Don't go it alone
Melbourne, Florida (PRWEB) October 13, 2011
The Current Climate of Foreclosures in Brevard County, Florida is astonishing. According to RealtyTrac, a real estate statistical company, there were 170 new foreclosures filed in Palm Bay, Florida and 122 new foreclosures filed in Melbourne, Florida in August. This represents .19% of the homes in Melbourne, Florida were entered into the foreclosure process in the month of August and .45% of the homes were entered into the foreclosure process in Palm Bay, Florida.
Although these percentages are dramatically high, they are significantly less than when they peaked in September 2010 with 532 of the homes in Palm Bay were entered into the foreclosure process and 286 in Melbourne, Florida . Additionally, Brevard County Clerk of Court records, on average, show the foreclosure process, that is, from falling behind on the payment to repossession by the bank is taking one and a half years.
In the past, foreclosure proceedings were fast and expeditious. However, with the foreclosure climate and quantity of foreclosures being filed, it has necessitate new laws, procedures and programs to prevent a total collapse of the housing market.
According to Brevard County foreclosure attorney, Maurice Arcadier from Arcadier and Associates, P.A., in January 2010, the Supreme Court of Florida passed a procedural law that requires all residential loans that are in foreclosure to go through mandatory mediation. Mediation is a process where the note holder and the owner of the property can discuss alternatives to a foreclosure. Such alternatives include refinancing, doing a deed in lieu of foreclosure, and a short sale.
Refinancing often requires the owner to have good enough credit and to show an ability to pay back the loan under the new refinancing terms. Additionally, the Making Homes Affordable Program (HAMP) provides a government subsidy where a qualifying debtor may refinance at a reduced interest rate and the government secures the loan.
A deed in lieu is an agreement between the debtor and the bank or note holder where the owner agrees to surrender the property and the bank agrees not to pursue an excess judgment against the borrower. An excess judgment is the difference between what the foreclosed home sold and what the bank is owed, including late fees, interests and attorney fees. It is not uncommon for an owner to owe hundreds of thousands of dollars after a foreclosure process. Oftentimes, for these homeowners, availing themselves of bankruptcy protections under Chapter 7 or Chapter 13 are good alternatives.
A short sale is an agreement between the owner and a bank that if the owner sells the home for market value, the bank agrees to waive collection proceedings for an excess judgment against the owner.
In addition to an agreement with the bank, owners in a foreclosure proceeding may have many legal defenses to the foreclosure such as requiring the bank to show the original executed mortgage and closing documents, and showing of fraud of misrepresentations by loan officers, developers and or appraisers. A lot of times such defenses will give landowners additional time to sort their finances and enter into better bargaining positions with the banks.
With all the programs and legal defenses that are available, and the complexities associated with foreclosure and bankruptcy options, it is very important for consumers and debtors to consult with an experienced attorney to discuss their particular facts and the options available. Arcadier and Associates represents hundreds of foreclosure and bankruptcy clients in Melbourne, Florida, Brevard County, and surrounding areas. Don't go it alone, says attorney Arcadier, "you could be missing asserting your legal rights." The typical foreclosure defense case costs about $1,500.00 in attorney fees to defend, says Arcadier.