The offer may seem almost too good to be believed for many borrowers, but it is important that you keep your letter if you receive one.  Borrowers who qualify can obtain up to a $150,000 principal reduction on their mortgage.  The offer is part of the $25 billion settlement federal and state agencies reached with the five largest mortgage servicing companies in the U.S over the practice of fraudulent foreclosure document processing.  It is important that you keep the offer letter or you will not be able to participate in this principal reduction program.

Our experienced Boca Raton foreclosure defense attorneys at Eric N. Klein have assisted many Florida homeowners facing the prospect of foreclosure to avoid losing their home.  This new program provides another tool that we may utilize in preventing homeowners from losing their family home.  However, homeowners that receive the letter must meet certain qualifications.  A written response to the letter must be submitted with full income verification and documentation so that the lender can see that you will be able to make the modified mortgage payments under the terms of the mortgage principal write-down.  While you must be employed and have adequate income to afford the modified payment, your current mortgage payment must exceed 25 percent of your monthly income.  If your current income is sufficient for you to afford to make the monthly payment, you will not qualify for this principal reduction.

It is estimated that the average person who qualifies for the program will reduce their monthly payment by as much as 35 percent.  Our team of mortgage foreclosure defense attorneys work diligently to find the best option to help our clients protect their investment and their home.  The experienced foreclosure defense attorneys at our Boca Raton foreclosure defense law firm can evaluate your situation and discuss your options so call us today at 561-353-2800.

Julia Isaccson at the Brookings Institute has just released a new report entitled, “The Ongoing Impact of Foreclosures on Children,” which documents the enormous tool that the loss of the family home in foreclosure can have on minor children.  The report indicates that 2.3 million children who live in single family homes have already lost their home to foreclosure and another 3 million children are at risk of finding themselves homeless because of foreclosure.  There is also an additional 3 million children facing evictions following foreclosure of the rental property where their families are tenants.  In total, there are over eight million kids that have been or are at jeopardy of being directly impacted by the foreclosure crisis.

This study documents the impact on the current generation of children affected by the mortgage meltdown because they are uprooted from the security and stability of their family home, their established school, their neighborhood friends, their extracurricular activities and their extended support network.  The report singles out a handful of states, including Florida, where the foreclosure crisis had impacted the greatest number of children.  Based on real estate data, 12-19 percent of children in the state of Florida have experienced foreclosure of their home, or their family is seriously behind on the mortgage.

The author of the report identifies four separate ways foreclosure may have a direct adverse impact on kids:

Negative Impact of Moving: Parents facing foreclosure or that have had their home sold in a foreclosure sale are more likely to move.  Studies consistently show that children whose parents move frequently perform more poorly in school.

Impact of Stress on Parent-Child Interaction: Studies since the Great Depression reveal that the anxiety and stress caused by financial hardships adversely impact parent-child interactions.  Parents experiencing financial challenges often engage in harsher parenting that is less supportive according to the report.

Detriment to Physical Health: While the emotional and educational effects on children caused by the change and instability associated with foreclosure might be predictable, it is somewhat surprising that there is also a positive correlation between foreclosure and the physical health in kids.  Data shows a higher number of non-elective visits to health care providers in areas with high foreclosure rates.  There is also a higher rate of postponed medical procedures and medications which may be a factor in the higher incidence of medical health issues.

Impact of Urban Blight: Because areas with a high number of foreclosed homes tend to be less desirable, they experience a higher rate of crime, diminished sense of community as well as reduced tax revenue and/or community services.  This tends to promote a less favorable environment for children.

There are a number of ways to reduce the impact of foreclosure on children, including permitting children to have inter-district transfers so that they are not uprooted from their schools and friends.  The best way is to find options that facilitate children staying in their family homes.  Our experienced Florida foreclosure defense attorneys have had a great deal of success protecting those facing the loss of their home to foreclosure.  In some cases, we are even able to negotiate a principle reduction.  The experienced foreclosure defense attorneys at our Boca Raton foreclosure defense law firm can evaluate your situation and discuss your options so call us today at 561-353-2800.

