Loan Lawyers: August 2020

Tuesday, 25 August 2020

How to Negotiate a Commercial Loan Modification

It was at the end of July when Florida Governor Ron DeSantis signed Executive Order 20-180, the order that extended the moratorium on residential mortgage foreclosures and tenant evictions. Unfortunately, the language included in the order clearly shows that the moratorium now only applies to residential properties, leaving commercial property owners at risk of foreclosure or eviction. Commercial property owners have many of the same defenses available in a foreclosure lawsuit, including negotiating a loan modification, but it is not always easy to do. Below are some steps to follow when trying to obtain a loan modification with lenders.

What Is a Loan Modification?

A commercial loan modification, also known as a workout loan, is sometimes available for business borrowers that are unable to refinance an existing loan. A loan modification can change any part of the original loan, including the length of the loan, the monthly payments, and even the original balance. When a loan modification is negotiated carefully, it can help the borrower bring their payments up to date and avoid foreclosure.

Negotiating a loan modification is not easy. The lender must first agree to change the terms of the loan, and then both sides must come to an agreement that is reasonable and fair. In most cases, it is best to work with a foreclosure defense lawyer, particularly when the mortgage is for a commercial property, which is often much more complex.

Collect and Review All Loan Documents

You simply cannot negotiate a loan without knowing the original terms. In the years preceding the financial crisis, many borrowers negotiated loans, without fully understanding the loan’s covenants and conditions. Even if you believe that you fully understand the terms of your current loan, it is still important to review them to refresh your memory about the terms.

For example, is your loan non-recourse? If so, this means that even if the lender starts foreclosure proceedings, they cannot attempt to recover other assets of the borrower. In the event that your loan is non-recourse and the property will not be worth the same value as the current loan, a transfer of the property in the form of a deed-in-lieu of foreclosure may be a better option.

Communicate with the Lender

It is natural for borrowers to want to avoid their lenders when they have fallen behind on payments. However, ignoring communication from your lender, or failing to notify them when you cannot make scheduled payments is never the right option. Lenders do not like to be surprised, especially when the surprise involves a missed payment or a violation of the loan’s terms. Calling them and explaining the situation will not fix the situation entirely, but it will make the lender more apt to work with you to find a solution.

If you have fallen behind on more than one month of mortgage payments, or if you believe you will, it may be in your best interest to write a hardship letter. Explain the situation and when you believe you will be able to bring the loan up to date. Hardship letters are most effective when you have a good payment history on the loan.

Lenders are more willing to work with borrowers than most business owners think. Lenders do not want to foreclose on a property and take the home as collateral. They would much rather keep borrowers in their home and work on a solution for everyone that will help them recover the debt. In the event that the borrower is not forthright with the lender though, they may be more likely to start the foreclosure process.

Qualifying for a Loan Modification

Of course, no matter how much you stay in contact with your lender, you must still qualify for a loan modification in order to obtain one.

When determining whether you qualify, a lender will consider the following factors:

How proactive you have been in addressing the problem, such as whether you have notified them and attempted to find a solution;
The extent to which the equity in the property is in the lender’s interest;
The payment history on the loan;
Your overall credit history; and
Your business plan and realistic projections for future revenues that will help you repay the loan.

All of these are important, but the last one may be the factor your lender weighs the most heavily. Lenders do not want to go through loan modification negotiations only to have to start foreclosure proceedings in the near future. As such, they will evaluate whether you will be able to repay the loan in the future and take that into great consideration.

Talk to an Experienced Foreclosure Defense Lawyer

Again, negotiating a mortgage loan modification is not easy, but an experienced foreclosure defense lawyer can help make the process easier.

When working with a foreclosure defense attorney, your attorney will:

Review your current loan documents and explain the options available to you;
Assess the terms that will realistically allow you to make payments on the loan while running your business;
Draft documents to prove to the lender that you will be able to repay the loan;
Draft a proposal for your lender;
Negotiate with the lender on your behalf;
Review the modification documents if the lender agrees; and
Ensure that you fully understand your rights and obligations.

It is important to speak to an attorney as soon as you know that you will have difficulty making payments, even if you have not yet missed a payment. Speaking to an attorney at this time will give your attorney time to prepare for speaking to your lender, and will allow them more time to assess the best option for your situation.

Our Florida Foreclosure Defense Lawyers Can Help with Your Case

Facing foreclosure is always scary, particularly when the property is essential for your business. If you have missed a payment, or fear you will in the future, our Fort Lauderdale foreclosure defense attorneys at Loan Lawyers are here to help. We understand the options available, will advise on your case, and give you the best chance of securing the loan modification you need. 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.

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How to Prove a Debt is Not Yours

Debt collectors are required to collect on debt that is past due and to do so, they have many strategies they use. They will call constantly, send letters, list the debt on your credit report, and they may even file a lawsuit against you. All of these actions are difficult to face when the debt is rightfully yours but, when it is not, it is even worse.

Debt collectors may attempt to collect a debt that is not yours for many reasons. For example, a person may have opened an account in your name and failed to make payments on the debt. Or, the debt may have been sent to a debt collection company by mistake. In rarer cases, dishonest debt collectors might even create fake debts in the hope that consumers will just pay them without investigating. It is important that you always verify that the debt is yours before you pay it, and that you understand the steps to take to prove it is not.

Determine if the Debt Is Yours

You may think that just because you have never seen the name of the debt collector before, or because you do not remember incurring the debt, that it is not yours. This is not always true. Creditors often bundle debts and sell them to someone else for pennies on the dollar, so you can receive notification of the debt from another company. There is also always the chance that you simply forgot about the debt and that you are still responsible for paying for it.

