fargo agreed to provide about $67 million in mortgage relief to up to 700 New Jersey homeowners who have so-called Pick-a-Pay adjustable-rate mortgages, New Jersey Attorney General Paula T. Dow said today.

The loans, also known as Pick-a-Payment mortgages, allowed the borrower to choose monthly mortgage payments that did not cover the interest due and, thus, caused the principal to go up, ultimately triggering a larger payment that many borrowers could not afford.

The agreement also requires Wells Fargo to pay a $3.98 million fine to settle the allegations that subsidiaries of Wachovia Corp., which it bought amid the financial chaos of 2008, failed to warn borrowers that choosing the smallest possible payment could lead to a debt treadmill.

Mortgage Terminator: Condo associations sue banks, claim intentional foreclosure delays – South Florida Sun-Sentinel.com

Mortgage Terminator: Condo associations sue banks, claim intentional foreclosure delays

After winning a lawsuit against Wells Fargo that claimed the bank purposely delayed foreclosure proceedings on a condominium unit for more than a year, a Pompano Beach condo association has been awarded title to the unit without owing a dime on the original $184,400 mortgage.

The case, brought by the Palm Aire Gardens Condominium Association, is being seen as a precedent that could pave the way for other condo associations facing similar foreclosure delays.

“Banks are delaying foreclosures and abusing the process and our association is struggling financially because of it, that’s why we filed our lawsuit.” said Palm Aire Gardens President Oscar Garcia. “Now we own the property free and clear of the mortgage, which gives us options to sell it or rent it.”