A Message to Our Community - Click Here
During this health crisis, we are happy to set up video remote calls. Please email Carlos at Carlos@ReyesLegal.com to make this request.
The Affluent Need Foreclosure Help Too - Reyes Law Group

The Affluent Need Foreclosure Help Too

The last 5 years have seen foreclosures impact not only middle-America, but the wealthy at all levels.  The stress of being “underwater” at the multi-million mark can be unnerving for anyone.  When you factor in the original price points associated with these luxury home purchases, it redefines what it means to be underwater!  It’s no surprise to see plenty of the rich, famous & wealthy make “the news” … for the wrong reason!  Here’s a top 10 list to consider:

10. Nadya Suleman – the popular “Octo-Mom” (giving birth to 8!) – lost her house in La Habra, California.
9. David Cassidy – famous lead singer of the ‘70’s Partridge Family – lost his Penthouse in Fort Lauderdale, Florida.
8. Terrell Owens – famous football player (& renegade) – lost 4 Condo’s in Dallas and one in Florida.
7. R. Kelly – R&B star with hits like “I Believe I Can Fly” & Grammy winner – lost his property in Olympia Field, Illinois.
6. Burt Reynolds – may be old news, but in case you forgot, … the famous actor lost his “Estate” in Hobe Sound, Florida.
5. O.J. Simpson – lost his home in Miami, Florida.  (Admittedly, the least of his worries.)
4. Allen Iverson – top flight, retired NBA star – lost his property in Cherry Hills, Colorado.
3. Chris Tucker – lost a “mansion” in Lake County, Florida (& still owes the IRS millions in taxes).
2. Evander Holyfield – former heavyweight boxing champ – lost his home in Fairburn, Georgia (along highway named after him).
And last but not least, at #1, …
1. Rihanna – famous, young and popular singer, … lost her $6.9 million property in Janice Place, Beverly Hills to foreclosure.

So what does the wealthy owner living in a home worth 20% to 30% less do?  Or the better question, how many years will it take to make up that loss of value even in a customary 3%-5% real estate appreciation market?  Looks like they don’t pay!  And if left unchecked, without legal guidance or a strategy, … even the rich and famous get the boot!

A strategic approach to a distress situation, an underwater luxury home, or foreclosure action applies to the affluent more than ever.  Lenders do not retreat from going after them with a vengeance when provided the opportunity.  The first challenge then becomes, …. The “strategic decision” not to pay the mortgage.

Challenging as this sounds, it seems about the only way to get a lender’s attention in a jumbo loan market.  Mind you, lenders don’t really want to sue you, they just want you to PAY that “multi-million dollar difference”.  If they do sue you, that may not be the worst thing to happen.  The defensive procedures utilized in the civil litigation process work to your advantage, i.e., serve to remind the judiciary of your entitlement to “due process”, and the lender’s burden to “prove the case” –  not you.  Of course, the underlying goal is to have lenders (at some point) start to feel and share some of your “financial pain” through the litigation.  Since most lenders have the “cost” of foreclosure down to a science, disrupting their formulaic approach by aggressively litigating the case can serve to dramatically increase the cost of the prosecuting their case, and motivate them to settle (e.g., loan modification or and short-sale).

CONCLUSION

The wealthy also have great (& in some cases greater) exposure and risk in being “upside down” in their home.  Consequently, it makes sense to retain a lawyer and law firm that specializes in mortgage foreclosure crisis management to devise, plot and implement the appropriate strategy and seek to defend and preserve your rights using the legal system.   Remember, YOU too deserve a passionate voice to help you defend your property and preserve your rights!

Carlos J. Reyes  is the Principal of Reyes Law Group. He has been a member of the Florida Bar since 1988 and practices state-wide.  Carlos has been awarded a rating of “AV Preeminent” which is the highest possible rating in both legal ability and ethical standards by Martindale-Hubbell – a well-recognized legal resource. The RLG Legal Team also include attorneys Stephan LopezMelissa J. UlloaPhillip A. Ortiz and the RLG Legal Support Team to bring you a dedicated, experienced and dynamic legal team to handle your legal needs.

We also assist clients in the areas of: Civil LitigationReal Estate LitigationResidential Purchase & SalesCommercial Acquisitions & SalesResidential Landlord-Tenant LitigationCommercial Landlord-Tenant LitigationShort Sales NegotiationsLoan ModificationsCriminal DefenseCivil Rights ClaimsFamily LawCorporate Work, and Labor & Employment Law.

Call us for a FREE consultation at (954) 369-1993  Se Habla Español.

Visit our firm website ReyesLegal.com and review our credentials.

We are located at 150 S Pine Island Rd #210, Plantation, FL 33324

______________________

The Reyes Law Group BLOG is intended to provide information to firm clients, friends and potential clients about various legal related topics. Nothing in this BLOG should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this BLOG without seeking the advice of legal counsel.

The hiring of a lawyer is an important decision that should not be based solely upon advertisement.  Before you decide, ask us to send you free information about our qualifications.

 

Written by Reyes Law Group