Temporary Stop for Foreclosure Lawsuits and Sales To Expire Soon

Many federally backed mortgage loans are currently under foreclosure moratoriums.  This means that many loan servicers are unable to file mortgage foreclosure actions against homeowners who have been unable to make their mortgage payments.  For many homeowners already in the foreclosure process, this also means that many homeowners have been spared having their homes sold at a public auction.  However, this is only temporary.  It is only a matter of time before foreclosure lawsuits and sales begin to flood the courts again.

If there is one thing we have learned after representing thousands of Florida homeowners,  it is that the sooner you get assistance from a competent law firm, the better chance you have of saving your home.  Not only that however, but you need to also choose a law firm with the tools and experience to actually save homes.  Many foreclosure defense lawyers who represent homeowners simply kick the can down the road and delay the process to try to keep you in your house temporarily.  At Loan Lawyers, we offer many services that may assist you in saving your house.

For starters, we are a team of trial lawyers.  We do not just kick the can down the road.  If we think we can win your case at trial, we are ready, willing, and able to take your mortgage foreclosure case to trial.  We also have a stellar mortgage modification department where we may be able to help you lower your interest rate and possibly the principal amount owed on your mortgage, resulting in an affordable mortgage payment.

Moreover, we also have an aggressive bankruptcy team where we may be able to save your home through repayment or the bankruptcy mortgage modification program that exists in some bankruptcy courts in Florida.

We have saved thousands of Florida homes from foreclosure and would greatly appreciate the opportunity to speak with you about your personal situation and help you craft a solution that suits your needs.  Kicking the can down the road without any other plan in place is not what you want to do if you find yourself behind on mortgage payments.

Call us right now for your free consultation so that you can get on the path of trying to save your home.  Our attorneys are standing by at 1-888-FIGHT-13, call now.

The post Temporary Stop for Foreclosure Lawsuits and Sales To Expire Soon appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/temporary-stop-for-foreclosure-lawsuits/
via https://www.fight13.com

What to Do If You’ve Been Sued for Foreclosure

There are several steps in the foreclosure process, and this complexity is part of the challenge for homeowners who end up in foreclosure proceedings. They’re just trying to figure out if they can keep their homes, and all of a sudden, they’re being sued and are up to their ears in legal documents.

This can easily become an overwhelming experience, especially if you’ve rarely or never had to deal with the legal system before.

If you’re facing a foreclosure lawsuit, your first call should be to the foreclosure defense, debt defense, and bankruptcy attorneys at Loan Lawyers. These kinds of cases are all that we do at our firm, giving us an advantage over other firms with a broader focus. We’ve helped residents from South Florida and all across the state slash their debts and keep their homes. We want to help you do the same.

For your free initial consultation, call us today or visit our contact page.

Summons Versus Complaint Versus Lis Pendens: What’s the Difference?

In Florida, most foreclosure proceedings are handled by the courts, and a judge must sign off on any foreclosure sale. Before your lender can foreclose on your home, they will have to file a lawsuit against you.

There are three primary components to any foreclosure lawsuit: the complaint, the summons, and the notice of lis pendens. Let’s break these three elements down:

• Complaint – The complaint is the portion of the lawsuit wherein your lender will outline the basics of their claim against you. This will include the terms of the mortgage, a description of the property to be foreclosed upon (such as your home), when you went into default, how much of the loan is still due, the defendants in the lawsuit (such as you and your family), etc. Your lender will also outline the relief they’re seeking from the court, namely a judgment that allows them to foreclose on your home.
• Summons – When your lender files a foreclosure suit, a summons will go out to all of the defendants listed in the complaint. Typical defendants in a foreclosure suit include the homeowners, any other occupants of the home, any lienholders, etc. The summons will also state that the defendant will have to respond if they wish to contest the lawsuit and will outline how much time they have to respond. In Florida, the typical deadline to respond to a foreclosure suit is 20 days.
• Notice of lis pendens – Lis pendens is a Latin phrase for “suit pending.” When a lender files a foreclosure suit, the notice of lis pendens goes into the property records in whichever county the suit is filed. This notice is intended to let the public know that there’s an impending foreclosure suit involving the property mentioned in the notice. The notice of lis pendens is fairly basic and usually includes a description of the property and a statement that foreclosure proceedings have been initiated.

How to Respond to a Foreclosure Lawsuit: Your Options

At the most basic level, you have two ways you can respond to a foreclosure lawsuit:

• The first option is to not give any answer to the lawsuit. If you do this, you’re essentially giving up any right to contest the foreclosure, and your lender will likely obtain a default judgment against you. Once that happens, they can move to sell your home and quickly run you out of it. If you do not wish to fight the foreclosure, though, this can be a viable option.
• The other way you can respond to a foreclosure suit is to answer the charges listed in the complaint. This is how you contest the suit. Each allegation in the complaint will be an individually numbered paragraph, and if you fight the lawsuit, it’s critical to respond to each allegation in the order that they’re listed.

For each charge, state that you admit the allegation, deny it, or that there’s not enough evidence to admit or deny the allegation. If you admit an allegation, the courts will take that allegation as fact, but your lender must prove any allegation that you deny.

Your response to a foreclosure suit also gives you a chance to offer any defenses you may have to prevent the suit from going forward. For example, you might try to argue that the lender does not own your mortgage and therefore has no standing to bring the lawsuit. Or you might try to show how the lender has not followed proper foreclosure procedure, which can sometimes lead to a suit being dismissed.

When to Call a Foreclosure Defense Lawyer

While you are not required to hire an attorney if you’re sued for foreclosure, it’s always a good idea to hire one. A foreclosure defense lawyer will know all the ins and outs of Florida’s foreclosure statutes, so they can help you mount a stronger defense.

They can also help you gather the evidence you need to support your defense and make sure your reply is filed in a timely manner. If you take too long to file your reply, your lender will obtain a default judgment and will then be able to sell your home out from under you.

Get Help from a Foreclosure Defense Lawyer Now

There’s no overstating the importance of being able to keep your home. Your family deserves safety, security, and shelter, and a foreclosure lawsuit can rip that all away from you. While it’s tempting to believe that if you don’t answer a foreclosure suit, it will just go away, the reality is that doing so will only place your family in greater jeopardy.

Instead, the foreclosure defense lawyers at Loan Lawyers are ready to work tirelessly to keep your family in your home and reduce your debts. To get started on the road to recovery, call us at today or visit our contact page to schedule your free initial consultation.

The post What to Do If You’ve Been Sued for Foreclosure appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/what-to-do-if-youve-been-sued-for-foreclosure/
via https://www.fight13.com

The Role of the Receiver in Commercial Foreclosures

The COVID-19 pandemic has been extremely difficult. Even when people are not getting sick or losing a loved one, the sad truth is that many Floridians have been worried about their business all year. Forced lockdowns and a general fear among the public related to doing things as simple as shopping or eating inside a restaurant have hit business owners extremely hard. While homeowners got some relief during the height of the pandemic, commercial business owners did not get much. As such, many of them will likely face foreclosure in the coming months.

Commercial foreclosures are similar to residential foreclosures, but they do have some differences. One of those is that a commercial foreclosure involves a receiver. It is important that business owners understand what a receiver is and the role they will play during the foreclosure process.

The Uniform Commercial Real Estate Receivership Act

Recently, Florida has adopted the Uniform Commercial Real Estate Receivership Act (UCRERA). The vast majority of commercial real estate loan documents allow for the appointment of a receiver in the event the borrower defaults on the loan. However, in Florida, the appointment of a receiver did not happen in every case prior to the adoption of the UCRERA. Instead, it was considered an extraordinary remedy that should only be used with caution, as it is an infringement of the owner’s fundamental right to possess their own property.

The role of the receiver in a commercial foreclosure is to protect the value of the property. The trial court has the discretion to appoint a receiver in a commercial foreclosure case. However, if it is not found that the property is being wasted or otherwise at risk of serious loss, it is an abuse of that discretion for the trial court to appoint one. The courts have largely followed this standard without giving any regard to the language contained within mortgage or loan agreements that provides the absolute right to appoint a receiver.

