“U.S. foreclosure activity has now decreased on a year-over-basis for 20 straight months including May, but the jump in May foreclosure starts shows that it’s going to be a bumpy ride down to the bottom of this foreclosure cycle,” Brandon Moore, CEO of RealtyTrac, said in a statement. “Based on the rise in pre-foreclosure sales we’ve seen so far this year, a higher percentage of these new foreclosure starts will likely end up as short sales or auction sales to third parties rather than bank repossessions going forward. While pre-foreclosure sales have less of a negative impact on home values than bank-owned sales, they still represent a discounted sale where a distressed homeowner is losing his or her home.”

 “With our foreclosure clients, we are seeing these new cases progress at a faster rate through the foreclosure process, as it appears the banks have corrected some of the problems causing delays in the past,” according to Johnson, Auvil, Brock & Pratico Partner, Steve Pratico.

 “However, banks also seem more willing to negotiate new terms for distressed homeowners, and seem less interested in taking back properties in foreclosure.  Bank representatives are working to keep the distressed borrowers in their homes, taking such steps as offering lowered interest rates, extending the length of loans, and deferring arrearages to the end of the loan without accruing interest during the deferment period.  These are generally good options for the distressed homeowners, but must be carefully considered on an individual case-by-case basis,” stated attorney Pratico.

 For further information on this story and related links, visit: http://www.bizjournals.com/tampabay/blog/morning-edition/2012/06/tampa-metro-has-nations-fifth-highest.html?ana=e_tbay_rdup&s=newsletter&ed=2012-06-14

How can you avoid this danger? It’s simple: don’t drive distracted. Put your phone on silent or turn it off while driving to and from a location. Have your passengers handle any emergent phone calls or text messages. If no passengers are available, pull over to a safe location prior to picking up your phone. Adjust your radio, CDs or IPods prior to starting your drive. Pull over to eat and put on makeup before or after driving. The solution is simple – think about your safety and the safety of others when you drive.

“We are seeing more and more auto accidents as a result of distracted driving,” said Hutch Brock, personal injury attorney at Johnson, Auvil, Brock & Pratico, P.A. “People need to be patient while driving and pull over to make the important text. The results of an auto accident caused by a distracted driver can be devastating and often are completely avoidable.”

For more information on distracted driving and how you can help prevent it, visit www.endDD.org. 

One in every 336 homes in Florida is now in foreclosure, giving the Sunshine State the sixth highest number of foreclosures in the U.S.  With numbers that high, it was only a matter of time before con artists capitalized on someone’s fear of losing their home. 

Foreclosure rescue and loan modification scams work like this:  You answer an ad from a company promising to modify your delinquent loan and save your home, but only if you transfer over the deed to your house.  Seems sketchy at best, so why are homeowners falling for it?

“We know someone who answered an ad promising to save her home,” said Carolyn Meadows, an attorney with the law firm Johnson, Auvil, Brock & Pratico, P.A., “and ended up with three mortgages instead of one after the person who convinced her to turn over her deed took out $185,000 in two mortgages and fled the country.  She was convinced it was her last and only resort.”

So how can you protect yourself and not fall victim to a deal that is literally too good to be true?  Here are the guidelines recommended by the Florida Bar:

• Contact your lender directly before reaching out to a third party making promises.
• Avoid businesses that guarantee favorable outcomes. There is no legitimate way to promise any particular outcome with respect to defaulted and under-water mortgages (mortgages in which the amounts owed cost more than the houses are now worth).
• Avoid businesses that ask for up-front charges for loan modification or foreclosure rescue. This practice is specifically prohibited by Florida law.
• Do not work with businesses that instruct you not to contact your lender, attorney or financial counselor and to make mortgage payments directly to them.
• Avoid businesses that use names or symbols that mimic federal and state programs or falsely suggest they offer legal services or are affiliated with an attorney or law firm.
• Before doing business with any loan modification business, check it out. Get its physical address. Ask for the names of corporate officers. Call the Attorney General’s Office (1-866-966-7226) to see if there are complaints reported against it. Ask questions and get answers. Avoid any business charging for services related to the president’s Homeowner Affordability and Stability Plan. Lenders should provide this information at no cost to consumers.
• Avoid any proposals that have you deed your home over to a company, which will then rent it back to you.
• Avoid companies that pressure you to fill out paperwork without reading the fine print or consulting an attorney.
• Avoid any company that asks for payment via a cashier’s check or wire transfer.
• If any business or individual offers to help you stop foreclosure immediately by signing a document authorizing them to act on your behalf or to set up financing for you, do not sign without consulting a professional (an attorney or HUD-approved counselor). This may be a trick to get you to sign over title to your home. You are then vulnerable to losing your home and all of your equity in your home to the so-called “rescuer.”

