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September 7 - 13, 2010

Foreclosuree Ratess continuee too Rise Is the Making Home Affordable Program helping? BY DANIA S. FERNANDEZ, ESQ., Attorneyy att Law w

According to RealTrac, Inc., Florida has the 3rd highest foreclosure rate with one out of every 57 proper ties receiving a foreclosure filing. The states with the highest foreclosure rates in the first quarter of this year were Nevada, Arizona, Florida and California, ReatlyTrac, Inc. reported. According to CNN, to date approximately 240,000 homeowners have received a loan modification through the Making Home Affordable Program. This is not enough. 1. Why isn’t the Making Home Affordable Program providing relief? There are several problems with the process underlying the Making Home Affordable program. • Banks do not have sufficient staffing to process the amount of applications. • Banks are not mandated to provide a loan modifications to the homeowner. • Banks many times do not have the final say. • Banks are hesitant to provide loan modifications to financially risky homeowners. • Bank processing errors, etc. 2. Will the foreclosure lawsuit be stopped while the Bank processes my loan modification? Unfortunately, no it will not. This is the frustrating part. Lenders are faced with problems, as the ones mentioned above, and as a result take forever to process a loan modification. Even though, the homeowner has submitted their application and may be under a review status with the Lender, the lender will proceed to place the homeowner in foreclosure. Once a homeowner is in a foreclosure status, the Lender’s attorney will begin a foreclosure proceeding against the homeowner. On the average, a loan modification will be provided to a homeowner between 6 months to one year. This delay

is due to the Lenders problems, yet Lenders continue to foreclose against homeowners. My favorite excuse is when a lender denies a homeowner a loan modification because the homeowner is too upside down on his/her home, and he/she has not made a payment in over one year. However, it was the lender that took one year to process the loan modification to begin with. There is a lot that just does not make sense. 3. Is there anything an attorney can do to speed up the loan modification process? Yes, if you are in foreclosure already, mediation can be requested. Mediation is when the lender, their attorney, the homeowner, their attorney and a mediator are present on a designated day to come to a resolution. In my view, mediation is the quickest way to reach a loan modification. Mediation should be planned and prepared appropriately. I do advise to go with an attorney. Your attorney should thoroughly review all the required paperwork including financials/loss and profit before attending. If your financials do not reach the requirements to qualify for a modification, then mediation is not an option. First and foremost there must be some form of income. All this should be reviewed and discussed before attending mediation. If mediation is not option, then the constant follow up via telephone or email is crucial. Foreclosure, Loan Modification, Bankruptcy, Short sale are not easy to deal with. There are so many people that are falling apart financially, emotionally and physically as a result of the stress that comes along with it. Do not hesitate to call or email me. I have been an attorney for over 10 years and of those ten years always in real estate. My initial consultation is free. I am here to help. We can guide and help you with all Real Estate and Bankruptcy matters. Dania S. Fernandez, Esq. 10205 South Dixie Highway, Ste. 204 Pinecrest, FL 33156 CAll today 305-254-4492 or reach me via email at dania@fap-law.com

South Miami News 9.7.2010  

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South Miami News 9.7.2010  

Newspapers PDF

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