Florida did not adopt the UCRERA until July of 2020. That made the state the ninth state to enact the legislation along with Utah, Oregon, Nevada, Tennessee, Michigan, Maryland, Arizona, and North Carolina. The fact that Florida has now adopted the Act is important because the appointment of a receiver is helpful to the lender and hurtful to commercial property owners. It was the UCRERA Task Force that decided to implement this piece of law in Florida. Their reason for doing so was to provide a clear standard for appointing a receiver. Up until the law was adopted, according to the UCRERA Task Force, the standards differed from one county to the next on when a receivership was an appropriate remedy.

Potential Litigation Surrounding the UCRERA

The standard for appointing a receiver according to the UCRERA is the potential for serious risk of loss. While this is just one standard, Florida law allows for many different standards when appointing a receiver. This law states that when a property has moved into foreclosure or a lender is trying to enforce a mortgage, the court must consider a number of facts and circumstances, along with certain relevant facts, to determine if they should appoint a receiver for a property.

Those facts and circumstances include:

• Appointing a receiver is necessary to protect the property from loss, waste, or substantial reduction in value,
• The borrower agreed to appoint a receiver after they have defaulted,
• The owner agreed to appoint a receiver after the property had fallen into default,
•  Assets and other collateral held by the lender do not carry enough value to sufficiently satisfy the secured obligation,
• The owner failed to provide the lender with mortgage proceeds or rents the lender was entitled to, or
• The holder of a lien appointed a receiver for the property.

The UCRERA significantly modified the previous standards for appointing a receiver in Florida, particularly Sections 2(b) and (c). As a result, it is expected that Florida will see significant litigation in the coming months. That litigation will likely focus on whether meeting just one factor of Section 2 is enough for the courts to appoint a receiver, or if the courts will have to meet more than one standard.

The language of the law is not always clear. The Florida Statutes state that the court should consider the above facts and circumstances, along with any other relevant information. When this type of language is used, it is generally to allow judges to make their own analysis in any case. The appellate courts, on the other hand, are more likely to focus on the exact standards outlined in the statute. As such, it is crucial that loans and mortgage agreements include language that will trigger section 2(b) and 2(c) of the statute.

It is important that all commercial owners understand the adoption of the UCRERA and what it means to them. Unfortunately, commercial foreclosures are likely to increase in the coming months and the current language of the law allows lenders to become particularly aggressive until an appellate court says otherwise. It is not uncommon in commercial mortgage foreclosures for the receivership appointment to draw an end to a case, which means the business owner will likely lose the property.

A commercial foreclosure defense lawyer will attempt to expand the requirements a court must consider. A lawyer will also remind the trial judge that the language allows the judge to use their own discretion when deciding whether to appoint a receiver or not.

Our Florida Commercial Foreclosure Defense Lawyers can Help with Your Case

No one ever wants to lose their business, or lose the place their business calls home. Sadly, it is expected to happen more often in the coming months. If you are a business owner facing foreclosure, do not go it alone. At Loan Lawyers, our Fort Lauderdale commercial foreclosure defense attorneys can assist with your case. We will explain the law and how it applies to your case, and use the defenses available to build a solid defense and give you the best chance of keeping the property. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our skilled attorneys.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post The Role of the Receiver in Commercial Foreclosures appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/the-role-of-a-receiver-in-commercial-foreclosure/
via https://www.fight13.com

Do Not Avoid Bankruptcy Due to Stigma

Stigmas are very difficult to overcome, and many people believe that bankruptcy has a certain stigma attached to it. It is this perceived stigma that stops many people from taking advantage of bankruptcy and the protection it provides. Bankruptcy, however, is a right provided by the U.S. Constitution. Hundreds of thousands of people realize the benefits bankruptcy brings every year. While there are some stigmas that go along with bankruptcy, they may not be as bad as you think, and a stigma is certainly no reason to put off filing bankruptcy and starting over with a clean slate.

The Social Stigma

The social stigma of filing bankruptcy is often the most concerning for people. Money is an uncomfortable topic for many, and it is very difficult to admit to your friends and loved ones that you have fallen into financial hardship. If it is this social stigma that has kept you from filing, you should know there is little chance people will find out unless you tell them.

Bankruptcy cases go through the court and so, they are a matter of public record. However, very few people go searching through these records just to determine if someone has filed bankruptcy. While your creditors will know that you have filed bankruptcy, no one else will.

If you do feel comfortable enough telling someone you have filed bankruptcy, you may be surprised to learn just how understanding they are and how common it is. Some studies have shown that approximately one in 10 people will file bankruptcy at some point in their life. Someone you know may have already filed bankruptcy and so knows how difficult it is, but that it can also provide a fresh start.

The COVID-19 pandemic has placed millions of people into financial hardship and so, bankruptcies will only become more common in the coming months and years. If you are thinking about filing for bankruptcy, it is important to know you are not alone.

The Emotional Stigma

Although the U.S. Constitution provides the right for people to file bankruptcy, many still feel guilty when they do. Most people want to pay their bills and hate being in debt. They may view bankruptcy as a last resort, and confirmation of the fact that they are financially irresponsible. This is a very difficult stigma for people to wrestle with as they consider bankruptcy.

Guilt is never a pleasant emotion to deal with. That being said, circumstances are not always in your control and while bankruptcy should be used as a last resort, people often end up filing through no fault of their own.

No one could have foretold the pandemic that is currently sweeping the globe. It is placing even the most financially responsible people under a great deal of strain. What’s more, many people file as a result of medical debt or other unforeseen circumstances. Do not feel guilty about filing, and remind yourself you will get back on your feet in the near future.

The Financial Stigma

The financial stigma of bankruptcy is the only one that will have a real impact on you. Once you have filed for bankruptcy, your credit score will drop. How many points your score drops by will depend on what your credit score was prior to filing bankruptcy. The credit scores of people that file for bankruptcy usually tend to hover around the 550 level, regardless of their previous score. However, being prudent and responsible will help you increase your score over time.

The drop in your credit score may make things financially difficult for you at first. For example, you may have difficulty obtaining a loan or a credit card. However, this is not always the case either. It is not uncommon for creditors to offer credit cards to people who have just filed for bankruptcy. This is because they know the borrower cannot file bankruptcy for at least another eight years, so there is little chance they will end up writing off the debt. Also, because of the hit to the borrower’s credit score, a creditor can offer those credit cards at much higher interest rates.

It is true that filing bankruptcy will come with a bit of a financial blow, so this stigma is very real. However, like so many other stigmas, this one is likely not as bad as you are thinking, either.

Considering the Benefits

While there are stigmas associated with bankruptcy, whether real or perceived, it is better to focus on the benefits if you are having financial difficulties. The bankruptcy system was put into place by the federal government to ensure the financial system did not collapse. It provides a way out for borrowers so they do not have debt hanging over them for the rest of their lives.

Using the system as it was intended holds many benefits. Mainly, it allows you to discharge your debt and start again financially. Immediately after you file bankruptcy, an automatic stay is placed on all forms of debt collection and creditors and debt collectors can no longer contact you or continue pursuing the debt. That means you realize the benefits of filing for bankruptcy immediately.

Bankruptcy is also a relatively quick process. A Chapter 7 bankruptcy will take approximately four to six months. Chapter 13 bankruptcies will typically take three to five years before the case is officially over, however, much of that time is spent repaying debt.

Our Florida Bankruptcy Lawyers Can Help with Your Case

The pandemic has pushed millions of people in Florida into financial hardship. If you have been affected and are thinking about filing, call our Fort Lauderdale bankruptcy lawyers today. At Loan Lawyers, we know the benefits of filing and will help you through the process so you realize all of them. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our skilled attorneys and to learn more.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post Do Not Avoid Bankruptcy Due to Stigma appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/do-not-avoid-bankruptcy-due-to-stigma/
via https://www.fight13.com

8 Reasons to Hire a Foreclosure Defense Lawyer

After receiving a foreclosure notice, you may think there is nothing to do except wait until the bank forces you out of the home. You may not even think about hiring a Florida foreclosure defense lawyer or realize how much a lawyer could help you. Truthfully, there are many ways a foreclosure defense lawyer may help with your case and the sooner you speak to one, the better chances you will have of a successful outcome. While there are many reasons to hire a foreclosure lawyer to help with your case, the eight main reasons are listed below.