Determine if the Statute of Limitations Has Run Out

When a debt collector continues to try to recover debt, it is always important to determine if the statute of limitations has expired, even if you suspect the debt is not yours. In Florida, the statute of limitations, or time limit, for written contracts is five years. Open-ended accounts, such as credit cards, have a statute of limitations of four years.

If the statute of limitations has expired, you may not want to put the same amount of effort into disputing a debt that is not yours as you would if you owned the debt. However, it is still important to dispute the debt if you cannot verify that it is yours. While debt collectors are not likely to take legal action against you if the statute of limitations has expired, the debt will still remain on your credit report for seven years, which will damage your credit.

Disputing the Debt

Once you have verified that you cannot identify the debt, you need to ask the debt collector for proof that the debt is yours. After you have made this request in writing, the debt collector is required to stop contacting you in an attempt to collect the debt. You cannot be contacted by the credit bureau, or receive any phone calls or letters until the debt collector has proven that the debt is yours and that they have the right to collect it.

When working with a debt defense lawyer, they will send a debt validation letter to the debt collector asking them to prove that the debt is yours. A lawyer will also send the letter through certified mail so there is proof of the date the letter was sent and the date the debt collector received it.

Get Copies of Your Credit Report

It is bad enough when your credit is damaged due to debt you actually incurred. Facing the consequences of bad credit for a debt that is not rightfully yours is unacceptable. If you dispute a debt and the debt collector cannot prove that it is yours, it is imperative that you get copies of your credit report to ensure the debt has been taken off your report.

Many people only obtain their credit report from one credit reporting bureau, thinking that they are all the same. Unfortunately, they are not. Some debt collectors will report a debt to one or two credit reporting bureaus, while others will report debt to all three major bureaus. To ensure the debt will not damage your credit, obtain a copy of your credit report from Experian, Equifax, and TransUnion.

If, after receiving your credit report, you find that the debt is still appearing on your report, send a letter to the bureaus reporting the debt. State within the letter that the debt does not belong to you and provide any evidence that supports your argument.

Holding Debt Collectors Accountable

Debt collectors are required to follow specific guidelines and laws when trying to collect on a debt. If you have taken the appropriate steps to dispute a debt and the collector has not stopped harassing you or, worse, has taken legal action against you, it is important to speak with a debt defense lawyer who can help.

You may be able to take legal action against debt collectors who do not comply with the law by filing a lawsuit against them. A lawyer can determine if you have a valid lawsuit and will assist with any important court filings. If a debt collector has tried to sue you, it is especially crucial that you speak with a lawyer. Simply appearing in court and stating that the debt is not yours is, unfortunately, not enough. A lawyer will provide the best legal defense possible and present evidence to strengthen your case.

Call Our Florida Debt Defense Lawyers Today

If you are being harassed by debt collectors or legal action has been taken against you, it is important to speak to a Fort Lauderdale debt defense lawyer, even if you do not think the debt is yours. Ignoring it will not make it go away, and debt will do severe damage to your credit over time. At Loan Lawyers, our Fort Lauderdale debt defense attorneys can advise on your case, help you prove a debt is not yours, and prepare a strong defense when it is. Call us today at (954) 807-1361 or contact us online to schedule a free consultation.

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Thursday, 20 August 2020

What Rights Do Homeowners Have During the Foreclosure Process?

In response to the coronavirus, Florida Governor Ron DeSantis placed a moratorium on foreclosures and evictions in early April. Recently, the Governor extended that order, but there are now concerns that the new order includes very different language from the original. The change in vocabulary has opened the door for broader interpretations, which mortgage lenders and landlords have jumped on so they could move forward with evictions and foreclosures.

Of course, the changed order is of great concern to Floridians, particularly those who were enjoying the protection of the moratorium at this incredibly uncertain time. The greatest concern is that Florida homeowners are now facing an infringement of their rights. So, what rights do you have if you are facing foreclosure? The five main rights you have during the foreclosure process are listed below.

The Right to a Trial

One of the biggest rights homeowners are worried they will lose during this already difficult time is the right to a fair trial. Florida is a judicial state when it comes to foreclosures. That means that lenders must file a lawsuit against homeowners when a mortgage falls into default, and both the lender and the defendant have the right to appear in court and make their arguments.

It is this right that homeowners are so concerned about losing during the pandemic. Florida has become a hot spot for COVID-19 and so, court proceedings are being held via video conferences using a platform such as Zoom. Homeowners and attorneys around the state are questioning whether these virtual meetings will infringe on the right homeowners have to a fair trial.

The concern is that even though homeowners would have a trial of sorts, it is not the same as being in a courtroom. Court reporters cannot always hear witnesses, and it is more challenging to introduce documents as evidence, which is crucial in a foreclosure trial.

The Right to Defend

The purpose of having a fair trial, of course, is so that homeowners have a chance to present a defense that may help keep them in their homes. The only way a homeowner will lose this right is if they leave their home voluntarily before being formally evicted by the lender. For this reason, simply packing up and leaving is the worst action homeowners can take, because they will then forfeit their rights.

People sometimes leave their home after receiving a notice of foreclosure because they think they are out of options. That is not true. There are many defenses to foreclosure, such as requesting a loan modification, or filing Chapter 13 bankruptcy and spreading out the mortgage payments over time, so they are more manageable.

Even when these solutions are not possible, homeowners may still have many defenses that can keep a foreclosure off of their credit history, which will sink their credit score. Short sales and a deed-in-lieu of foreclosure can help keep a foreclosure off a person’s credit report.

