1.What options do I have if I end up in Foreclosure?
Here is a list of all your possible options. You need a professional to make the best choice. Call us before you are forced to make the choice which may not be the best!
- Do Nothing
- Contact attorney-Stop Foreclosure
- Reinstatement Plan
- Repayment Plan
- Loan Modification/Loan Restructuring
- Loan Refinance
- Loan Forbearance
- Partial Claim
- Pre-Foreclosure Sales
- Short Sales
- Fight the Foreclosure lawsuit
- If I do nothing, what will happen?
A default judgment will be entered, and the court can auction your property, usually within 25 to 30 days from entry of a final judgment. This is what you want to Avoid!
- What if I file bankruptcy?
A bankruptcy will stop the Foreclosure. A chapter 13 bankruptcy may allow you to make up the arrearages and reinstate your mortgage, over a period, usually 5 years. It means you make a regular payment and part payment each month until you get caught up. In a chapter 7, you will have to pay back the arrearages much quicker than 5 years, the Foreclosure will continue.
- Why try to defend against my foreclosure if I can’t afford the payments?
It is a misconception that hiring an attorney to defend your case is not a cost-effective option. Hiring an experienced lawyer can help protect your rights and save you thousands of dollars in taxes and other financial consequences.
- What is a short sale?
A short sale occurs when and if a mortgage lender agrees to accept less than what is owed on a mortgage to avoid a possible foreclosure auction or a bankruptcy filing. The seller buys the home directly from the bank for the discounted amount and the homeowner walks away. A Florida attorney experienced in representing clients in short sales and foreclosures should be consulted about tax implications of short sales as well as other possible financial ramifications.
7.Why did my mortgage lender send my payment back to me?
Banks and lenders will often refuse to accept payment for less than the total amount your account is delinquent (including late, collection & legal fees). Once a foreclosure action is started, banks will generally not accept payment for less than the total amount delinquent, including foreclosure costs and foreclosure legal fees. If your bank has refused to accept a mortgage payment, contact a Florida foreclosure defense lawyer right away to discuss your rights.
- What is a deficiency judgment?
A deficiency judgment can be filed against a homeowner by a lender who does not recover the amount owed on a loan, plus legal and collection expenses, after a foreclosure.
- How long does the foreclosure process take?
Traditionally, foreclosures in Florida have taken 4-6 months. However, depending on the case docks of the Court, it can last 1 to 5 years.
- Can I remain in my home during the foreclosure process?
Typically, yes. The home remains in your possession until a final foreclosure judgment is issued by a judge.
- Banks never make mistakes
With all the complicated laws and regulations lenders often make mistakes. Sometimes it’s the loan, other times the Foreclosure. With the “packaging” of loans, often the paperwork gets misplaced. You need an expert to help you find these mistakes, which can delay and often prevent Foreclosure.
- The Lawyers are always right.
Don’t get intimidated by the Bank’s big, fancy law firms, they make mistakes too. Our Lawyers work for you and are not overwhelmed with foreclosure cases.
- I’m in Foreclosure, no Bank will refinance me out of this Foreclosure.
If you have enough equity in your home, typically 60%-70%, specialty lenders will refinance the house to pay off the old Bank and stop the Foreclosure. Call us for help
- If I go through a Foreclosure, I can never buy a house again
From a banking point of view, Foreclosures can be viewed as one of the worst things ever on a credit report. Even so, some Banks will make you a loan very soon after a Foreclosure. Be prepared for very large down payments and higher interest rates.
- Chapter 7 bankruptcy will stop my Foreclosure and save the house
A Chapter 7 bankruptcy will stop the home Foreclosure on a temporary basis only. Eventually, you need to do something else to keep the house in the long run if you are facing Foreclosure.
- Once Foreclosure starts, you cannot settle
Just the opposite, a tiny number of cases go to auction. With the real estate market being a buyer’s market during last years, the last thing the Bank wants is to have to get its money by selling your house.
Our goal is to give you some time to:
- The knowledge to make good decisions.
- More time to explore all loss mitigation & alternatives.
- More time to negotiate a lower payment or interest
- More time to save money to reinstate your mortgage
- More time to refinance your loan
- Convince your Bank to give you more time.
- Get a loan from another source
- Sell your home
- Obtain bail out funds from U.S. Government programs.
The bank has attorneys, so should you.
Remember, “The worst thing you can do is nothing! We want to help you and we can work out a payment plan to fit your budget”.
More time to sell your home for fair price or short sale
More time to review possible bankruptcy.
- What is a Forbearance Agreement?
Depending on your situation, your bank may offer you a solution to repay your missed payments and avoid foreclosure with a Mortgage Forbearance Agreement. This agreement is made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on their payments. A Mortgage Forbearance Agreement is a temporary solution for delinquent borrowers designed for borrowers who have short-term financial problems caused by an unforeseen hardship such as health problems or unemployment.
Usually Mortgage Forbearance Agreements allow a minimum of 4 months to postpone monthly mortgage payments.
- Do I Need an Attorney to File Bankruptcy?
Although you can file for personal bankruptcy without a lawyer, it is strongly recommended to seek the advice of a professional. There are common misunderstandings and mistakes that can affect your rights.
In the case of a bankrupt business, the business can represent themselves but will need the legal assistance of a bankruptcy lawyer.
- What are the disadvantages of filing Bankruptcy?
Unless you pay in advance before filing, you will lose all your credit cards. You will also have to give up some necessities. You cannot get into a new mortgage loan for 5 years. Debts such as student loans and back taxes will not be eliminated in a bankruptcy.
- What are the good points of filing bankruptcy?
The declaration of bankruptcy will stop the collection actions of the creditors. You will not end up losing your primary residence; most states allow you to exempt your home, car and other essential needs. You will also be protected from being sued or having your car or house seized.