1. An Understanding of the Law

   Without a lawyer, your lender may have violated the law or infringed on your rights and you may not even know it. There are many different laws outlining what actions are and are not legal for a lender to take. The Florida Fair Lending Act and Service Members Civil Relief Act are just two of these. A foreclosure defense lawyer will understand these laws, as well as when the lender has broken them, and can use this as a defense to help you keep your home.

2. An Understanding of the Process

   When facing foreclosure, there are many forms you will have to obtain, fill out, and submit within a certain deadline. You also have only 20 days from the date you receive the foreclosure notice to respond to the complaint. Many homeowners are not aware of the process or what it entails and that lack of knowledge can significantly hurt your case. A foreclosure defense lawyer will know the process because they deal with it every day and can advise on what to expect.

3. They Will Review Your Case for Free

   If you are facing foreclosure, it is likely due to the fact that you fell into hard times financially. You may not think that you can afford to even speak to a lawyer, never mind have one help you through your entire case. However, most foreclosure defense lawyers will review your case free of charge and offer legal advice to help with your case. The right attorney for your case will also always be straightforward and upfront about the costs and fees you will incur throughout your case.

4. Avoid the Rocket Docket

   Florida has been one of the hardest-hit states for foreclosures since the housing crisis in 2008. Florida is a judicial foreclosure state, meaning that lenders have to take homeowners to court so a judge can approve the foreclosure. Combined, these facts have meant that the courts are always backlogged with foreclosure cases. As a result, certain courts attempt what is known as a rocket docket.

   A rocket docket is a way to accelerate the foreclosure process for homeowners that do not have legal representation. This process can result in losing your home in as little as 60 to 90 days. However, if you work with a foreclosure defense lawyer, you can delay that time up to 12 months, or even remain in your home permanently.

5. Help You Seek a Loan Modification

   Just because a lender has started the foreclosure process does not mean you are out of options. When you start early, you may be able to work with your lender and come to an agreement that will allow you to stay in your home. One of these is a loan modification. Through a loan modification, you can change many different terms of your loan including the interest rate, the length of the loan, and even the principal of the loan. These modifications can make it easier to pay your mortgage and stay in your home.

   Loan modifications are not easy to obtain, and lenders must agree to them. A foreclosure defense lawyer will negotiate with the lender and draft a hardship lender to convince the lender to agree to a loan modification.

6. Avoid Dual Tracking

   If you are successful and your lender agrees to a loan modification, the lender has an obligation to stop the foreclosure process. Unfortunately, too many lenders do not abide by this and they continue on with the foreclosure even as they accept the payments made for the loan modification. This is known as dual tracking and it is against the law. A foreclosure defense lawyer will identify when it is happening, put a stop to it, and ensure the lender is upholding your rights.

7. Help with the Bankruptcy Process

   There are times when a homeowner’s only defense to foreclosure is filing for bankruptcy. While a Chapter 7 bankruptcy will likely result in you losing your home anyway, a Chapter 13 bankruptcy can help you restructure your mortgage so it is more affordable for you to pay. This is a very good alternative for some homeowners, but the bankruptcy process is not easy. One small mistake could affect your chances of successfully filing, but a foreclosure defense lawyer will ensure those mistakes do not happen. A lawyer will advise on which type of bankruptcy is right for you, and help you navigate the process to give you the best chance of success.

8. Prepare an Exit Strategy

   You may think that if the bank is successful in foreclosing on your home, the only thing there is for you to do is to vacate it. However, a proper foreclosure exit strategy involves much more than that. A proper exit strategy involves defending you against a deficiency judgment for the balance remaining on the mortgage, which could lead to wage garnishment or other hurtful actions taken against you.

Call Our Florida Foreclosure Defense Lawyers Today

Facing foreclosure is one of the most challenging experiences a homeowner will ever go through. If you are behind on mortgage payments, or your lender has already started the foreclosure process, you do not have to go through it alone. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys are here to help. We know how to defend against these cases and will give you the best chance of staying in your home. Call us today at (954) 807-1361 or contact us online to schedule a free consultation.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post 8 Reasons to Hire a Foreclosure Defense Lawyer appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/8-reasons-to-hire-a-foreclosure-defense-lawyer/
via https://www.fight13.com

Debt Buyer vs. Debt Collector: What is the Difference?

Lenders use debt collectors and debt buyers to both relieve themselves of bad debts and so that they can write off debt, which is a liability for them. Many borrowers do not realize there are many differences between debt buyers and debt collectors. Debt buyers purchase old debts from creditors and other companies for a small percentage of what the original lender is owed. Debt collection, on the other hand, is the act of contacting the borrower and making arrangements for them to repay the debt.

If you have borrowed money from a creditor, you will typically only work with that company if you continue to make your payments on time. When the loan goes into default, that relationship between you and the creditor is in jeopardy. At some point, the original creditor will deem it unworthy to continue pursuing the debt and will sell it to someone else. This is where debt collectors and debt buyers come in, and it is important to understand the difference.

The Roles of Debt Buyers vs. Debt Collectors

Most individuals are familiar with debt collectors. They are the individuals who call, sometimes incessantly, trying to collect a debt on behalf of a creditor or other company. On the other hand, debt buyers represent businesses that buy debts from other companies and then attempt to collect on those debts. Debt buyers are sometimes also collection agencies that collect on debts they have bought from another company, or they may give or sell those debts to another debt collection company.

After a creditor has sold the debt to a debt buyer, there is little you can do. From that point on, you will have to work with the debt collector and will no longer be able to work with the creditor or original lender.

Debt Collectors Do Not Pay the Whole Amount

Companies that buy debts from other companies do not pay very much for them. Usually, debt buyers purchase a debt for only pennies on the dollar. For example, they may purchase a $1,000 debt and pay only $50 for it. When borrowers pay the debt in full, then, the debt buyer has made $950 from the debt. Debt buyers also do not only purchase one or two debts from creditors. They purchase hundreds of them, providing them with even more opportunities to make a profit. Even if only a small percentage of borrowers repay their debts, the debt purchaser can still turn a profit because they have spent so little when buying the debt.

The Effect on a Borrower’s Credit Score

After debt buyers purchase debt from creditors, they can report the debt to the credit bureaus. The main three bureaus include TransUnion, Equifax, and Experian. After the debt buyer has reported the debt, it will remain on the borrower’s credit report for the entire credit reporting period and the borrower’s credit score will be negatively affected.

Making payments to a debt buyer does not remove the account from the borrower’s credit report. However, every payment the borrower makes will be added to the report, which can improve the credit score over time, as long as the borrower is timely with other payments they owe.

Due to the fact that debt buyers have purchased the debt for such a small amount, it is sometimes easier to settle a debt for less than the balance on the account. Borrowers can pay only a fraction of the debt and, because debt buyers are still likely to make a profit, they are much more agreeable to settle for less. It is for this reason that when debt buyers contact a borrower about a debt, it is sometimes very worthwhile to settle for paying a smaller amount than the full balance.

The Statute of Limitations on Debt

It is crucial for all borrowers to understand the statute of limitations and what it means for their debt. The statute of limitations is the amount of time debt collectors and buyers have to collect on the debt. While debt collectors may attempt to collect on a debt after the statute of limitations has expired, they cannot take legal action associated with it. This means that they cannot file a lawsuit against the borrower or take action against them such as garnishing their wages or seizing their bank account.

While the statute of limitations often provides borrowers with a great deal of protection, there are times when a borrower may inadvertently start the statute of limitations again. For example, even entering into a payment agreement can extend the statute of limitations. Instead of the statute of limitations expiring soon, a new payment agreement may restart the clock, meaning that debt buyers and collectors have another five years to take legal action against the borrower.

How to Tell if a Debt Has Been Sold

Creditors do not have any obligation to tell borrowers when their debt has been sold. If you have an outstanding debt with a creditor, you may not realize that it has been sold until the debt buyer contacts you. Before paying the debt though, it is important to ask the debt buyer or collector to verify the debt. This is a right you have under the law and if they cannot verify that the debt is rightfully theirs, they have no right to collect on it. They also do not have the right to report the debt to the credit bureaus so it cannot negatively affect your credit report.