The Right to Discovery

The right to discovery is a very important right for homeowners facing foreclosure. Discovery is a main component of any trial and it is during this time that your foreclosure defense lawyer will ask the lender for certain documents and information that could help with your case.

The most important document to ask for during discovery is the note that was signed when you purchased your home. In many cases, the note to a home has been reassigned or sold to someone other than the original lender and the note has subsequently been lost. This may not stop the foreclosure process entirely, but it does present new hurdles for the mortgage servicer. They will have to overcome those legal challenges before they can proceed with the foreclosure of your home.

During the discovery process, your foreclosure defense lawyer will also ask for documents to prove that the lender violated certain foreclosure rules. Violations are much more common than people think; the discovery process is crucial, as this can provide an additional defense.

The Right of Proof

All trials involve some level of burden of proof. In foreclosure matters, the burden of proof is a preponderance of the evidence. In simple terms, this means that the lender has the burden to prove that you more likely than not defaulted on your mortgage or violated some other terms of homeownership that allows them to foreclose. You do not have to prove that your mortgage is up to date or that you followed certain other rules. Although proving that you did not default or break other terms can provide a good defense, you do not have a legal obligation to prove this.

Proving a preponderance of the evidence is a lower standard for the lender’s burden of proof than beyond a reasonable doubt. Still, a knowledgeable foreclosure defense lawyer will know how to refute their arguments, making it more difficult for a lender to prove their case.

The Right to Counterclaim

If at any time during the foreclosure process, you feel as though the lender has violated certain lending rights, you can counterclaim. Counterclaims are very similar to counter-lawsuits that are filed against mortgage lenders or servicers when they have broken certain laws.

Counterclaims work a little differently than the original lawsuit a lender may file. For example, your counterclaim may be heard by a jury instead of one judge that will make all of the decisions, such as in a foreclosure lawsuit. When making a counterclaim, it is crucial to work with a foreclosure defense lawyer who can help you understand what the law says about your case.

Our Florida Foreclosure Defense Lawyers Will Uphold Your Rights

You have many rights when facing the prospect of losing your home. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys know what those are and will ensure that they are upheld. If you are facing foreclosure, 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.

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8 Questions to Ask Before You Pay a Debt Collector

Being harassed by debt collectors is one of the worst parts of accumulating a significant amount of debt. You may pay them just to keep them from calling, or your circumstances may have changed, enabling you to now pay off the debt.

Regardless of the situation, it is important to understand that debt collectors do not always abide by the law and the rules surrounding debt collection. To ensure that you are not being taken advantage of, and that you are only paying debt that is rightfully yours, it is important to ask the eight questions below before you pay any debt collector.

What Is a Debt Collector?

Many people do not know that when someone calls them to recover debt that is owed, it is often not the original creditor. Most of the time, the person is calling on behalf of a debt collection company, and they have very specific rules they must follow. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from contacting you at certain times, or from contacting other people about your debt.

It is important to understand, though, that the FDCPA only applies to third-party debt collectors and not original creditors. On the other hand, the Florida Consumer Collection Practices Act outlines many of the same rules and laws, and it applies to both third-party debt collectors and original creditors.
When Is the Collector Calling?

Each year, the Federal Trade Commission (FTC) receives thousands of complaints accusing debt collectors of calling outside of the times they are legally allowed to. There are likely many more than just these, as many consumers may not call the FTC to make a complaint. It is crucial to understand that debt collectors are only allowed to call you between 8 a.m. and 9 p.m. local time. If a debt collection company is calling you outside of those times, they are in violation of the FDCPA and you can take action against them.
Do You Want to Make the Debt Collector Stop Calling?

When debt collectors are not in violation of the FDCPA, borrowers often think there is no way to make debt collectors stop calling. This is not true, though. You can request that the debt collection stops calling and that they only contact you in writing. To do this, you must put your request in writing as well, in the form of a cease and desist letter. You should use certified mail to send the document so you can track it and confirm that the debt collector did in fact receive it.

It is important to know that one cease and desist letter will only apply to one debt collector. If multiple collectors are calling you, a letter for each one is required. If you send a debt collector a letter and they then sell your debt, you will have to send a letter to the collection company that purchased your debt.
Is the Debt Yours?

Many people take it for granted that if a debt collector is calling them, they owe the debt. However, one of the most common complaints about debt collectors is that they attempt to collect the wrong debt from the wrong person.

Any time a debt collector calls, you should ask them to verify that the debt does belong to you. This is your right, and you should never pay a debt before a debt collector has verified it. To verify that the debt is yours, a collector must provide you with documentation from the creditor that initially held your debt. It is just as crucial to understand that you only have a certain amount of time to ask the collector to verify the debt.
Has the Statute of Limitations Expired?

In Florida, the statute of limitations on most consumer debts is five years. Debt collectors are hopeful that you will not be aware of this law and, therefore, will not take the necessary steps to protect yourself. If five years or more has passed since you accrued the debt, collectors are prohibited from calling you or otherwise trying to collect on the debt. However, if you have made a payment on the debt, that can toll the statute of limitations and the time limit will begin again on the date of your payment.
Has the Debt Collector Upheld Your Rights?

You have many rights when it comes to debt collection, and debt collectors must ensure that these rights are upheld. As such, they cannot request that you pay more than what you actually owe, and they cannot threaten you with a lawsuit if they have no intention of suing you. If a debt collector has infringed on your rights, you can file a lawsuit against them to recover actual damages and, potentially, even punitive damages.
Should You Repay the Debt You Owe?

