FORECLOSURE DEFENSE NEWS AND INFORMATION - Florida

It is widely acknowledged that the mortgage foreclosure crisis in Florida is more severe than in most states. Recent statistics show that in some areas, the situation has reached crisis proportions and threatens to turn entire communities into virtual ghost towns.

Over the weekend, the Miami Herald reported that in certain ZIP codes in places like Homestead and Florida City, around 25 percent of the homes are in one stage of foreclosure or another. Countless others were built by developers and sit vacant in ghostly subdivisions, with not a buyer in sight. Many homeowners in Homestead, Florida are faced with desolate streets that are lined with abandoned homes. The range of choices that are available to them appear to be dismal: the amount they owe on their mortgages is far greater than the current value of their homes.

Many of these homeowners may benefit by communicating with their lenders to request relief. Possibilities for such homeowners include letters requesting modification of their mortgages or a letter seeking the loan servicer's approval of a short sale of their properties. The forms required for such relief are readily available, and lenders have shown an increasing willingness to provide such relief.

In a decision issued earlier this month, Miami-Dade Circuit Court Judge Jennifer Bailey cancelled homeowner Orlando Eslava's debt after lender HSBC Bank USA ignored her previous order to post a $414,000 bond.

The decision by Judge Bailey is just the most recent example of a series of decisions issued by courts nationwide in which lenders have been punished financially for engaging in abusive conduct in their dealings with property owners. In the case involving Mr. Orlando, HSBC not only failed to post the court-ordered bond, but also proceeded with the sale of the property despite having previously agreed to accept reduced monthly payments.

The decision by Judge Bailey underscores how important it is for homeowners to protect their rights by filing answers in foreclosure cases, thus ensuring that their legal defenses are preserved.