Florida foreclosure filings decline by 50% in June: experts warn that the numbers are misleading.

On July 17, 2009, the Miami Herald reported that new foreclosure filings in South Florida dropped 50% from May to June. While this may sound encouraging, lenders took back nearly double the number of homes in foreclosure actions and experts warn that the foreclosure crisis is far from over.
Despite all efforts by the Obama administration to make loan modification available to borrowers, all reports point to only a small number of homeowners receiving loan modifications. One of the main reasons is, in theory, due to the fact that lenders still do not understand the loan modification process. Lenders are also completely overwhelmed by the number of homes in foreclosure, which further slows down the process.
Even though the overall picture remains discouraging, there is hope for homeowners facing foreclosure. Loan modification, although difficult to obtain, is a viable option. At the end of the day, the bank does not want to own all of these homes. The foreclosure process is time consuming and expensive for lenders and the end result is that the home is sold at auction for a fraction of its previous sales price. The bank may receive all cash on the sale, but will still have a significant loss. It may be better for the bank to continue receiving payments from the homeowner in foreclosure, even if those payments are lower as a result of loan modification.
Loan modification is a difficult process, especially for homeowners attempting to do it themselves. Homeowners need to call their lenders repeatedly and incessantly, up to several times per day, to even reach a representative who can begin the loan modification process. The loan modification process is extremely time consuming and difficult, especially for a homeowner who is trying to keep his/her job at the same time. Hiring a foreclosure defense law firm or foreclosure lawyer with experience in negotiating loan modifications may be the best route for homeowners facing foreclosure. Anyone with questions regarding loan modification or foreclosure is encouraged to contact an foreclosure attorney.
The information included in this article has been prepared by Lori Barkus, Esq. for information purposes only and is not intended to be a substitute for legal advise from your own legal counsel. Transmission of such information is not intended to create, and receipt does not constitute, an attorney-client relationship between Lori Barkus, Esq. and the receiver. No information in this article should be acted upon any person, entity or firm without first obtaining proper legal advise. Be advised that the act of sending electronic mail or any telephone communication with Lori Barkus, Esq. or Lori Barkus P.A. does not in and of itself create an attorney-client relationship.
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