There are some instances in which you may be tempted to forget about the debt entirely and not repay it. For example, if the statute of limitations has expired and debt collectors have stopped calling, you may think it is a good idea to not repay the debt. After seven years, the debt will also likely be removed from your credit report, which means it will not negatively affect your credit score. However, in most cases, it is a good idea to repay any outstanding debt that you owe. Seven years is a long time, and paying it back as soon as possible will help get you on the right track sooner.
Do I Need a Florida Debt Defense Lawyer?

The answer to this question is that it depends. If you have debt and a collector is infringing on your rights, it is important to speak to a Fort Lauderdale debt defense lawyer who can hold them accountable for upholding your rights. If a debt collector has taken legal action against you, it is even more important that you speak to an attorney. At Loan Lawyers, we have represented thousands of people in debt collection lawsuits, and have the necessary experience to help you win your case, too. 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.

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Monday, 17 August 2020

Things NOT to Do Before Filing for Bankruptcy

Making the decision to file for bankruptcy is always a difficult one. Once you have determined that it is your best option, it is critical to avoid some common mistakes both before you file, and throughout the process.

Aside from the enormous amount of paperwork involved, filing for bankruptcy requires a great deal of preparation. The actions you take–or fail to take–before filing can have a tremendous impact on your bankruptcy case.

What Not to Do Prior to Filing Bankruptcy

Some of the most common mistakes people make when they file for bankruptcy include:

Keeping your banking accounts at the same institution you have a personal loan: In Florida, banks have the right of setoff, which means they can take money from the banking accounts you have opened with them to pay off any loan they hold when you get behind on payments. Even if you are not filing for bankruptcy, it is a good idea to move your savings and checking account to another banking institution.
Keeping your banking accounts with the wrong financial institution: Even if you do not have a loan with the same bank you use for your savings and checking account, you should still research the actions your bank will take if you file bankruptcy. For example, Wells Fargo is well known for freezing the accounts of clients who file for bankruptcy, and this could hurt you during the process.
Not timing the filing correctly: When you file for bankruptcy, you must detail all of your bank accounts and the amounts in them. If you file at a time when your account is quite high, you will have to report that amount as an asset, even if you know there are many automatic deductions and withdrawals in the near future. Wait until your bills are paid, and then file bankruptcy.
Forgetting about your tax refund: The bankruptcy courts want to know all of the assets you have and, if you do not list them all, including a tax refund, it could hurt your case. Even if you have not received the refund yet, still disclose the amount and use any exemptions applicable to keep it from being seized as part of the bankruptcy process.
Getting rid of assets just before filing: You should hold off on giving, selling, or transferring title of any assets at least six months before filing, and ideally for a full year before. The court may suspect that you are trying to retain those assets while filing for bankruptcy, and you may even end up facing charges of bankruptcy fraud.
Paying off personal loans before filing: Many people do not only have loans with financial institutions, but they also borrow money from friends and family members. To avoid the embarrassment of admitting they are having financial institutions, people often pay off these personal loans before filing. However, all creditors are treated equally in bankruptcy court, even those you have a personal relationship with. Do not pay off any debts, and do make sure you include all debts in your bankruptcy forms, even loans held by friends and family members.
Applying for a home equity loan to avoid bankruptcy: You may think it is a good idea to borrow against your home so you can pay off your debts and avoid bankruptcy. This is usually a mistake. If you cannot repay the loan, you may end up losing your home. If you file bankruptcy, on the other hand, you may be able to use exemptions to protect your home, or you can file for Chapter 13 bankruptcy, which may allow you to keep your home.

While these are the most common mistakes people make before they file bankruptcy, there are also some you want to avoid once the process has already started.

What Not to Do After Filing Bankruptcy

A Florida bankruptcy lawyer will help ensure you do not make mistakes during the bankruptcy process.

The most common of these mistakes are as follows:

Including inaccurate, dishonest, or incomplete information: Florida law requires you to disclose all information related to your income, assets, financial history, debts, and expenses. If you are careless when filling out this information and miss a pertinent fact to your case, your debt may not be discharged and you may not be able to correct it later. Worse yet, if it is found that you knowingly withheld information, you could face criminal charges for perjury.
Accruing more debt before filing: It is natural to think that because your debt is going to be discharged, you should apply for another credit card or loan and rack up another few hundred dollars. The bankruptcy court will not look kindly on this and, seeing that you accrued more debt just prior to filing, may not discharge that debt.
Selling your home before the process is complete: Selling your home may be an issue in certain bankruptcy cases, such as if you are filing Chapter 13. This type of case will extend over three to five years, and selling your home for a major profit may hurt it. If you are filing Chapter 7, selling your home may not hurt your case to the same extent, but it is important to speak to a lawyer to ensure you are not making a mistake.
Not showing up for your hearing: If you fail to attend your bankruptcy hearing, there is a good chance that the judge will dismiss your case. Your debts will not be discharged, and you may have to start the entire process over again. Always attend the hearing and bring photo identification and proof of your Social Security number.

Our Florida Bankruptcy Lawyers Will Ensure You Do Not Make Mistakes

The best way to avoid making some of the most common mistakes before and during the bankruptcy process is to speak to a Fort Lauderdale bankruptcy lawyer. At Loan Lawyers, we have experience helping thousands of Floridians throughout the bankruptcy process, and we want to put that experience to work for you. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our knowledgeable attorneys.

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Debunking the 12 Biggest Myths About Debt Collection

For many people, one of the worst aspects of being in debt is the fact that debt collectors call constantly. Debt collectors have become so abundant–and so earnest in their pursuit of recovering debt–that over the years, myths and misconceptions have abounded surrounding debt collectors and what they are and are not allowed to do. Myths surrounding the responsibilities of borrowers, and the actions they should take or not take, are also very common.

