President Obama signed the Helping Families Save Their Homes Act today.  It’s also good to know when the program expires – 2011.  I get asked that question all of the time.

Here is the White House information sheet on this and the new Fraud Enforcement and Recovery Act, which applies to fraud investigations of loans.  Of course, this law will come a little too late for some, but we’ll see.

The House of Representatives and Senate both passed the Helping Families Save Their Homes Act.  I’ll post a link to the actually passed bill when I find it.

Today, President Obama announced the next steps he would like the Federal Government to take to deal with the foreclosure crisis.  These steps are aimed at those not covered by the first offering, which has still not passed the Congress.

“The latest Obama proposal will provide incentives to lenders and borrowers to pursue short sales and property transfers in lieu of foreclosure. Lenders also would get incentives for modifying loans.”

The article also features another interesting tidbit: since Obama announced his first plan, only 55,000 offers to modify loans have been sent to Broward County homeowners.  That’s amazing to me when 1 in 78 homes in this county is subject to a mortgage that is not paid to date.

When not busy saving dead bodies from public view, the Florida legislature helped the foreclosure process tremendously this past session.  And when I say help, I don’t mean help homeowners, I mean help the banks take your house!  Look at the damage in Palm Beach County:

“Each year, the county receives about $8 million from the Florida Finance Housing Corp. to help provide affordable housing here. But lawmakers in Tallahassee have slashed most that money during this year’s legislative session.”

The program received around $800,000.00 in funding from the Legislature this year.

Anyone could have seen this coming.  From March to April, the number of new foreclosure filings skyrocketed throughout South Florida.

“Foreclosure filings soared in Miami-Dade by 111 percent between March and April, according to RealtyTrac, a private foreclosure tracking firm. Broward foreclosures surged 124 percent between March and April. Compared to April 2008, foreclosures were up around 90 percent in both counties.”

The interesting thing in the Miami Herald article is that there is only a cursory reference to the big bank moratorium which ended in March.  The April to May numbers will be much more interesting in my opinion.

There’s not too much to say here.  I just find these cases beyond interesting.  If you don’t, just move along.

The response to the foreclosure crisis has come in many forms.  One example, the patchwork of local rules that have come into being.  The Florida Bar has come up with a comprehensive list of such rules.  This is very important for attorneys and litigants alike.

Please note that Broward County, has one Administrative Order and, in my opinion, calls for something already required by relevant statutes and case law.

As you may know, the Florida Supreme Court is the only entity in Florida actively engaged in dealing with the crush of foreclosure lawsuits.  Of course, they see it as a crisis of structure to deal with the cases, but their ideas are worthwhile.  Anyway, they committee the Supreme Court formed issued their interim report.  You can view it here.  No formal recommendations yet, but I recommend everyone who is involved in the process, fill out a survey.  When the final report is issued, I’ll have more to say.

The Palm Beach Post report today that a Circuit Court Judge has claimed TWO properties he owned as his homestead.  Of course, typically, you can only have ONE property claimed as homestead.  A nemesis of the Judge has apparently filed a complaint with the Florida Bar over the issue.  For most of my readers, that’s immaterial.  The interesting upshot is this:

“(Property Appraiser Representative Pat) Poston said the issue is slightly complicated because Colin’s house in Atlantis is in foreclosure. Although court records indicate it is, Colin said it isn’t. “I modified my mortgage but it’s not in foreclosure,” he said. He is also paying off a $35,516 lien from the IRS for unpaid taxes in 2002.”

I always find it interesting when large businesses/property owners go into foreclosure.  A sitting Judge is a whole different matter.

As to whether there is a pending foreclosure suit.  I found this and found it interesting.  Worth noting, that if the Complaint was served, a responsive pleading wasn’t filed within twenty days pursuant to Florida law.

I’m glad someone had the guts to say this:

“In case after case, lawyers representing banks are giving false statements in court about who owns mortgages, or whether the homeowner is willing to negotiate, or whether they have completed all the legal steps to put a foreclosed house back on the market.”

Remember, I didn’t say it.  They did.  Of course, the judges can’t defend the homeowners.  They are there as neutral adjudicators.  So, who do they turn to?

“The courts usually rely on defendants to point out problems in the cases against them. But in foreclosure court, many homeowners make no attempt to defend themselves. Judges cannot step into that role.”

My position has always been that the banks have attorneys for a reason (of course, business entities cannot appear pro se, but that’s an aside), and homeowners should as well.  At worst, they should learn and fight.

In the 12th Judicial Circuit (Sarasota-Bradenton-Venice area), they’re hiring law school students this summer to review the files to ensure that the pleadings beat minimum standards (here’s a hint: most won’t) and requiring mediation (which is being ignored according to the article.)