The FHFA will be making a decision within the next few weeks on whether to proceed with mortgage principle reductions.  Obama has dangled significant incentives to entice Fannie Mae and Fannie Mac to agree to principle reductions for homes that are significantly underwater.  Obama has offered the government backed lenders triple the prior incentives offered for principle reductions. Because the Acting Director of FHFA, Edward DeMarco, has resisted Obama’s calls to reduce principle on these underwater mortgages, some Democrats in Congress have called for his resignation.

It has been projected that if the FHFA decides to agree to the mortgage principle reduction, there may be as many as 3 million borrowers with loans through Fannie Mae or Fannie Mac that are impacted.  The net impact on the real estate market and economy is unclear.  While the cost of the mortgage balance reductions would be a significant cost, presumably in the range of tens of millions of dollars, this might be offset somewhat by increased property tax revenue from homes that are not lost in foreclosure.

While it is unclear whether this program will be approved, there are a variety of options that are available for homeowners facing pending foreclosure.  At the Eric N. Klein and Associates, we understand the enormous stress and anxiety that accompanies being behind on your mortgage.  While the pressure can be so overwhelming that it is incapacitating, our dedicated legal team has helped many people facing pending foreclosure save their family homes.  The experienced foreclosure defense attorneys at our Boca Raton foreclosure defense law firm can evaluate your situation and discuss your options so call us today at 561-353-2800.

The Wells Fargo case involving a homeowner in Georgia provides an informative example of how this potential defense to a Florida foreclosure action may arise.  The homeowner fell behind on her mortgage but with interest, recurring fees, and charges, there was disagreement on the amount past due on the mortgage.  The homeowner believed she was approximately four payment behind but the lender thought she was a staggering 113 payments behind.  Because the loan had been transferred several times, the homeowner was repeatedly given conflicting information about what was owed and to whom over a seven-year period.

This homeowner almost did what many do in this situation, she was ready to simply walk away and give up.  Her foreclosure defense attorney encouraged her to continue fighting the foreclosure.  The bank could not provide the loan documents or complete payment history establishing the amount owed and to whom it was owed.  There may be many millions of loans that are in foreclosure or that will be in foreclosure in the future that are based on faulty accounting principals and improper practices by mortgage companies that originated or acquired the mortgage.

If you are facing foreclosure proceedings or are falling behind on your mortgage, it is important to seek the guidance and expertise of an experienced mortgage foreclosure attorney so contact Eric Klein & Associates, P.A. at 561-353-2800 to discuss your options today.

RealtyTrac has provided data that looks promising on the surface and reveals that foreclosure filings reached a four-year low in March.  This represents a 4 percent decline from February and a 17 percent decline from the same time last year.  Unfortunately, industry experts are predicting that this data is misleading, and the situation is likely to decline further rather than improve.

Although experts indicate that filings have declined, these represent homeowners fairly far along in the foreclosure process, including either public default notices, scheduled foreclosure sales, and bank repossessions.  Many foreclosure and real estate experts believe this slowdown is the result of banks biding their time while the federal government and many state attorneys general took action regarding allegations of abuses in the foreclosure process.  It is presumed that banks will begin moving forward again on foreclosure proceedings now that a $25 billion settlement has been reached.

This dark cloud hanging over current favorable data is reinforced by evidence that the number of instances of initiating the foreclosure process with an initial notice of default actually rose 7 percent.  According to those at RealtyTrac, Florida is a state that may be hit particularly hard when banks are again proceeding with foreclosures.  One in every 123 housing units in Florida is subject to a foreclosure filing.