Below are the 12 biggest myths surrounding debt collection, and the truths behind them.

Debt Collectors Only Call About Legitimate Debts

It is natural to assume that if a debt collector is calling you, the debt they want to recover is legitimate. Making this assumption is dangerous, though, and could place you further in debt if you repay a debt that is not yours. Debt collectors do not always receive the correct information and, in some cases, they have been known to even act dishonestly. Before paying any debt, it is important to request validation of the debt–this is your right under the law.
Ignore Your Debt and it Will Go Away

It is true that Florida has a statute of limitations on debt of five years. However, this only means that once five years have expired, debt collectors can no longer try to take legal action against you, such as filing a lawsuit. It does not mean that debt collectors can no longer call you, or that the debt is erased from your credit report. If you want to be truly free of the debt, you must pay it.
Debt Collectors Do Not Take Legal Action After the Statute of Limitations Expires

So, the five years have passed since the debt and now you believe you are free and clear because the law prevents the debt collectors from taking action. This may be true, but debt collectors are not always respectful of the law, and will sometimes try to take action even though they know the debt has expired. Also, if you make a payment it may restart the clock on the statute of limitations, which means the debt collector may be able to take legal action against you.
A Cease and Desist Letter Will Make Debt Go Away

If you work with an attorney that sends a debt collector a cease and desist letter, it only means that they are prohibited from calling you directly. Again, the debt will remain on your credit report and you are still responsible for paying it. Additionally, if your debt is assigned to a new debt collector, the cease and desist demand will no longer apply.
You Can Remove a Debt from Your Credit Report by Paying It

After you pay a debt, the debt collector is only required to report the payment to the credit reporting bureaus. They are not required to remove the debt from your credit report right away. Paying debt will definitely help improve your credit score, but you may not see the immediate results you are hoping for.
Making Payments Means Debt Will Stay on Your Credit Report Longer

Most debts can only stay on your credit report for seven years, regardless of whether you pay it in full or not. Making payments on the debt does not change that time limit. The seven-year timeline starts at the date of the delinquency, not the date that you made a payment, so it will remain the same no matter how much of the debt you repay.
You Can Tell Debt Collectors to Stop Calling You

If you want debt collectors to stop calling you completely, you must tell them so in writing. A verbal statement is only considered valid if the debt collector is calling you at work and your employer has a problem with it. If you tell the debt collector that they are calling at an inconvenient time, they can still contact you but they must do so at a different time.
Debt Collection Calls Stop if You Make Partial Payment

If you owe a debt, you are expected to pay it in full. Making a partial payment may keep the debt collectors at bay temporarily, but if you do not fully repay the debt, they will start calling again at some point.
Settling a Debt Improves Your Credit Score

Debt collectors will sometimes agree to settle your debt for a lower amount and this is often a great option for borrowers. However, settling your debt will not improve your credit score right away. You will have a zero balance on the debt, which is good, but only making payments on the rest of your debt, coupled with time, will improve your credit score.
You Can Go to Jail for Unpaid Debt

Debtors’ prisons have not existed in the United States for nearly two centuries. You cannot go to jail for unpaid debts, and debt collectors cannot threaten to send you to jail for unpaid debt.
Debt Collectors Will Garnish Your Wages

Wage garnishment is one option debt collectors have to recover the amount of debt you owe. However, there is a strict process they must follow to do it. They must first file a lawsuit against you–then they must win. A debt defense attorney can provide a defense for your case that results in a favorable judgment for you, and that prevents wage garnishment.
You Can Pay the Original Creditor Instead of the Debt Collector

Many people prefer to repay the original creditor instead of the debt collector that keeps calling. This is a mistake and will only keep the debt on your credit record longer than necessary. In most cases, the creditor has sold the debt to a debt collector, so they no longer own it and cannot accept payment on the account. In many instances, the creditor and debt collector even have an agreement that prevents the creditor from collecting payment.

Our Florida Debt Defense Lawyers can Dispel More Myths

While there are many myths surrounding debt collection, the above are only a few of the most common. If you are having trouble with debt, or a collector has already taken legal action against you, our Fort Lauderdale debt defense lawyers can help. At Loan Lawyers, we have defended thousands of people in debt lawsuits, and we want to put our experience to work for you. To learn the truth about debt collection lawsuits and how we can help, call us today at (954) 807-1361 or contact us online for a free consultation.

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Thursday, 13 August 2020

Facing Foreclosure? Learn Why You Need an Attorney

If you are facing foreclosure, losing your home may be taking up most of your thoughts and you might not even be thinking about speaking with a foreclosure defense lawyer. However, an attorney is a great help when you are going through this process, and may even help keep you in your home. Below are the many different ways an attorney can help you if your lender or mortgage servicer has started the foreclosure process.

What Is Foreclosure?

Many people understand that the foreclosure process means that they have been unable to make their mortgage payments, so the lender starts proceedings to take ownership of the property. Although this is fairly common knowledge, it is also important to understand that foreclosure is also a legal process. Lenders cannot simply decide to foreclose on your property and force you to vacate your home immediately. Foreclosure is sometimes a lengthy process as well. As such, it is important to speak to a lawyer and understand how they can help you through it.

The Foreclosure Timeline

In Florida, the foreclosure process begins when the lender or mortgage servicer files a foreclosure lawsuit with the court and serves the borrower with a complaint and summons. You must respond to the complaint and summons within 20 days of being served, or the lender may secure a default judgment against you, meaning you may lose your home without ever being given the chance to defend yourself. An attorney will ensure that you meet this deadline and start preparing your defense right away.

