Florida Bankruptcy Lawyer Blog

Well, according to a recent ABA Journal article, it appears Fannie Mae is going to pursue deficiency judgments against borrowers who walk away from loan obligations without good reason.

A deficiency judgment is a judgment following a foreclosure sale for the difference between the property’s value at the time of the foreclosure sale and the balance owed on the loan obligation. Once the deficiency judgment is obtained, the creditor may be able to garnish wages, seize assets, and take any other action allowed by law. Apparently Fannie Mae will be instructing its servicers to recommend which homeowners should be pursued for deficiencies.

The first question I had when I read this article is what criteria will be used to determine whether a reason for the walk away was a “good reason.” It appears that the Fannie Mae’s goal is to stop people who have the ability and means to pay their mortgages from walking away merely because the property is no longer an economically appealing investment. But with the management of the loans I have seen by the servicers in my clients’ cases I have little doubt that implementation of this program will affect people not intended.

Continue reading "Fannie Mae Will Pursue Deficiency Judgments Against Homeowners" »

As a Consumer Bankruptcy Attorney, I hear and read about what is going on with consumers who are on the front lines of economic issues. The latest twist on the Foreclosure Crisis is that inventory is hurting the real estate market. I don't know about your neck of the woods, but right here in Southwest Florida our real estate market has taken a beating. As a homeowner, I'm not too happy with the drop in prices, but I am more concerned about others who are facing multiple issues. For example, it is estimated that over 7 million homes in the United States are in trouble.

Continue reading "Bankruptcy Can Cure Real Estate Sickness" »

The Senate will vote either today or tomorrow on a bill that could give Bankruptcy Judges the ability to cramdown home mortgages to the present level owed on the home. Currently, Bankruptcy Judges cannot cramdown first mortgages on debtor's homesteads. In today's market, now is the time and place for this bill to be passed. If you are a reader of this blog or any other blogs that I write for, you know how important this bill, as passed by the House of Representatives, is for the people of Southwest Florida, especially Cape Coral and Lehigh Acres.

So, either today or tomorrow we will know if our elected officials have sold us out to the Banks and Mortgage Companies. My bet is that they will, and for each elected official that sells us out for political gain, I say vote them out. There is no issue that is more important to the people of the United States right now than housing. If you are not sure of where you will be sleeping tonight, how can you be a productive American at work. The issue of housing is core to our economy, and the jokers in Washington are playing politics with the Banks. They are in discussions with banks that we the people own. Why do the banks have any say in this legislation? Aren't we a democracy (Rule by the People)? Sure, as long as you can hire a lobbyist with a politician in his or her back pocket. These are things that baffle my mind. Let's wait and see if they do the right thing.

Continue reading "Senate To Vote On Bankruptcy Judge Cramdown" »

As a foreclosure defense attorney in Sarasota, I am glad to say that Sarasota Circuit Court Judge Donna Padar Berlin recently issued an Order canceling a foreclosure sale in a mortgage foreclosure case. Sarasota is now, in my opinion, taking a firmer stance against abuse in the mortgage foreclosure system by the mortgage companies. This is an excellent step in the right direction.

Prior to the Court's March 6, 2009 Order canceling the March 30th sale date, the Court had issued a prior Order on February 6, 2009 which stated that the mortgage company could not set another sale date. Despite that Order, The sale date on the defendant's home had been set for March 30, 2009. The Sarasota Judge canceled the sale when she found out that the mortgage company represented to the homeowner that she could modify her mortgage and that the mortgage foreclosure lawsuit would be abandoned.

Kudos to Judge Donna Pader Berlin for putting a stop to a practice that is all too prevalent in today's economy.

Continue reading "Sarasota Judge Cancels Foreclosure Sale" »

The Obama Administration released it plan to help the housing market yesterday, better known in Lee County as Foreclosure Alley, and the News-press is reporting that the Obama Plan will help 34,000 southwest Florida homeowners. At the Dellutri Law Group, we disagree with this analysis. We believe that quite literally, Southwest Florida residents got the shaft. Our team of consumer attorneys is combing the bill to look for some glimmer of hope for the residents of Southwest Florida.

At this point in time, it appears that bankruptcy will still be the best option because the House of Representatives is still debating: Helping Families Save Their Homes in Bankruptcy Act 2009. Let's hope our elected officials don't over-think this one, and they allow our residents to modify their mortgages in the bankruptcy courts.

Continue reading "Bankruptcy Still Best Option for Lee County Residents" »

With the economy being so bad in Southwest Florida and the pending changes coming to the Bankruptcy Code, we decided that it was time to spruce up the old website with a new blog that deals specifically with mortgage related issues. So the new blog should be rolling out next week. Keep an eye out for it.