But with this unregulated, vibrant flow of information can come insights into someone’s life like never before.  It’s easy to invade someone’s personal space through social media accounts if you have password access and come away with information that would be hard to gather otherwise. 

That’s why two senators, Richard Blumenthal from Connecticut and California’s Leland Yee, are asking Attorney General Holder to investigate whether employers requesting Facebook passwords during job interviews violates federal law.  It’s a practice that’s prevalent enough to inspire proposed legislation in Illinois and Maryland to forbid public agencies from asking for such information. 

 “We don’t think employers should be asking perspective employees to provide their passwords because we don’t think it’s the right thing to do,” said Facebook Chief Privacy Officer Erin Egan.

In the world of personal injury law, Facebook can make or break cases.  If someone claims a disabling back injury from a slip and fall, and posts pictures of him or herself sky diving, it’s visible proof that their injury is probably not as debilitating as they claim. In fact, many law firms are recommending that clients deactivate their Facebook and Twitter accounts altogether until after the lawsuit is over which may pose significant legal problems regarding destruction of evidence.

“It is becoming increasingly important both from an employment and personal standpoint to be conscious of what you are posting on your Facebook page,” said Cady H. Walden, a personal injury attorney with Johnson, Auvil, Brock and Pratico, P.A. “If a picture or post can be interpreted in a negative fashion, think twice about posting it.”

A Power of Attorney is a legal document delegating authority from one person to another. In the document, the maker of the Power of Attorney (the “principal”) grants the right to act on the maker’s behalf to an agent. What authority is granted depends on the specific language of the Power of Attorney. A person giving a Power of Attorney may make it very broad or may limit it to certain specific acts. A Power of Attorney terminates if the principal becomes incapacitated, unless it is a special kind of Power of Attorney known as a “Durable Power of Attorney.” A Durable Power of Attorney remains effective even if a person becomes incapacitated; however, there are certain exceptions specified in Florida law when a Durable Power of Attorney may not be used for an incapacitated principal. A Durable Power of Attorney must contain special wording that provides the power survives the incapacity of the principal. Most Powers of Attorney granted today are durable.

Florida’s new Durable Power of Attorney law became effective on October 1, 2011; however, any Durable Power of Attorney properly executed prior to October 1, 2011 will still be valid. That being said, Florida residents may want to consider updating this legal instrument, to take advantage of the additional protections provided by the new law.

Key Provisions of the new Durable Power of Attorney Law:

• All Durable Powers of Attorney signed on and after October 1, 2011 will be immediate. As such, your agent will have the power to act as soon as you execute the document. It is not necessary to establish that you are incapacitated for your agent to act. 
• Florida residents have routinely named successor agents in their Florida Durable Power of Attorney. The new law officially recognizes that backup agents may be included in the Durable Power of Attorney.
• If a principal names co-agents, each one can act alone without the consent or knowledge of the other, unless the principal specifies otherwise in the instrument.
• Under the previous version of the law, only an original Durable Power of Attorney could be honored. The new law allows for photocopies and electronic copies of the Durable Power of Attorney have the same validity as an original. 
• The principal must give the agent authority to do certain acts, and such authority must be specifically initialed by the principal.
• “Blanket” powers to agents are no longer permitted.
• Revoking the Durable Power of Attorney requires the principal to record a revocation with the Clerk of the Court in Public Records, send copies of the revocation to all financial institutions, and formally notify the agent of the revocation.  