Has a Creditor Taken Legal Action? Our Florida Debt Defense Lawyers Can Help

If a creditor, debt collector, or debt buyer has taken legal action against you, it is critical that you speak to a Fort Lauderdale debt defense lawyer as soon as possible. All of these companies have the ability to garnish your wages, seize your bank account, or more if they are successful with their lawsuit. At Loan Lawyers, we know the defenses to these lawsuits and will use them to give you the best chance of a favorable outcome. Call us today at (954) 807-1361 or contact us online to schedule a free consultation.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post Debt Buyer vs. Debt Collector: What is the Difference? appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/debt-buyer-vs-debt-collector/
via https://www.fight13.com

As Fear of Foreclosure Increases in Florida, Here are Ways to Stop It

The Household Pulse Survey, which has been conducted by the U.S. Census Bureau, shows that seven percent of households in Florida are behind on their mortgage and rent payments. The Census Bureau has been taking the survey at various times during the pandemic since it first broke out nine months ago. Of that seven percent, over half of respondents, 51.2 percent, say that they fear eviction or foreclosure, which is the worst percentage in the entire country.

The survey has a margin of error of 13 percent. That means the actual percentage could be as low as 38 percent or as high as 64 percent. Either way, it is a large increase from the 32 percent that said they feared eviction or foreclosure in the previous survey.

Clearly, many households in Florida are in trouble. Fortunately, there are still options for homeowners, and ways to possibly stop a foreclosure.

Federal Moratorium on Foreclosures

It was in April when Governor DeSantis issued a statewide moratorium on foreclosures and evictions. In early October when DeSantis allowed that order to expire, it meant that thousands of Florida homeowners faced the real fear of losing their homes. For homeowners with federally-backed mortgages, however, there is still hope.

In late August, the Federal Housing Finance Agency (FHFA) extended the federal moratorium on Enterprise-backed mortgages. This moratorium applies only to single-family mortgages backed by Fannie Mae and Freddie Mac, otherwise known as the Enterprises. The moratorium was originally set to expire on August 31, 2020. Now, the moratorium has been extended until December 31, 2020, and it may even be extended again in the future.

While the federal moratorium will protect over 28 million homeowners around the country, including many here in Florida, it will not protect everyone. Homeowners without a federally-backed mortgage that are in fear of foreclosure should understand there are still ways to stop it.

Unclean Hands

Florida is a judicial foreclosure state, which means to foreclose on the property, lenders must file a lawsuit. The case will then go to trial, which is heard by a judge without a jury. At the trial, you can raise a number of defenses that can stop the foreclosure. One of the defenses available is that the lender has “unclean hands.”

Florida case law Federal Savings and Loan v. Robert Smith shows that when a lender has unclean hands, the judge must deny the foreclosure action. To prove that a lender has unclean hands, you must prove that the lender engaged in an illegal or fraudulent transaction, or an unconscionable or oppressive act. For example, if the servicer did not allow you to repay your mortgage payments, that could be considered tortious interference, which can prove unclean hands. You must also prove that the act caused you harm.

Proving unclean hands is sometimes challenging, and proof is required if you are making such a claim. A foreclosure defense lawyer will understand the necessary evidence to collect that can prove unclean hands.

Lack of Notice of Default

In Florida, lenders are required to provide homeowners with a notice of default, and the action required by the homeowner to correct it. Usually, the requirement is found in the 22nd paragraph of the mortgage agreement. The lender must typically send the notice of default at least 30 days prior to starting foreclosure proceedings. The notice must also state the action required by the homeowner to stop the foreclosure.

Borrowers can raise the defense that the notice of default was never received. When they do, the lender then has the burden of proof of showing that they sent the appropriate notice.

Failure to Fill All Conditions Precedent

In a mortgage contract, each side has obligations to the other. The borrower has an obligation to pay mortgage payments on time to the lender, but the lender also has several conditions to meet. Failing to provide homeowners with the notice of default is just one of these conditions, but there may be others, as well. When lenders do not meet all of their conditions, it can serve as a defense to a foreclosure action.

Chapter 13 Bankruptcy

No one ever wants to face bankruptcy, but it can offer a real solution to a foreclosure action. If you file for Chapter 7 bankruptcy, you may still lose your home. The bankruptcy trustee will sell some of your assets to help repay the lenders you still owe. Although a portion of your home’s equity may be exempt, you may still lose your home.

A Chapter 13 bankruptcy, on the other hand, may allow you to keep your home. In this type of bankruptcy, the debts you have incurred are restructured into a payment plan that is more manageable for you. Usually, the plan extends for three to five years, during which time you repay your debts. If you are struggling with other types of debt, such as credit cards or auto loans, you can also restructure these during a Chapter 13 bankruptcy.

Although you are not required to work with a bankruptcy lawyer, it is important that you do. The bankruptcy process is not always a quick one, and even a small mistake could forfeit your right to file bankruptcy. A lawyer will ensure no mistakes are made, and that the repayment plan is as affordable as possible.

Our Florida Foreclosure Defense Lawyers Know How to Stop the Process

Floridians have been hit hard during the pandemic and it is the new reality that more homeowners are facing foreclosure than in recent years. If you are in fear of losing your home, our Fort Lauderdale foreclosure defense lawyers can advise on your case.

At Loan Lawyers, we can determine if your lender has taken the appropriate actions and when they have not, will use that defense to help you save your home. We will also advise on other foreclosure defenses that may apply to your case. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our experienced attorneys.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post As Fear of Foreclosure Increases in Florida, Here are Ways to Stop It appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/ways-to-stop-foreclosure-in-florida/
via https://www.fight13.com

How to Budget for the Holidays

The holidays are upon us and while they may look very different during the pandemic, people still want to find ways to celebrate with their loved ones. Budgeting for the holidays is never easy, but just like everything else in 2020, it brings unique challenges during the pandemic. A survey conducted by WalletHub shows that residents of Fort Lauderdale, FL should not spend more than $1,199, and even that figure seems out of reach for many. Below are some tips that can help you budget for the holidays, and come away from them without breaking the bank.

Understand Your Spending Limit

If you do not know how much you can reasonably afford to spend on holiday gifts, you will not know that you have gone over that limit until it is too late. While WalletHub is recommending that Fort Lauderdale residents do not spend more than just under $1,200, many people this year will not be able to budget even that amount. Determine the expenses you will have to pay during the holidays, including your mortgage, rent, and other expenses, and how much you have leftover to spend. Keep that number in mind when you are buying presents, and do not go over it.

Create Categories

People are often surprised at just how many gifts they purchase over the holiday season. It is natural that people would first think of their friends and loved ones that they want to buy for, but there are likely others, as well. You may want to purchase a small gift for a teacher, a newspaper carrier, or someone else that you want to acknowledge.

Think about everyone in your life that you want to purchase gifts for, and then separate them into categories with spending limits for each category, or for each person. Remember, the total number you are left with should not exceed your spending limit, but breaking that limit down can help you understand how much you have to spend on certain people or items.

Shop Early

Usually, people are advised to shop early for the holidays in order to avoid long lines. While those may not even be a possibility in some areas this year, it is perhaps even more important to shop early. Many people will use online shopping services these holidays, and delivery systems will become overwhelmed as they try to get packages delivered. To avoid rush delivery fees that will increase your holiday budget, shop early so your gifts arrive on time without any additional expenses.

Do Not Buy for Yourself

Most shoppers will purchase something for themselves while they are hunting for the perfect gift for others. This is easy to do regardless of whether you are in a mall and see something unexpected, or if you are searching for the right gift online. Just over half of consumers spend approximately $200 on themselves while shopping for other people. Know what you are looking for before going online and keep your purchases to that item only and resist the temptation to buy yourself that little something you may want.

Secret Santa

Secret Santa is always a great way to help a lot of people save money at the same time. If you have a large group of family members or friends, agree to choose a secret Santa, so that each person only buys for one other. When just focusing on purchasing one gift, it is easier to put real thought behind it, and you may even be able to spend a little more on that one gift. Still, you can take this idea up another level if everyone agrees to a spending limit.