After you have responded to the complaint and summons, the case will then go through the discovery phase. During this phase, each side is allowed to ask the other party for information, and this is one area in which having an attorney is especially helpful.

The discovery process is complex and involves a lot of legwork. You also need to know what information you want to request from the other side and, without a legal background or in-depth knowledge of the foreclosure process, it is very difficult to request the right documents that will help you with your case. An attorney will understand what information to seek and will obtain the information in a timely manner so the discovery process does not unnecessarily hurt your case.

Once the discovery phase of the case is complete, a judge may use a summary process to make a decision on the case. In this instance, the result could be a final judgment in favor of the lender, which means you will lose the case and your home will be sold.

If the case does not go through the summary process, the case will go to trial, and this is when you will need a lawyer the most. Without an attorney present, you will be expected to understand the legal system and the process of the trial. You will also have to appear in a courtroom, and deal with the pressures that come with it. The other side’s attorney will most likely try to use intimidation tactics to railroad you and hurt your case.

An attorney will not be intimidated during any point of the trial, and will understand the legal system. Very few people that take a case to trial without the help of a lawyer are successful and they typically end up losing their case, and their home. A lawyer can also help you come to an agreement with the lender or mortgage servicer either before the trial begins, or while it is ongoing. For example, a lawyer may negotiate with the lender on your behalf to agree to a payment arrangement in which you can make up the missed mortgage payments over a period of several months.

Regardless of whether the final judgment in your case is made through the summary process or through a trial, after the decision is made, there is very little that can be done. Having an attorney by your side during this time is also very helpful because they can help you appeal the decision and make motions that may help keep you in your home.

How a Lawyer Can Help with Your Foreclosure Case

Throughout the foreclosure process, there are a number of ways an attorney can help with your case. These include:

Identify if your case has been filed improperly;
Identify and prepare meaningful and procedural defenses;
Identify when your mortgage lender violates the Florida Unfair Lending Act;
Identify times when the mortgage lender is in violation of other fair lending violations;
Determine whether or not your lender can prove that they own the loan;
Prove that you are in the military and, therefore, that the ownership of your home is protected under the Servicemembers Civil Relief Act;
Bring the foreclosure process to a close in a cost-effective manner;
Assist you with staying in your home until the foreclosure process is finalized, and perhaps even after;
Identify when your lender or mortgage servicer is dual tracking, which is prohibited by law;
Negotiate with the lender or mortgage servicer for a loan modification;
Assist you with selling your home at a fair price so you can repay as much money as possible to the lending company;
Assist with rent collection while a rental property is going through the foreclosure process;
Assist you in filing for Chapter 7 or Chapter 13 bankruptcy; and
Provide a valid defense when there is evidence that you have been making mortgage payments and that the lender has mismanaged them.

Essentially, a lawyer will walk you through the entire process and give you the best chance of remaining in your home.

Call Our Florida Foreclosure Defense Lawyers Today

If you have fallen behind on your mortgage payments and are now facing foreclosure, our Fort Lauderdale debt defense lawyers are here to help. At Loan Lawyers, we have helped thousands of homeowners stay in their homes, and we want to put our experience to work for you. Call us today at (954) 807-1361 or contact us online to schedule a free consultation.

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Know Who Debt Collectors can Call, and Who They Cannot

If you are in a significant amount of debt and have started receiving notices from debt collectors trying to collect it, you are likely worried about many things. Most obviously, you are worried about how you are going to repay the debt, but you may also worry about the actions debt collectors take against you. You may even be concerned that the debt collector will call people you know, such as your family, friends, or even your employer. This is embarrassing and can make things uncomfortable in your personal and work life. So, when you owe a debt collector, who can they call to recover the debt?

Contact Under the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is a federal law that strictly prevents debt collectors from contacting certain people about your debt. The only exception to this is when the debt collector cannot locate you and needs to contact people you know to get in touch with you. In this instance, a debt collector may call your family, friends, or employer, but they are still limited in what they can say. In these instances, a debt collector can only identify themselves and state that they are trying to confirm or correct your location information. They cannot state who they work for, unless they are specifically asked by the person they contacted.

Even when debt collectors lawfully contact someone you know under the Fair Debt Collection Practices Act, the law is still very strict regarding what the debt collector may and may not say. Although they are allowed to state that they are trying to correct missing information, they may not tell anyone that you owe debt, and they are certainly not allowed to disclose the amount of debt you owe.

Debt collectors also cannot communicate with third parties using a postcard, letterhead, or anything else that may indicate that the communication is in reference to collecting on a debt. It is also against the law for debt collectors to talk to anyone, including when correcting location information, except the borrower’s attorney when they are represented by legal counsel. Again, there is an exception here and that is when the borrower does not have a lawyer.

Contact Under the Florida Consumer Collection Practices Act

It is crucial that borrowers understand that while the federal law only applies to third-party debt collectors, the Florida Consumer Collection Practices Act is applicable for both debt collectors and the original creditor. This means that under the federal law, you are only protected if the original creditor has sold your debt. Under Florida’s Act, everyone in the state is afforded the same protections, regardless of who holds the debt.

Under the Florida Consumer Collection Practices Act, both debt collectors and original creditors are prohibited from communicating with a third party regarding the borrower’s reputation, including any information regarding their personal financial situation, unless they have a legitimate business need. Debt collectors and creditors are also prohibited from telling third parties any information they know to be false.

The state’s act on debt collection also strictly prohibits debt collectors and original creditors from contacting your employer. However, there are some exceptions to this rule as well. If you have given permission for a collector or creditor to contact your employer, they are allowed to do so. You must provide consent in writing, and you must also acknowledge that your debt is the reason they can contact your employer.