Continue reading "New Mortgage Modification Blog Coming Soon" »

After reading the Sunday papers, I was thinking about excess inventory. At the same time I was watching a news show. I know, a real bad mix to start with. I began wondering how much our Government tells us, and what they hide from us. I started to wonder if the banks are doing the same thing again, to provide false hope of an economic recovery any time soon.

If you read the papers or watch the news in Southwest Florida, all you hear about these days is the number of homes in foreclosure. If you read the weekend newspapers, you hear about how things will be better when the inventory of homes on the market dwindles and buyers start to pick up. Well, I have one question: How does the foreclosure rate and modification rate factor into the inventory rate.

Continue reading "Foreclosures, Modifications and Excess Inventory" »

As a Board Certified Consumer Bankruptcy Attorney who also defends mortgage foreclosure cases for consumers, I was asked whether the proposed 2009 Amendments to the Bankruptcy Code, Helping Families Save Their Homes In Bankruptcy Act, will prevent foreclosures or cause more foreclosures and then will it prevent bankruptcy filings or cause more bankruptcy filings?

Continue reading "Will the 2009 Bankruptcy Law, If Passed, Lessen Foreclosures" »

Carmen Dellutri's recent article titled: Helping Families Save Their Homes In Bankruptcy Act is the featured article on the Bankruptcy Law Network.

Continue reading "Featured Article on Bankruptcy Law Network" »

Yesterday, I wrote a blog for the Bankruptcy Law Network about the new legislation, which, if passed, will allow homeowners to cram-down their mortgages to the value of their house. Here is a link to a summary of the bill.

If passed into law, this bill could radically transform the landscape of Southwest Florida. More homeowners will remain in their homes, and that stability will help the residents of Southwest Florida survive this recession.

Continue reading "Helping Families Save Their Homes In Bankruptcy Act" »

This morning I wrote a blog for the Debt Law Network discussing whether the United States is going broke. You can read the blog by clicking here.

Continue reading "Is the United States Going Broke?" »

If you want to know why so many people with sub-prime loans are now in Bankruptcy, you may want to read the following article. The writer doesn't focus on bankruptcy, but she does expose a different side of the mortgage industry. The BusinessWeek writer, Mara Der Hovanesian just published this article about the truth behind the mortgage mess. How your loans were being pimped out behind your backs. You can read the article by clicking here.After reading the article, I'm shocked and appalled by the irrational behavior. I'm disgusted by the lack of oversight in this industry. This scenario was played out nationwide in order to sell mortgage products for some people to get rich. It is horrifying to read about our history and now see our future.

Continue reading "An Inside Look At The Mortgage Industry" »

The Federal Government's game plan to rescue the economy continues to look like a chicken with it's head cut off. Yesterday, it announced that the $750 Main Street Bailout, now will have to focus on the Banks, but the consumer can still pay for it. It has also announced that another mortgage rescue plan is heading toward the American Public. So, the three Hope programs are a bust. If you recall, we recently had the Hope for Homeowners Act. Before that, we had the Hope Alliance, and before that we had the Hope Hotline. This will be the fourth such piece of trash hurled at us this year. Do they think that this one will work. No, I don't believe such trash. As I have written many times before, the legislation has no teeth. Here is my take on the new legislation. Interestingly, I call it new legislation, but I have not actually seen anything in writing. The only thing that I have seen is the press release from the Federal Housing Finance Agency.

Continue reading "Another Mortgage Work-Out Option Coming Our Way" »

Recently, Carmen Dellutri's Article: Why Are Mortgage Modifications Still Not Working? was selected to be the feature article on the Mortgage Law Network.

Continue reading "Featured Article on Mortgage Law Network" »

Recently, I wrote a blog for the Mortgage Law Network titled: More Homeowners are Underwater on Their Mortgages. The reason I wrote the blog was because of the alarming numbers of homeowners whose homes are underwater. The term underwater means that the home is not worth what is owed on the debt. In Southwest Florida, the number of homes underwater is alarmingly higher than the national average.

Continue reading "How Many Southwest Florida Resident's Homes Are Underwater?" »

Yesterday, Democratic Presidential Candidate, Senator Barack Obama called for a ninety (90) day moratorium on foreclosures. In my opinion, this is simply more rhetoric from a candidate fishing for votes. He is playing to the media, so they will report to Main Street. Don't get me wrong, I'm not an Obama hater, I just don't like being played by anyone. If you say you are going to do something, then you better be able to do it, or give it one hell of a shot. Don't just say things for the sake of saying them. That ticks me off, and between Senator Obama and Senator McCain, I've been ticked off quite a bit lately.