Use Coupons

Using coupons may sound like an outdated idea, but shopping online makes it easier than ever. Websites such as Groupon, Hip2Save, and RetailMeNot all offer discount codes you can enter into online shopping sites and save money easily. Apps can also make it easy to learn when new discounts are available and get even more savings.

Remember it Is the Thought that Counts

It is easy to get wrapped up in the idea of purchasing our loved ones something extravagant that they would never buy for themselves. This is a mistake every year though and this particular year, smaller and more thoughtful gifts are likely going to be even more appreciated. Something as simple as a small gift card for groceries, or a batch of homemade brownies may be all that is needed to make someone’s day, and you will save your budget at the same time.

Do Not Use Credit Cards

Unfortunately, the big-spending on holiday gifts does not end once you leave a store or website. January is always a difficult time for people, as this is when the credit card bills start coming in and people have to face their holiday debt head-on. To avoid the downward spiral of debt that credit cards can lead to, and the impending judgments and wage garnishments that come with them, simply do not use your credit cards.

Before shopping, check the categories within your budget and withdraw enough cash to pay for the ones you are about to purchase. Using only that cash will ensure you do not go over your budget. If you are shopping online, try to use a debit card instead of a credit card, so you can use only what is in your bank account and not rack up immense debt.

Call a Florida Debt Defense Lawyer if a Collector Takes Action

Budgeting is important during the holidays, but many will still find themselves struggling with debt afterward. If you are suffering from debt and a debt collector has threatened to take legal action, call our Fort Lauderdale debt defense lawyers today. At Loan Lawyers, we know the actions debt collectors are allowed to take, what they are prohibited from doing, and the defenses to debt-collection lawsuits. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our experienced debt defense attorneys.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post How to Budget for the Holidays appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/how-to-budget-for-the-holidays/
via https://www.fight13.com

How to Get Out of Debt During a Pandemic

The COVID-19 pandemic has put over 30 million Americans out of work, and many of those individuals were already struggling with debt before the pandemic hit. Debt can sometimes actually be a good thing, as it allows people to purchase homes, vehicles, and other necessities of life. However, when you incur too much debt, debt can become debilitating and that is not good for anyone. If you are trying to get out of debt during the pandemic, below are some tips that can help.

Identify Your Most Important Bills

Unfortunately, there are some bills you simply cannot get rid of. One of these is your mortgage. If you stop paying your mortgage, you may face foreclosure and end up being evicted from your home. The state government has already lifted the moratorium on foreclosures, so this continues to be one of the most important bills to pay. Also, make sure you continue to pay your utilities so you can continue to have service to your home, and do your best to keep up with any auto and insurance payments you may have. These, as well as any other expenses that are a priority for you, are must-pays and if you do not make the payments, you could find yourself worse off.

Consider the “Leaky Faucets” of Your Budget

You may have expenses that are quite obvious to you, such as your mortgage and utilities. While these are important expenses that should be among your priorities, there are likely some expenses you have not yet recognized. Perhaps that is a subscription that you are no longer using, or the coffee you are purchasing from that expensive cafe once or twice a day. Consider all of the items you pay for on a daily basis and then eliminate the ones that are not absolute necessities.

Create a Budget

Budgets are boring, but they are also very necessary. Using a full quarter of the year, track what you are spending and what you are spending it on. Once you have a full budget in place, it is easy to see how you are spending money, and what you can scale back on. Also, make sure to include within your budget your credit card bills, and the minimum payments you are expected to make every month. When finished, your budget will give you a snapshot of how much money you will have at the end of the month to spend on extras. As long as you do not go over that amount, it will help you get out of debt even faster.

Understand the Types of Debt Repayment

Any debt repayment expert you speak to will likely have advice on how to repay your debt. Generally speaking though, there are typically two main methods:

• The first is the debt avalanche method, which the majority of debt repayment experts recommend. When paying debt using this approach, you focus on the debt with the highest interest rate first. You continue to pay the minimum balance on all other debts, so you do not face wage garnishment or other penalties for not repaying debt, but your priority remains on the highest interest debt. Pay off as much of that as you can, including going above and beyond the minimum payment. Once that debt is repaid, you then focus on the debt with the second-highest interest rate and continue on from there.
• The second method of debt repayment is the snowball approach. Contrary to the avalanche method, when using the snowball approach you focus on the debt with the lowest interest rate while still continuing to make minimum payments on all other debt. While the snowball method will not help you save money in interest, as the avalanche approach will, it can provide you with the momentum necessary to stay motivated to keep paying off your other debts.

Both methods work and are very effective if you can stick to them. You just have to decide which one will work best for you.

Use Money Management Apps

You may have gotten used to thinking that your cell phone does nothing but cost you money. However, there are ways in which your phone can help save you money, too. Certain apps can help you with money management, such as GoodBudget, Unsplurge, and Mint. Certain credit card companies also have apps that can help you track all of your spendings without a charge, which can help with your budget.

Another way apps can help you save money so you can pay off your debt is to download apps that offer discounts, coupons, and money-saving tips. Whether these savings are available right in your community or online, you can use the money you save to pay down your debt.

Call Your Creditors

Your creditors might be the last people you want to talk to, particularly when you owe them a significant amount of money. Still, it is important that you do, especially when the amount you have is substantial. Many borrowers are surprised to learn that their creditors are very willing to work with them, and many have shown to be very forgiving during the pandemic.

Thanks to the CARES Act, many creditors are required to provide you with options such as a reduction in interest rates and payments, and you may even be able to make partial payments or get an extension on a payment. In addition to learning about these options, speaking to your creditors will also give you a better idea of what debt you should focus on first.

Call a Debt Defense Lawyer in Florida for Help

Sometimes, borrowers take all the necessary steps to reign in their debt, but it is just not enough. Soon, they find that they are facing legal action from creditors. If you are facing a lawsuit over your debt, our Fort Lauderdale debt defense lawyers can help. At Loan Lawyers, we know the defenses to these lawsuits and we will use them to give you the best chance of a positive outcome with your case. Call us today at (954) 807-1361 or contact us online to schedule a free consultation and to learn more about how we can help.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations.

Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post How to Get Out of Debt During a Pandemic appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/get-out-of-debt-during-a-pandemic/
via https://www.fight13.com

8 Bankruptcy Myths Exposed

No one ever wants to file bankruptcy but, in some cases, it can provide real relief from crushing debt. One of the reasons people are sometimes so hesitant to file is because they believe the many myths surrounding bankruptcy. Here we break down those myths and expose the truth behind them so that anyone considering filing for bankruptcy will know the realities behind the process and how it can help.

1. People Who File Bankruptcy Are Financially Irresponsible

It is easy to think that people have to file bankruptcy simply because they spent too much and do not know how to properly manage their money. The truth of the matter is, though, that the three main reasons for bankruptcy are job loss, divorce, and severe illness. These are things that are not in a person’s control and that have nothing to do with a person being financially irresponsible.

2. Married Couples Must File Together

Contrary to what many people think, married couples do not always have to file bankruptcy together, although there are times when it makes sense that they do. When married couples file bankruptcy together, an assumption is made that both people are liable for the debt. It is common though, for one spouse to have incurred a great amount of debt while the same is not true for their partner. When that is the case, the couple does not have to file bankruptcy together. On the other hand, when the couple has incurred debt together and they are both liable for it, it does make sense for the couple to file together.

3. Bankruptcy Will Ruin Your Credit Forever

There is no doubt that bankruptcy will affect your credit at least temporarily. After filing bankruptcy, it will stay on your credit record for seven to 10 years, although most of the time it is the lesser of those two time periods. It is imperative to understand that bankruptcy will never remain on your credit report permanently. Even though bankruptcy will remain on your credit record for years, there are still things you can do to improve it. For example, in the months following bankruptcy, you can apply for secured credit cards that can help improve your credit score, even though the bankruptcy may still show.

4.You Should Make Large Purchases Before Filing

A Chapter 7 bankruptcy allows the court to discharge certain debt, which means borrowers are not responsible for repaying it. Due to this, many people think that they should make large purchases, or several small purchases, right before they file. Unfortunately, the banks will likely consider this fraud and any debt incurred through fraud will not be discharged as part of the bankruptcy process. Never go on a shopping spree prior to filing bankruptcy, as it will only hurt you during your bankruptcy case.