Durable Powers of Attorney are not forms: they are legal documents. You must understand your Power of Attorney and what it does and does not authorize before you sign it. There is no statutory form for the Durable Power of Attorney in the State of Florida, as the legislature recognizes that every individual has different needs. 

If you have questions about your current power of attorney, or if you are interested in obtaining a Durable Power of Attorney, please contact attorneys Leonard H. Johnson or Sheada Madani at the law firm of Johnson, Auvil, Brock & Pratico, P.A. 

Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for relief.  Before the Act passed, debt forgiveness always resulted in taxable income.  Under the Act, homeowners may be able to exclude up to $2 million of debt forgiven on their principal residence.  Some cases of insolvency are also eligible for relief, but debt forgiven on second homes, rental properties, business properties, credit cards or car loans are not. 

So why would the amount relieved be taxable in the first place?  Think of it this way.  Let’s say you borrow $10,000 and default on the loan after paying back $2000.  If the lender is unable to collect the remaining $8000, they cancel that debt, so the $8000 is generally considered to be taxable income to you. 

“But the relieved amount isn’t always taxable,” explains Steve C. Pratico, partner and attorney with Johnson, Auvil, Brock & Pratico, P.A.  “For most homeowners, debt forgiven on the qualified principle residence is not taxable under the Mortgage Debt Relief Act.”   

Those who have their debts reduced or eliminated normally receive a year-end statement, Form 1099-C Cancellation of Debt, from their lender for any forgiven debt of $600 or more.  By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed. 

“There are other exceptions, like the cancellation of student loans under certain conditions, but restrictions apply,” said Pratico.  “The best course of action is to work with an attorney well versed in this law to make sure you’re taking full advantage of your debt relief.” 

The state’s new No-Fault Auto Insurance Bill, recently presented to Governor Rick Scott after multiple efforts in the Legislative chambers, appears to be favorably viewed and in que for signature.  If the Bill becomes law, changes that you may have heard designed to combat fraud and cap reimbursements will just as likely create widespread confusion, overcrowded emergency rooms and injustice for those injured in car accidents.

The new law, like the one in existence right now, makes available up to $10,000 for emergency service coverage.  The new law, unlike the one in existence, appears to limit these benefits to $2,500 if the care is not for the initially diagnosed emergency medical condition.   

“These limitations on benefits will inevitably increase litigation”, said Hutch Brock, a Personal Injury Trial Lawyer in Dade City and a partner with Johnson, Auvil, Brock & Pratico, P.A.  The new PIP law also specifically excludes care provided by other healing arts including acupuncturists and massage therapists.

The law also has a time limit, anticipated to be a bright line, requiring medical care within 14 days of the crash, and it too is a concern to Brock.  “This is one of the biggest changes to the no-fault law,” Brock said, “because as proposed, PIP will not be payable for any medical benefits if the motor vehicle accident victim does not get treatment within 14 days of the accident.”   When you add this time limit to the requirement that follow up care must be for an emergent medical condition, Brock believes “a discrepancy on what was reported at first ER visit and what you complain about to your local doctor 5 days later will be inevitable.”

The idea of the change is a good one; after all we all pay for fraudulent claims.  Allowing automobile insurers the ability to deny related care just because it was not mentioned at that first visit, however, “seems shortsighted,” Brock said.  He added, “When you consider that insurers may now require an injured victim to sit down with them for a statement under oath before receiving benefits, you are adding disruption to an already difficult and upsetting time for an accident victim.”

The new bill, if signed into law, will create questions and worries for all those involved in motor vehicular accidents, and Brock has already seen an uptick in questions he is being asked every day.  “If you know about the law you have questions.  The scary thing is for those who don’t and the confusion and difficulties they will now endure,” Brock said. 

As reported in the Palm Beach Post, Senate Banking and Insurance Committee Chairman Garrett Richter, R-Naples, said, “This bill is the best effort …. since this debate began.”  The question is then not whether the effort is their best, but its outcome, and that, according to Brock, is foreboding.  “When we see our friends who struggle to pay their bills so they carry deductibles as allowed by the law … and now by law they may feel their only option is to go to the ER where their bills may be in the thousands.  Considering PIP only pays a share of the bill, the result will be more bills incurred by a victim of a crash that they may not have caused.”   