Continue reading "Senator Obama Calls For Foreclosure Moratorium" »

Ladies and Gentlemen:

Changes are coming to the Florida Bankruptcy Lawyer Blog whether you like it or not. It's time to kick the tires and light the fires and slap a new coat of paint on this puppy. We also might throw in some cool features like a new website and a new look for the Florida Injury and Accident Lawyer Blog as well.

So, keep your eyes peeled, and watch out for the new stuff. It may just hit you right between the eyes.

Continue reading "Changes, They Are A Coming" »

As a Board Certified Consumer Bankruptcy Attorney, I see Bankruptcy clients all week long. This week, I saw a potential client who was convinced that her foreclosure was going to continue if she filed for bankruptcy protection. Since she had never filed for bankruptcy protection before, there is no limitation on the automatic stay provisions. The automatic stay is an injunction that goes into place immediately to prevent a creditor from taking any action to collect on a debt. That includes continuing the foreclosure process.

Continue reading "Bankruptcy Stops Foreclosure!" »

What will happen to the Bankruptcy Code if Presidential Candidate Obama picks a Vice President who is commonly known as Senator MBNA aka Senator Joe Biden. The Bankruptcy Code was changed in 2005 and Senator Joe Biden was instrumental in the changes to the Bankruptcy laws.

Now, we have a dilemma. At first blush it would appear to be a conflict as Barack Obama's past statements about how he would change the Bankruptcy Code would seem to conflict with his potential decision on his Vice President. In the past, Senator Obama has stated on numerous occasions that he would seek an amendment to the bankruptcy code to allow individuals to cram down their first mortgages on their homesteads, which is now prohibited. However, if Senator Obama picks Senator Joe Biden as his running mate, he may have some questions to answer.

Continue reading "Obama and Senator MBNA" »

The month of May has changed the way I think about politics. I used to be upset that nothing was being done to help the people living in Southwest Florida, now I am just ticked off. Foreclosure filings were up 48% over May of last year. This statistic proves several things: First nothing is being done on the Federal level to help the people of Southwest Florida keep their homes. Second, nothing is being done on the State level to help residents keep their homes. Third, where are the results that the mortgage companies promised when they argued not to change the bankruptcy laws. Where is Hope Now, President Bush's coalition of mortgage companies dedicated to helping people save their homes.

Continue reading "May 2008 Sees Foreclosures Surge 48%" »

Living in Southwest Florida is never dull. Now, despite having beautiful weather and beaches, we are dealing with real economic issues which will determine the future paths taken by resident and business owners in Southwest Florida. Many business owners are closing their doors because of cash flow. Residents are feeling the pinch at the pump and in the grocery stores. Many people are opting to stay at home for dinner, rather than drive and then pay for that luxury. Of course, it is not that bad yet, but I can see it coming on the horizon. When people cannot afford to fill up their gas tanks, how are they going to go out and eat. Naturally, the next logical question is: How can they pay mortgage payments on a home if they cannot afford to fill up their tanks.

Continue reading "Mortgage Modifications Are Still Not Working." »

Recently, an article was published by John Leland in the New York Times, American Album series about a local gentleman named B. Keith Councell, a fourth generation bee keeper. I applaud the writer, Mr. Leland, who submitted an excellent article on Mr. Councell, and his calling as the Southwest Florida Bee-man; however, there is also a subliminal message that is very troubling for those of us who live in Southwest Florida. The subliminal message is very simple, foreclosures are a huge problem for our community and that problem has to be dealt with now.

Continue reading "Are Bees Capitalizing On The Foreclosure Market?" »

As a Board Certified Consumer Bankruptcy Attorney, I am seeing bankruptcy clients each and every day who are surrendering their homes in the bankruptcy process. Some individuals are choosing not to file bankruptcy and are deciding to leave their homes. Right now, Southwest Florida is experiencing one of the highest foreclosure rates in the country. People are literally walking away from their homes each and every day. Port Charlotte, Cape Coral and Lehigh are experiencing higher rates of foreclosure than other areas of Florida. Each day I speak with the people who are suffering through this problem, and they all tell me the same thing. I am going to mail the keys to my mortgage company or servicer.