5. All Debt Is Discharged in Bankruptcy

It is true that bankruptcy can be looked at as a clean slate, but that does not necessarily mean it will not still have black marks on it. Filing Chapter 7 bankruptcy will discharge most unsecured debts, including credit card charges, utility bills, and personal loans. However, not all debt will be discharged during the bankruptcy process.

If you file for a Chapter 13 bankruptcy, on the other hand, you may not have much of your debt discharged at all. Instead, your debts will be restructured during the bankruptcy process so it is easier for you to pay them back.

6. A Person Will Lose Everything in Bankruptcy

It is true that when filing bankruptcy, a person does stand to lose certain assets. The bankruptcy trustee will seize these assets and liquidate them in order to pay at least a portion of the debt back to creditors. Still, filing bankruptcy does not mean you will lose absolutely everything.

Bankruptcy allows for some exemptions, which are as follows:

• Homestead exemption: A home is fully exempt from bankruptcy proceedings unless you have paid the mortgage in full within the past 1,215 days. When that is the case, the exemption is limited to approximately $160,000 of equity.
• Automobile exemption: The automobile exemption allows for up to $1,000 of equity to remain exempt.
• Personal property: Tangible and intangible property including bank accounts, cell phones, jewelry, and more have an exemption limit of $1,000. If you do not own your home, the exemption limit can be as high as $5,000.
• Retirement accounts: Retirement accounts have a very high exemption level of up to $1,000,000.

In addition to these exemptions, wages are exempt if you are considered the head of your household.

7. You Will Not Lose Anything in Bankruptcy

Just as some people think they will lose everything in bankruptcy, others think they can file bankruptcy and not lose anything. Unfortunately, that is not true. Again, to pay creditors in a Chapter 7 bankruptcy, the trustee will attempt to liquidate certain assets. Due to this, you will likely lose at least some of your assets after you file bankruptcy. On the other hand, if you file a Chapter 13 bankruptcy, you likely will not lose anything in bankruptcy because your debts are restructured so that you can pay at least a portion of them back, if not all of them.

8. You Do Not Need a Florida Bankruptcy Lawyer to File for Bankruptcy

Technically speaking, you are not required to work with a Fort Lauderdale bankruptcy lawyer when filing for bankruptcy. However, it is always recommended that you do. Without proper representation, you may file for the wrong type of bankruptcy, incorrectly cite proper exemptions, or be unable to defend against an action that seeks to deny the discharge of your debts.

If you are struggling with debt and need relief, our skilled attorneys at Loan Lawyers can help. We have helped thousands of people successfully file for bankruptcy and can advise on the best type of bankruptcy for your case. If you are denied a discharge, we will also defend against it and always give you the best chance of success. Call us today at (954) 807-1361 or contact us online to schedule a free consultation and to learn more about how we can help.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations.  Contact us for a free consultation to see how we may be able to help you.

The post 8 Bankruptcy Myths Exposed appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/8-bankruptcy-myths-exposed/
via https://www.fight13.com

Can Cavalry SPV I, LLC or Any Other Debt Collector Contact Me for a Past Due Debt?

Have you received an email from Cavalry SPV I, LLC or any other Cavalry related company stating that you are collections with their company?  Have they emailed someone else you know disclosing that you are collections with them?  If so, please contact Loan Lawyers right away for your free case evaluation.  Cavalry SPV I, LLC or another Cavalry related company may have violated the law in sending that email to you.  They may have also violated the law by sending emails to others about you.

The Fair Debt Collections Practices Act (FDCPA) protects consumers who are behind on debts and prohibits Cavalry SPV I, LLC and all other debt collectors from disclosing to third parties that you have any sort of debt.  At Loan Lawyers, LLC we sue Cavalry and other debt collectors for violating the FDCPA.  If Cavalry or any other debt collector has informed third parties that you have a debt, we may be able to sue them for you in state pf federal court for violating the FDCPA.  When we take these cases, they are handled on a contingency fee basis, meaning there are no attorney’s fees or costs in the event we do not obtain a recovery for you.  Just because you may have a past due debt does not mean that you do not have rights.  If those have been violated, you can sue Cavalry or any other debt collector for violating those rights.  The fact that you are past due on a debt does not change that fact.

If we file a lawsuit on your behalf for an FDCPA violation, you may end up with compensation for damages and your attorney’s fees paid, plus the debt may be wiped out and removed from your credit report.  Call Loan Lawyers today for your free case evaluation if you have been contacted by Cavalry SPV I, LLC or any other debt collector regarding a past due debt.

Call us now at 1-888.FIGHT-13 to speak with one of our attorneys.

The post Can Cavalry SPV I, LLC or Any Other Debt Collector Contact Me for a Past Due Debt? appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/debt-collectors-disclosing-debt-information/
via https://www.fight13.com

Increase in Commercial Mortgage Delinquencies and How We Can Help

Since the beginning of the pandemic, the news headlines have placed a focus on the increase of foreclosure actions throughout Florida and the rest of the country. While the stories have largely focused on residential foreclosures, commercial properties have also fallen into mortgage delinquencies at an increasing rate. Unlike residential homeowners, owners of commercial properties have not received the same kind of assistance to help them avoid foreclosure. This makes it even more important for commercial property owners to understand their options, and how a commercial foreclosure lawyer can help.

The News on Commercial Foreclosures

It was in early September when the Mortgage Bankers Association released two reports surrounding the increase of commercial mortgage delinquencies. While the number of delinquencies is not at the height it was at the beginning of the pandemic, it is still at a level much higher than it was before the pandemic began.

Certain types of properties, namely lodging and retail properties, have been hit particularly hard. This is likely because, throughout the pandemic, people have been sheltering in place at home. Even when the shelter-in-place orders were lifted in places like Florida, people still feared the virus, causing them to continue staying at home and go out as little as possible.

The most troubling statistics from the report are as follows:

• 6 percent of mortgage balances pertaining to commercial and multi-family properties were current at the end of August. While that seems like a positive number, it was a slight drop from July, when 93.8 percent of these mortgages were current, and the 93.7 percent of current mortgages in June.
• In August, the amount of commercial loans on lodging in default was at 23.4 percent, which was a slight increase from the 26.2 percent of delinquent mortgages on these properties in July.
• Retail properties saw an increase in delinquencies in August, rising to 15 percent from the 13.9 percent in July and 14.7 percent in June.
• Mortgages that were current on industrial properties dropped slightly in August to 96.7 percent, from the 98.3 percent in July.
• More commercial mortgage-backed securities also saw an increase in delinquencies in August, dropping to 12.6 percent from 12 percent in July, but increasing slightly from the 12.9 percent in June.

Even with the statistics showing that delinquencies rose on commercial properties throughout the summer, fewer property owners are trying to find help. The reports also showed:

• Only 0.7 percent of property owners asked about relief pertaining to their commercial mortgages in August. That was a significant drop from 0.9 percent in July, 1.6 percent in June, and a significant percentage of six percent in May. In April, 12.8 percent of commercial property owners asked for relief.
• Formal requests for adjustments to loan balances also fell to 0.4 percent in August, a drop of 0.7 percent in July, 1.3 percent in June, 4.1 percent in May, and seven percent in April.
• Servicers also made modifications on loan balances, or offered forbearances at a lower rate than they did at the beginning of the pandemic. In August, servicers offered adjustments or forbearance on 1.4 percent of loans, a change from 1.6 percent in July, 1.3 percent in June, 1.9 percent in May, and the lowest of all months, 1.1 percent in April.

It is deeply concerning that at a time when commercial property owners are facing an increase in mortgage delinquencies, fewer of them are asking for help and even fewer lenders and servicers are offering much-needed assistance.

Commercial Foreclosure Defenses Are Available

Like residential properties, you likely have many options available if you fear your commercial property will soon fall into foreclosure. If your commercial mortgage is currently underwater, it is important to speak to your lender as soon as possible, as waiting to contact them could limit the number of options available. The options you may have are outlined below.