Short sighted policy, unintended results, and at a cost passed on to all of Florida’s drivers.  “That’s just the way I see it,” says Brock.

According to the analytics firm Capital Economics, that is indeed light at the end of the housing crisis tunnel that has darkened our economy since 2007.  

One of the reasons for the brightened outlook lies in loosening credit.  Today, the average credit score required to qualify for a mortgage loan is 700. While it’s higher than scores were prior to the housing downturn, it’s constant with requirements one year ago.  Another is that banks are starting to lend again.  Banks are loosening credit availability and are now lending amounts up to 3.5 times borrower earnings, according to DSNews.com.  This loosening of loan-to-value ratios (LTV) is one of the clearest signs yet of improving mortgage credit conditions. 

“This is in positive contrast to 2010,” said Jon Auvil, partner and real estate attorney with Johnson, Auvil, Brock and Pratico, P.A., “when banks were lending based upon a LTV of 74%.  Now, they’re lending at 82% LTV, which opens up credit to more potential homeowners.”

 But optimists are still cautious.  The Eurozone instability is looming over the world economy, and eight percent of U.S. homeowner hopefuls are still struggling with credit requirements. 

 Yet, it’s still a light at the end of the tunnel.  And that’s good news for all of us. 

Land is in short supply in Pinellas, which has been mostly built out for nearly a decade.  Hillsborough is feeling the positive effects of two Super Bowls and healthy residential and commercial growth before the housing market downturn, making land there scarce as well.  For companies looking to expand or relocate to Tampa Bay, the best solution lies to the north in Pasco County.

“Pasco has the strong position for Tampa Bay because we have the predominant amount of land,” Pasco county growth management chief Richard Gehring said during a commission workshop.

Bob Gray, a consultant with Strategic Planning Group, added, “[Pasco is] in the major growth center for the region. It doesn’t have any place to go in Pinellas. There’s very few places in Hillsborough. Where’s it going to go?”

Gray’s firm has predicted that Pasco will add up to 7.2 million square feet of office space and 20 million square feet of industrial space by 2027.  Pasco boasts much shovel-ready land, some of which is already tied to approved site plans, utility connections and other basic infrastructure requirements. 

But what are the options for landowners who are shy to develop when some office parks have sat empty for years?  Gehring suggested one idea would be to create public-private partnerships to develop properties while land is cheap.  Another would be to offer long-term leases on sites that businesses would eventually own. 

“Pasco is perfectly positioned to accommodate Tampa Bay growth as it radiates outward from Tampa and St. Petersburg,” said Leonard Johnson, a land use and real estate law specialist and partner of Dade City-based Johnson, Auvil, Brock & Pratico.  “Tax rates, impact fees, and land prices are very advantageous for both businesses and residents, there are lots of pad-ready sites that can be built on right away, and it’s a great place to live and raise a family as well.” 

With a new firm name, a new logo, and some new faces at Johnson, Auvil, Brock & Pratico, it was only fitting that a new website followed.  Now when you visit DadeCityLaw.com, you’ll find a contemporary, in-depth look at the firm and its many practice areas, a personal introduction to all of its attorneys, and many ways to interact with JAB&P, both on the site and via social media portals like Facebook and Twitter.  The site will also feature a weekly blog that will cover topics ranging from success stories to community involvement. 

“With our new site, we’re able to showcase our people and our practice areas in a way that is in keeping with our emerging new brand and our solid 20-year reputation,” said Partner Hutch Brock.  

On the site, visitors can request a free consultation and join a mailing list.  But perhaps the most revolutionary components are the social media links, which are a rarity in most law firm communications.  In an audit released in December of 2011 by LexisNexis Martindale-Hubbell, of the 110 global law firms surveyed only 31% used Twitter, only 29% were on Facebook, and a mere 7% used social media widgets to integrate those accounts with their firm websites as JAB&P is doing. 

“We want to stay connected with our clients and meet new prospects in cyberspace,” said Partner Jonathan Auvil.  “With 180 billion people on Facebook, it’s an audience no business can ignore.”