Continue reading "What is Jingle Mail?" »

It seems that you cannot go anywhere today without hearing someone speaking about what is going on with the foreclosures in Southwest Florida. It's in the newspapers and on the minds of many people living in Southwest Florida. Most people in Southwest Florida will fall into one of three categories: First, there are the rich that will never have to worry about the foreclosure crisis, so we will leave them out of this. We will talk about them later when the stock market takes a dive, and then we can say, we told you so, but you were too busy attending wine auctions that you missed all of the economic indicators predicting a recession. Second, you have the middle class, which is our largest group. Many of these individuals are homeowners with mortgages on their primary residences, and they are feeling the pinch of the recession as their home values plummet. These are the people who have either lost their homes already, live in fear of losing their homes, or are renting somewhere else in an attempt to save their homes.

Continue reading "Foreclosures In Southwest Florida: It's A Community Problem" »

Yesterday, Florida Senator, Mel Martinez, addressed the Florida Legislature about several issues including the mortgage crisis. Senator Martinez stated in his newsletter that the problems Floridians face, like the environment and finances, are compounded by the national economy and the housing crisis. He made reference in the newsletter to initiative that are being implemented at the Federal Level to help the economy and the mortgage crisis. That's it. That's all it states in the newsletter. No kidding. What kind of message is that?

Continue reading "Senator Martinez Addresses The Florida Legislature About Foreclosure Problem" »

This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Carmen Dellutri is a Board Certified Consumer Bankruptcy Attorney and is one of the founding members of the Bankruptcy Law Network.

According to the American Bankruptcy Institute, bankruptcy filings rose again in February 2008. Consumers filed approximately 76,120 petitions for bankruptcy relief. This total was up from the 66,050 filed in January. Interestingly, Chapter 13 bankruptcies were over 36% of the filings.

Continue reading "Bankruptcy Filings Up Again" »

January 2008 was the beginning of the new year for most people in Southwest Florida, and for of our other citizens, it was more bad news of the same old variety. In January 2008, 1,833 foreclosure lawsuits were filed in Lee County. This is a very depressing statistic. Lee County had approximately10,700 foreclosure lawsuits filed in 2007. In 2006, the number was approximately 3, 920. The increase is dramatic, but understandable. Unless you have been living under a rock for the past 36 months, you know what happened in the Lee County real estate market.

Continue reading "New Foreclosure Record Set For January 2008 In Lee County, Florida" »

The best business in 2007 was the foreclosure business. Foreclosures were up 75% last year nationwide. Nationwide, at least 1% of all households were in some type of foreclosure. According to the 2007 United States Foreclosure Market Report, there were 2,203,295 mortgage foreclosures filed in the United States. Foreclosure mills (law firms that process foreclosures) and their attorneys were working overtime trying to keep up with the demand. Not many other businesses can say that their business was up 75% over the year before.

Continue reading "Nationwide Foreclosures Soar - 765 a day in Florida" »

This post is published by Carmen Dellutri, Esq. Board Certified Consumer Bankruptcy Attorney.

You may recall that bankruptcy filings surged in 2005 prior to the bankruptcy laws being changed. As expected, 2006 was a relatively slow year in the bankruptcy world when it came to new filings; however, each and every bankruptcy attorney truly committed to his or her practice knew what was going to happen in the future.

Continue reading "Bankruptcy Filings Surged in 2007 And Will Continue in 2008 by Bankruptcy Attorney Carmen Dellutri" »

According to a recent report by Foreclosure.com, Florida is at the top of the statistical ladder when it comes to foreclosure cases for the month of November. Obviously, this is not good news for the people of Southwest Florida. Unless you have been living under a rock for the past year, the economy down here is terrible, and it seems to be getting worse on a daily basis. I know the word recession is an unpopular term in the mainstream media, but I think we are in a recession and very close to a depression.

Continue reading "Bankruptcy And Florida: Foreclosures are Thru the Roof" »

Yesterday, the Democrats in the House of Representatives supporting legislation that would reform the bankruptcy laws were glad that a Republican decided to sign onto the legislation. Republican Rep. Steve Chabot from Ohio comes from a state that has been hit hard by the subprime meltdown. (I still do not see anyone from Florida stepping up to the plate on this issue) The Democrats hope that this will open the doors for more Republicans to sign onto the legislation. In a nutshell, the legislation will allow people with recent exotic mortgages in bankruptcy to reformulate their mortgages on their primary residences, something that they are prohibited from doing at this time. Bankruptcy Judges would be allowed to cram down the value of the homes and extend the terms of repayment to a maximum of thirty (30) years. I wrote more about this at: www.bankruptcylawnetwork.com

Continue reading "Bankruptcy In Florida: New Bankruptcy Legislation Is Gaining Momentum" »