• Refinancing: If your lender is willing to negotiate with you, it may be possible to refinance your mortgage. Commercial mortgages vastly differ from residential mortgages. A variable interest rate may be the reason you are struggling, or the loan may have matured and a balloon payment is now due. When you can no longer afford your mortgage, your lender may be willing to refinance the debt.
• Bankruptcy: Many commercial property owners think that when they file for bankruptcy, they will lose the property. Fortunately, that is not always the case. Filing bankruptcy may place a stay on any foreclosure proceedings you are facing. Additionally, bankruptcy can also help you restructure the debt associated with your business, making it easier for you to make your mortgage payments on time and bring a defaulted loan into good standing.
• A personal guarantee: It is not uncommon for a business to fall into financial difficulty that is only temporary, particularly during a pandemic. If this is the case, a personal guarantee that uses your own personal property or financial accounts as collateral can also help save you from foreclosure.

In addition to these options, there are also several defenses available to commercial foreclosure. The lender may have missing, falsified, or incorrect documentation, or other bank errors may have occurred that make a foreclosure action invalid. Sometimes, lenders will also act unfairly or fraudulently and that can also provide a defense to foreclosure. These defenses typically require skilled negotiation, so it is always important to speak to a foreclosure defense lawyer any time a commercial mortgage falls into default.

Call Our Foreclosure Defense Lawyers in Fort Lauderdale Today

If the pandemic has caused your commercial mortgage to fall into default, it is important to understand that you are not alone and that help is available. At Loan Lawyers, our Fort Lauderdale, FL foreclosure defense attorneys can explain the options available, and the one that is right for your case. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our experienced attorneys and to receive the sound legal advice you need.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post Increase in Commercial Mortgage Delinquencies and How We Can Help appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/increase-in-commercial-mortgage-delinquencies/
via https://www.fight13.com

Why You Should Never Ignore a Foreclosure Lawsuit

Going through the foreclosure process is something that everyone hopes they’ll never have to face. The prospect of losing your home can significantly disrupt your life and dramatically impact your future and the future of those who depend on you.

In the face of such hardship, it can be tempting to ignore a foreclosure lawsuit because facing it seems overwhelming.

However, ignoring a foreclosure lawsuit won’t make it go away. If anything, ignoring it minimizes your ability to do anything about it and leaves you with fewer options. Homeowners facing foreclosure shouldn’t panic. Instead, they should speak to a qualified and experienced foreclosure defense attorney.

The foreclosure defense, debt defense, and bankruptcy lawyers at Loan Lawyers have been fighting for Florida families for more than a decade. During that time, we’ve helped thousands of clients keep their homes, reduce their debts by hundreds of thousands of dollars, and stave off bankruptcy.

No matter how bad your financial situation may seem, we can provide the legal guidance you’re looking for and give you the best possible chance of saving your home. To learn more about how we can help distressed homeowners, call us or visit our contact page.

Here are just a few reasons to speak to a Florida foreclosure defense attorney if you’re sued for foreclosure.

You Can Get a Default Judgment

A foreclosure lawsuit is actually the second step in the Florida foreclosure process. Before you can be sued for foreclosure by your lender, they’re required to send you a notice of default.

In many cases, lenders will send out these notices once your mortgage payments are 30, 60, and 90 days past due. Once these notices have been sent, your lender can file a lawsuit to advance the foreclosure process. Should your lender fail to give you the required notices, you can use that as a defense to stall the foreclosure process.

If you ignore a foreclosure lawsuit after you’ve received a notice of default, though, you give up any chance to contest the lawsuit.

There are two components to any foreclosure suit:

• The complaint, which outlines the lender’s case against you
• The summons, which details your responsibility to respond to the lawsuit.

If you do not respond, the judge overseeing the foreclosure case will assume the Complaint’s facts are correct and will issue a judgment that you are in default on your mortgage. A default judgment fast-tracks your foreclosure case and leaves you with fewer options to potentially save your home.

You only have 20 days from the date that you are served with the lawsuit to respond to your lender, so it’s essential to speak with a foreclosure defense lawyer as soon as you can.

You Can Lose Defenses If a Loan Modification Is Denied

Even after your lender has filed a foreclosure suit against you, you still own your home until the foreclosure process is complete, and the bank sells the property in a foreclosure sale. Therefore, it’s in your interest to keep working with your lender to see if you can get a loan modification. You can even apply for a loan modification multiple times, depending on who your lender is and your loan conditions.

However, even if your lender refuses to grant you a loan modification, you still have legal options if you’re sued for foreclosure. For example, if your lender does not follow the correct judicial procedures for obtaining a foreclosure judgment, you may be able to buy yourself more time or have the case thrown out entirely. But these defenses are invalid if you do not respond to the foreclosure lawsuit within the 20-day window. If you wait too long or ignore the lawsuit, the judge in your case will side with your lender and fast-track your foreclosure, as we’ve previously discussed.

Giving Up the Right to Discovery

In a civil suit, discovery is the phase of the case where both sides are allowed to look at what evidence the other party has and will be using as part of their case. This may not sound that important, but the discovery process is crucial if you want the best possible shot at keeping your home.

During discovery, your lender must provide whatever evidence they have showing that they own your mortgage, that you’ve fallen behind on your payments, and that they’ve followed the correct procedures to obtain a foreclosure judgment.

This process offers knowledgeable foreclosure defense attorneys an opportunity to poke holes in their evidence and argument. If you and your lawyer can undermine your lender’s legal argument, you may be able to buy more time to sort out your finances or possibly have the case against you dismissed.

If you ignore the foreclosure lawsuit, you give up the right to see what evidence your lender has against you. This will likely result in a default judgment against you and your home being foreclosed upon.

Contact an Experienced Foreclosure Defense Attorney at Loan Lawyers

As you can see, the foreclosure process in Florida is complicated, and the stakes are high. To give yourself the best possible chance at keeping your home, contact the compassionate and dedicated attorneys at Loan Lawyers today.

Foreclosure, bankruptcy, and debt relief are the core areas of our practice, giving us more knowledge and experience than most other Florida law firms. Our foreclosure defense lawyers know the ins and outs of Florida foreclosures. We can provide high-quality legal defense for those facing the loss of their homes. We’re proud of our many success stories during our time in practice, and we’ll do whatever we can to prevent you and your family from losing your home. To get started, call our office today to schedule your free initial consultation, or you can visit our contact page.

The post Why You Should Never Ignore a Foreclosure Lawsuit appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/why-you-should-never-ignore-a-foreclosure-lawsuit/
via https://www.fight13.com

The Pandemic Is Bad for the Country, but Good for Debt Collectors

Americans have been living with the pandemic for approximately eight months now, and the country has been devastated by it. Over 200,000 people have died after contracting the virus, businesses have had to shutter their doors, and people have fallen into an immense amount of debt. The news is grim for citizens but for debt collectors, times are good. While the pandemic may have temporarily slowed calls from debt collectors, they are now becoming aggressive once again. If you are being harassed by debt collectors or are facing legal action, a Florida debt defense lawyer can help.

Profits for Debt Collectors Soar

Encore Capital, the biggest buyer of debt in the country, announced in August that they had doubled its prior record for earnings in a single quarter. That surprised many Americans, as the CARES Act provided hundreds of billions of dollars worth in stimulus checks and unemployment insurance to residents in the country. Foreclosure, evictions, and student loan payments were also deferred or temporarily stopped.

Unfortunately, the CARES Act had one big oversight: it did not protect borrowers from older credit card debt, which is what Encore Capital focuses on. Additionally, the pandemic forced millions of households to cut their spending. As some of that income became available, more households used it to pay back debt collectors. After Encore’s biggest quarter, experts predicted the company would make more than $200 million in profits and stockholders would earn 40 percent more than the previous year. Portfolio Recovery, another one of the country’s biggest debt collectors, is projected to have the same type of growth.

It is interesting to note that Encore has been sued by the Consumer Financial Protection Bureau for breaking the terms of a consent agreement in 2015. The company was charged with using false statements to pressure consumers and filing lawsuits at a remarkable pace use robe-signed court documents, which is against the law. Even that lawsuit did not deter investors from making record projections for the company.

Court Closures and the Pandemic

If there was any negative news for debt collectors during the pandemic, particularly in the early days of it, it was the fact that local courts across the country temporarily shuttered. Debt collectors could no longer file the lawsuits necessary to recover their debt, which is one of their main sources of revenue.