Debt collectors and creditors can also contact your employer if you have already had a final judgment issued against you. For example, if a debt collector or creditor has filed a lawsuit against you to recover the debt, and they were successful with the lawsuit, they may have obtained a judgment for a wage garnishment. In this case, they must contact your employer to inform them to deduct a portion of your paycheck and send that portion of your check to them instead.

Lastly, debt collectors and creditors also cannot contact you if you are represented by an attorney. In these cases, debt collectors are only allowed to contact you if your lawyer does not respond to their communications, or if you initiate contact with the debt collector first.

Seeking Damages for Third-Party Disclosure Violations

Both the Fair Debt Collection Practices Act and the Florida Consumer Collection Practices Act allow individuals to collect damages when a debt collector or creditor discloses prohibited information to third parties. Under each act, a borrower can pursue $1,000 in damages when a third party discloses certain information. Borrowers can also seek damages for humiliation, embarrassment, and stress.

Of course, when you are suffering from an immense amount of debt, you may not want to pay an attorney to help you prove that a debt collector or creditor infringed on your rights. Fortunately, both acts allow you to hold the collector or creditor responsible for paying your attorney fees, so you can hold them accountable without losing anything or going further into debt.

It is crucial that borrowers understand their rights when it comes to creditors and debt collectors, and just as important that they know who to call when one of these parties has violated their rights.

Call Our Florida Debt Defense Lawyers Today

You have many concerns when you are suffering from a significant amount of debt, and one of those may be whether or not someone is going to call people you know about your debt. Fortunately, Florida law prohibits debt collectors and creditors from talking to anyone about your debt, so your privacy is protected. If a debt collector has illegally contacted someone about your debt, our Fort Lauderdale debt defense attorneys at Loan Lawyers are here to help. We have defended thousands of borrowers facing debt lawsuits, will inform you of the rights you are entitled to, and make sure that debt collectors uphold them. Call us today at (954) 807-1361 or contact us online for a free consultation.

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Steps to Take to Start the Bankruptcy Process

If you are dealing with financial obligations that you cannot afford to pay, bankruptcy may be your best option for improving your situation. While many people are hesitant to file bankruptcy, there is no reason to be ashamed about doing so.

Filing bankruptcy can allow you to get a “clean slate” and live debt-free. However, because bankruptcy laws are so complex, filing for bankruptcy can be an intimidating and challenging process.

For many years, the bankruptcy attorneys at Loan Lawyers in Fort Lauderdale, FL have been helping individuals pursue bankruptcy so they can get a fresh financial start. Contact the experienced Loan Lawyers today to schedule a free, no-obligation review of your financial situation. We can provide free legal advice about the steps in the bankruptcy process.

If you need to start the bankruptcy process, Loan Lawyers recommends that you take the following steps:

Step 1: Find a Bankruptcy Attorney

It’s critical that you find an experienced bankruptcy lawyer who will have your best interest in mind and who will be forthright and honest about your best options – whether it’s bankruptcy or another route altogether. Make sure that you are comfortable with the bankruptcy attorney you select.

Step 2: Conduct a Bankruptcy Counseling Session

In the majority of bankruptcy cases, you will need to get credit counseling within 180 days before filing for bankruptcy protection. You must also complete a course on debt management before you are eligible to have your debts discharged.

The bankruptcy counseling session is intended to ensure you have exhausted all other options and decrease your chance of having to make another visit to the bankruptcy court in the coming years.

A pre-bankruptcy counseling session with an approved provider should include:

A review of your finances
Information on the alternatives to bankruptcy
A plan for your personal budget

Credit counseling sessions typically last about 30 minutes and can be completed online, in-person, or over the phone. If you cannot afford to pay for the sessions, you may request a fee waiver before the session begins. Depending on where you live, a counseling session generally costs around $50.

Step 3: Complete a Petition and Paperwork

The bankruptcy petition consists of forms and schedules. If you are married, you must complete just one set of forms with information for both you and your spouse. Your particular court may require local forms.

Your bankruptcy lawyer will complete the paperwork on your behalf. Make sure you do not omit important information about your finances on your bankruptcy disclosures. This can result in your filing being delayed or even dismissed.

Step 4: Meet the Trustee

It’s the responsibility of the trustee to review your bankruptcy forms and investigate and verify your financial information. The trustee must make sure your bankruptcy claim is not fraudulent. Your trustee is also responsible for managing your assets, including collecting your property, converting your assets to cash, and distributing the proceeds to your creditors.

Step 5: Attend a Meeting of Creditors

The meeting of creditors is when the trustee and your creditors get a chance to ask you questions under oath about your petition and the documents you are required to provide to the trustee.

The meeting of creditors is basically a hearing used to verify that the information contained in your bankruptcy papers is complete and accurate. You will also be required to prove your identity by presenting two forms of identification. These steps in the process of filing for bankruptcy help prevent fraudulent filings from occurring.

How the Bankruptcy Attorneys at Loan Lawyers Can Help

At Loan Lawyers, we are experienced consumer rights attorneys ready to use our skills, knowledge, and resources to develop a comprehensive debt solution strategy for you. We are prepared is to take on your burdens, resolve your issues, and give you confidence in knowing you are on the path to a better future.

To schedule a free initial consultation, call now or reach out to us online.

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Monday, 10 August 2020

Has Your Bank Paused Mortgage Payments?

Has your mortgage loan servicer put you in a forbearance without you even asking? If so, watch out. You might have thought that you could breathe a sigh of relief without making mortgage payments for a few months, but they may be setting you up for failure and ultimately a foreclosure.