If you are delinquent on your mortgage or struggling to make your mortgage payments, our experienced foreclosure defense attorneys may be able to help you obtain a reduction in your interest rate or in some cases even principle.  While it may be tempting to wait because your lender is not taking action, this may merely be “the calm before the storm.”  We may be able to help you work out a solution before banks are once again moving full speed through the foreclosure process.  Our Boca Raton foreclosure defense attorneys can evaluate your situation and discuss your options so call us today at 561-353-2800.

While these foreclosure avoidance tools can be effective ways to prevent bankruptcy or foreclosure, you must be careful about engaging in either arrangement without sound legal advice.  There are a number of issues that can arise that should be discussed with an experienced Boca Raton foreclosure defense attorney before initiating either a short sale or deed in lieu:

Tax Implications: The IRS can treat forgiveness of a debt as “income” to a debtor.  It is important to have an attorney advise you regarding this issue, or you may be hit with a huge tax bill after completing a short sale or deed in lieu transaction.  Tax obligations do not generally qualify as a debt subject to discharge in bankruptcy so an IRS or state tax bill based on either of these strategies must be carefully evaluated.

Deficiency Judgement: While one purpose of a short sale or deed in lieu is to avoid a deficiency judgement, state law will not necessarily prevent the bank from initiating legal action to obtain the difference between the value of the home and the amount owed on the mortgage.  An experienced foreclosure defense attorney can draft a contract that precludes the mortgage company from pursuing and deficiency.

Other Lien Holders: It is important to understand that an arrangement for a short sale or deed in lieu made with the mortgage company that holds the first may not be binding on other lien holders like a bank that holds the second mortgage.  In such situations, your foreclosure defense attorney may have to structure an agreement that includes other lien holders.  Sometimes a bankruptcy attorney can seek to strip the second mortgage or other lien (other than the first) if there is less equity in the home than the amount of the first mortgage.

While any of these strategies can help you avoid the negative impact of a foreclosure sale, they can create serious problems if not done correctly.  If you are facing foreclosure proceedings or are falling behind on your mortgage, it is important to seek the guidance and expertise of an experienced mortgage foreclosure attorney so contact Eric Klein & Associates, P.A. at 561-353-2800 to discuss your options today.

360,000 foreclosure cases are backlogged, and one of the main reasons for this delay is because the state of Florida requires a judge’s approval.

Representative Kathleen C. Passidomo said, “We have a lot of property that needs to get back in the stream of commerce and borrowers who need to get on with their lives.”

The bill passed through the final House committee and it is now headed to the House floor.  The same process is occurring in the Senate.

If you are struggling to make monthly payments on your mortgage and are at risk of foreclosure, contact Florida foreclosure defense attorneys of Eric N Klein & Associates, P.A. by calling 561-353-2800.

On Saturday at the Beverly Hilton in Los Angeles, Whitney Houston was found dead in her hotel suite. Police have not revealed the cause of death. Houston was scheduled to be at a pre-Grammy party later that night.

At 12pm this Saturday, the funeral will be held at New Hope Baptist Church in Newark, New Jersey. The service is private, and will have only 1500 people on the guest list. The ceremony will be televised and will also stream live on the internet.

For more details, visit CNN.com

Florida Attorney General Pam Bondi stated, “This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally…This agreement holds banks accountable and puts in place new protections for homeowners in the form of strict mortgage servicing standards.”

The agreement is outlined that “Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction and other debt relief.”

If you are afraid of losing your home, contact Boca Raton foreclosure defense attorneys of Eric N Klein & Associates, P.A. by calling 561-353-2800.

The most anticipated football of the year will kickoff this Sunday at Lucas Oil Stadium in Indianapolis.  The Giants and the Patriots will face one another only four years after their last Super Bowl standoff.  In 2008, the Giants took home the prize and we will see if they can do it again.

The Patriots have a 15-3 record this season, and the Giants are 12-7.  The Giants have had an exciting past few games defeating the top seeded Green Bay Packers and the second seeded San Francisco 49ers.

Turn on your TV at 6:30pm EST on Sunday to watch the big game.  Madonna will perform during the Half Time show.  For more details, visit NFL.com