Daytona Beach Real Estate Law Blog

In response to allegations of robo-signing and other deceptive practices relating to foreclosure litigation, a settlement agreement has been proposed between the nation's five biggest lenders and the states' attorneys general.

Under the agreement, Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial would cough up as much as $25 billion and agree to change the ways foreclosures are handled in the future.

The housing market in Florida and elsewhere appears to be slowly inching its way back, but before it makes too much progress experts say that 2012 will likely see another surge of foreclosures and a drop in real estate prices.

According to reports, a large wave of foreclosures is expected to hit the country as banks get more aggressive with the 3.5 million mortgages that are currently considered seriously delinquent.

Today it was reported that the infamous former NFL star O.J. Simpson is facing foreclosure on his Florida home. Simpson, who is serving a prison sentence of up to 33 years for an armed robbery and kidnapping conviction in 2007, is accused of not making a mortgage payment since 2010, CNN reported.

The Simpson home facing foreclosure litigation is located in Kendall, Florida. According to court records from the Miami-Dade County Clerk's office, the initial foreclosure complaint against Simpson was filed in September. Simpson's lender is JP Morgan Chase.

We have heard some pretty crazy foreclosure stories in the past couple years, and this is one of them. Rather than entering the number "8" when paying his mortgage by telephone, a Florida man entered a "0" instead, making his payment off by 80 cents. The mistake ended up nearly costing the man his home.

According to the Tampa Tribune, the Florida man had recently been approved for a loan modification program with his bank, and his payments lowered by $200 per month. However, he was kicked out of the program and threatened with foreclosure when his monthly payment was 80 cents too low.

Unfortunately, the housing crisis in Florida has left many distressed homeowners in a very vulnerable position. Some businesses take advantage of the situation and scam homeowners, who are desperate to save their homes or credit.

Recently, Florida Attorney General Pam Bondi announced that her office was suing two West Palm Beach companies that are accused of illegally taking upfront fees for foreclosure rescue services or loan modification assistance.

Over the past year, a series of studies highlighted the negative health effects foreclosures have had on Florida residents. Researchers from Johns Hopkins University found a direct relationship between the stress caused by foreclosure litigation and certain illnesses.

What's worse is that doctors and mortgage counselors believe that many more distressed homeowners could fall victim to these stress-related illnesses as foreclosures are expected to rise again throughout the next year.

Last week it was reported that Florida Attorney General Pam Bondi filed a motion with the 4th District Court of Appeal to ask the state Supreme Court for clarification regarding her office's authority to investigate and pursue civil charges against so-called "foreclosure mill" law firms.

Up until now, Bondi has been highly criticized for not doing enough to put a stop foreclosure fraud on behalf of some of the state's most notorious foreclosure firms that represent banks and lenders in foreclosure cases against distressed homeowners.

The housing crisis isn't going to end soon, an Inside Mortgage Finance spokesperson claims. In November of this year, 46 percent of the homes that sold were either short sales or REOs. This is evidence that there are still many distressed homeowners who are in over their heads with mortgages.

A short sale is when the bank accepts less than what is owed on the property, usually so the bank doesn't have to repossess the property. This can be a good option for homeowners who are in jeopardy of losing their homes to foreclosure. An REO is a home that was already repossessed by the bank and is sold by the bank.