That worry is now over for debt collectors. In Indiana, Encore filed over 1,000 lawsuits against debtors in August alone, and more than 2,000 lawsuits were filed by the company in Atlanta. Other debt collectors have been taking the same types of legal actions, with Portfolio Recovery filing more than 3,000 lawsuits in Chicago throughout the month of July. These are just two of the biggest stories surrounding the lawsuits debt collectors have filed.

The companies have said in different statements that they try to avoid suing and it is only a last resort used. Unfortunately, that is not necessarily true and debt collectors are typically overzealous when attempting to collect on unpaid debt. While an executive from Encore stated that they have tried to help consumers during this extremely difficult time and have temporarily stopped seeking seizures of bank accounts, they continue on with wage garnishments.

Courts have started opening. Courts reopening have clearly allowed debt collectors to file an increasing amount of lawsuits, but the fact that the courts were closed for several months on end also makes it more difficult for consumers, and even their attorneys.

The pandemic has caused confusion all around the country, including in the court system. During the time their doors were shuttered, the backlog of the courts only continued to pile up. Even when a case can be heard in a courtroom, there is not a clear path to proceed as there once was. Some court proceedings are being heard virtually, while others are not. Capacity sizes are also changing, which is affecting how many cases can be heard over a certain period of time, and other defendants are asking to call in their arguments, particularly if they have a pre-existing condition that places them at greater risk for complications if they contract the virus.

The only clear answer in courtrooms these days is that there is no clear answer. That, combined with the significant amount of debt collection lawsuits being filed, is only adding to the confusion.

Populations Disproportionately Affected

The fact that certain populations have been disproportionately affected during the pandemic has made headlines since the health crisis began. It turns out that this holds true for debt collection lawsuits as well.

Workers that earn an income under $40,000 annually are disproportionately affected by debt-collection lawsuits, as are African American communities. Even worse, lawsuits against these groups typically result in judgments at higher rates, meaning these individuals often have their wages garnished or face a seizure of their bank account. Coupled with a pandemic that is already affecting these communities at disproportionate rates, it is clear to see the severity of the struggle these individuals are dealing with.

Studies in previous years have shown that workers have approximately four million dollars worth of wages garnished every year. In Florida, debt collectors can garnish up to 25 percent of a person’s disposable income, or the amount by which a person’s disposable income is greater than 30 times the federal minimum wage, whichever is less. During the time of the pandemic, when either of these amounts can greatly help debtors, a garnishment of this size can be devastating.

Are Debt Collectors Calling? Our Debt Defense Lawyers in Fort Lauderdale Can Help

The pandemic is causing difficult times for everyone, and debt collectors are not making it any better. If you are being harassed by a debt collector or are facing legal action, our debt defense attorneys in Fort Lauderdale, FL are here to help. At Loan Lawyers, we will prepare a solid defense for your case and give you the best chance of success. Call us today at (954) 807-1361 or contact us online to schedule a free consultation so you can learn more about your options.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post The Pandemic Is Bad for the Country, but Good for Debt Collectors appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/pandemic-is-bad-for-the-country-but-good-for-debt-collectors/
via https://www.fight13.com

Zombie Foreclosures Hurt Everyone

Zombie closures are up around the country, and that includes in the Sarasota-Manatee region and the rest of southern Florida. Zombie foreclosures occur when homeowners suspect the bank will foreclose on their home, or they have already received a foreclosure notice. Fearing the worst, homeowners sometimes simply pack up their stuff and vacate the property, thinking that will allow them to move on with their lives and avoid the foreclosure case altogether. Unfortunately, that is not usually the case and instead, the homeowner faces additional consequences. Additionally, zombie foreclosures also hurt the lender and the surrounding neighborhood.

Zombie Foreclosures Hurt Homeowners

It seems logical that once a homeowner has moved out of a property facing foreclosure, there are no further consequences to the property owner. The bank will simply foreclose and the process may, in fact, be even smoother because the homeowner is not fighting the action. It is then often too late when the homeowner realizes that the negative impacts of the foreclosure did not stop when they left the property.

Just as the title to the property would remain in the homeowner’s name if they left the home for a significant period of time and were not facing foreclosure, the same remains true when a lender has already taken foreclosure action. The title will remain in the homeowner’s name until the foreclosure process is over – this means that the property owner will carry all of the same responsibilities. If the lender decides not to proceed with the foreclosure action, the property owner could have all the same obligations indefinitely.

One of the ramifications a person may face in a zombie foreclosure is that they are still responsible for paying property taxes. A tax collector may find the homeowner at their new location and try to collect on the back taxes the person still owes. If the homeowner lived in a property governed by a homeowners’ association (HOA), the property owner is still also liable for any fees or assessments they owe. The HOA may file a lawsuit in an attempt to recover those unpaid fees.

Properties that have been abandoned by the homeowner will also quickly fall into disrepair. When that is the case, the local government may also locate the homeowner and send them a bill for necessary repairs, trash removal, graffiti removal, and yard maintenance.

A story in Dunedin, Florida several years ago made headlines throughout the state when the homeowner was slapped with more than $100,000 in fines for stagnant water in a swimming pool and overgrown vegetation on the property while her name was still on the title.

These stories are not uncommon and they clearly show that even if you walk away from your home because you are facing foreclosure, you are not necessarily freeing yourself from liability. If you do not pay these fines, the city may also take legal action in an attempt to garnish your wages or otherwise recover the fees owed.

Lastly, a zombie foreclosure will hurt your credit score. Many people understand that a foreclosure on their credit report will negatively impact their credit score. However, when you incur additional fines from the city and municipality for unpaid property taxes, these will further hurt your credit score.

Zombie Foreclosures Hurt Neighborhoods

Abandoned properties are never good for neighborhoods. Vacant properties are highly susceptible to become a location for criminal acts, vandalism, squatters, and more. Of course, abandoned properties also become overrun with vegetation and otherwise fall into disrepair, which is why a municipality is so likely to issue fines when this occurs. However, properties that are in disrepair or the location for crimes are also very bad for the surrounding neighborhood.

Properties that are not properly maintained and managed cause the resale value of the surrounding properties to also drop. Anyone in that neighborhood that then wants to sell their home will not receive as much in profits from the sale. Also, unmaintained properties simply become unsightly. For those living in very close vicinity to the abandoned property, it can also result in them being unable to fully enjoy their home. They may not want to spend time in their yard because they are forced to look at the unmaintained property, and wildlife such as feral cats or even mice and rats may move in, and quickly spread out to surrounding properties.

Clearly, zombie foreclosures do not only hurt the homeowners that were facing foreclosure but all homeowners around them, too.

Zombie Foreclosures Hurt Lenders

It is common for homeowners facing foreclosure to not worry too much about the lenders to which they owe money. In fact, it is very easy to see the lender as an enemy. However, zombie foreclosures also hurt banks and other financial institutions, which is not good for the economy as a whole or taxpayers.

When property owners vacate their homes, the bank then must maintain the property, particularly if they want to sell it in the future. The lender then has to ensure the property is in good condition, and that it is properly maintained to attract buyers, all of which is very expensive. While many people do not see this as a concern because banks are a big business, it impacts everyone.

During the Great Recession of 2008, the United States government bailed out the banks, spending approximately $700 billion to do it. The money the government uses for this type of bailout is taxpayer money and so, it hurts everyone. Regardless of whether people think bailouts work or not, the fact of the matter is that they do occur and when that is the case, they hurt everyone.

Our Florida Foreclosure Defense Lawyers Can Help You Avoid a Zombie Foreclosure

It is true that zombie foreclosures hurt everyone. Even more unfortunate is the fact that many people think they have taken the right steps only to learn later their property is a zombie foreclosure and they still have certain obligations tied to the property.

At Loan Lawyers, our experienced Fort Lauderdale, FL foreclosure defense lawyers will not allow this to happen. We know how to defend against foreclosures to help you stay in your home and avoid the negative ramifications of a foreclosure, zombie or otherwise. Call us today at (954) 807-1361 or contact us online to learn more about your options.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations.

Contact us for a free consultation to see how we may be able to help you.

The post Zombie Foreclosures Hurt Everyone appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/zombie-foreclosures-hurt-everyone/
via https://www.fight13.com