In Episode 39, expert Peter Zalewski of Condo Vultures interviews litigator Josh Migdal – a name partner in the Mark Midgal & Hayden law firm in Miami – about how banks are preparing for a possible “tidal wave” of mortgage foreclosures that could be occurring in 2021 as a result of an overheated South Florida real estate market combined with the economic disruption caused by the COVID-19 pandemic. The discussion touches on a variety of topics ranging from mortgage fraudsters to the Federal Deposit Insurance Corp (FDIC).
In Segment 1, Migdal discusses relocating from the Midwest to Miami at the onset of the South Florida condo crash and the Great Recession. Migdal also talks about how he changed sides from defending clients against the FDIC in civil litigation to suddenly representing the federal banking agency against borrowers in South Florida.
In Segment 2, Migdal talks about the mortgage forbearance program created under the CARES Act; the current lending climate given record low interest rates and the higher-than-normal unemployment rate; and Acts of God.
In Segment 3, Migdal discusses mortgage fraud and its impact on the South Florida real estate market. Migdal also talks about how lenders are – and should be – auditing their mortgage application records right now in anticipation of a wave of defaults possibly occurring beginning in 2021. Migdal contends that lenders that are attempting to be repaid on bad loans need to expand their litigation focus outside of just borrowers.