Several news outlets have reported that Wells Fargo put some mortgage loans into forbearance without any request from the homeowner. This can, for many will, have a cascading effect of misfortunes. First off, putting you into a forbearance without your request could serious damage your credit.

Secondly, what happens at the end of the forbearance period? They may require you to make all missed payments during the forbearance in one lump sum. Don’t have that money laying around? Well, they will begin foreclosure proceedings at some point. Trust us, no loan servicer has your best interest at heart. You are not their client, you are their product. Their clients are the big banks, the loan investors and their shareholders. We have seen mortgage companies take advantage of people thousands of times over the years. Do not think it won’t happen to you.

How Loan Lawyers Can Help?

If you have been put into a forbearance by Wells Fargo, or any other mortgage loan servicer, that you did not request, get legal help now before it snowballs into a much bigger problem. If this has happened to you, we will give you a free consultation, and if we take your case, it will be handled on a contingency fee basis, meaning there will be no legal fees or costs unless there is a recovery.

Further, in many instances, the loan servicer will have to pay your legal fees and costs for you. If you have been put into forbearance without requesting it, the bank is not doing you a favor. Again, they may be setting up for trouble down the road. Do not take this lightly. Call us now for your free consultation at 1-888-FIGHT-13.

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Friday, 7 August 2020

Foreclosure Mediation FAQs

Florida is a judicial foreclosure state, meaning that all foreclosures must go through the court. This does not necessarily mean, though, that you have to go to trial when your lender is foreclosing on your home. You may have many options; one of the most popular is mediation.

Mediation is often highly misunderstood by those that have never been through it before. Below are the answers to some of the most frequently asked questions surrounding mediation so that if you are facing foreclosure and want to consider mediation, you will know what to expect.

How Does Mediation Work in Foreclosure Cases?

Mediation is a process in which you will meet with a mediator, the lender, and possibly your attorney to partake in negotiations. A mediator is a neutral third party that helps the two sides discuss their issues and come to an agreement, but the mediator does not make any decisions. The mediator is simply a facilitator who will encourage the two sides to reach an agreement more efficiently.

Where Do Foreclosure Mediation Meetings Take Place?

There are a number of places foreclosure meetings may be held. The two most common are either in the mediator’s office or in the courthouse. A foreclosure defense lawyer can arrange for the meeting to take place and direct you on where to go.

Is Mediation Worth It?

If you are facing foreclosure, you may already be exhausted about the fact that you cannot pay your mortgage, and you may wonder if mediation is worthwhile, or if it will only drag out the inevitable. It is important to understand that mediation can resolve a number of legal issues. Lenders do not want to own homes and foreclosing is a lengthy and expensive process for them. Due to this, they are often quite willing to work out a solution during mediation, and that solution may allow you to stay in your home.

How Much Does Mediation Cost?

The cost of mediation will vary depending on the mediator who is chosen to conduct the meetings. However, you will likely not have to pay for them if the mediation meetings are successful and you come to an agreement. In this scenario, the lender or mortgage servicer will pay the fees associated with mediation. If you are not successful during mediation though, and you end up going to trial anyway, the lender or mortgage servicer can ask the court to require you to pay them the fees they covered for mediation.

Will the Mediator Decide On My Case?

No. The role of the mediator is quite clear, and it is important to understand what that role entails. A mediator will talk to each side privately to determine what their goals are, and then bring all parties together to discuss the issues together and to enter into negotiations. Mediators do not make any decisions, judgments, or recommendations on the outcome of the case. They are there strictly to facilitate discussions and negotiations so the two sides can reach an agreement.

What Will the Mediator Tell the Judge?

Very little. Mediation meetings are confidential and the mediator will only tell the judge whether the case has been settled or not. Any discussions that took place during mediation are inadmissible if the case goes to trial. If mediation is unsuccessful and the foreclosure lawsuit goes forward, the mediator still has a responsibility to keep anything said during mediation discussions confidential.

Can I Bring Exhibits and Witnesses to Mediation?

No. It is important to remember throughout the process that mediation and trial are two very different things. During mediation, you will discuss the situation with the other side, your attorney, and the mediator, but there are no opening or closing arguments, witnesses, testimonies, objections, or exhibits. You can bring documents that explain your financial situation and why you have missed mortgage payments. You should submit any documents you want to bring to mediation to your lender or their attorney before mediation begins so they can review the documents beforehand.

Do I Have to Testify?

Again, mediation meetings are not a trial, nor are they an official court hearing. Mediation is only a negotiation process, even if you are using a courthouse conference room to do it. Usually, lenders are present via speakerphone. You should listen and take part in the discussion when appropriate, but this is not official testimony.

Can the Mediator Advise on My Case?

You may think that because there is a mediator present, you do not have to work with a foreclosure defense lawyer. This is not true. The mediator is a neutral third party who is only there to foster discussion and compromise. They cannot provide you with legal advice, although they may point out issues with each side’s arguments and discuss the costs and downfalls of entering into litigation compared with agreeing on a settlement.

What Options Will Be Discussed During Mediation?

If your lender has started the foreclosure process, you may think you are out of options. This is also untrue. During mediation, you and the lender or mortgage servicer may reach an agreement on a loan modification, forbearance plan, a short sale, or a deed-in-lieu of foreclosure.

What if We Do Not Settle?

Although many foreclosure cases settle during mediation, this is not always the case. If you and your lender cannot agree on a settlement, several things may happen. The attorneys for both sides may agree to continue negotiations at a later date, the mediator may schedule a follow-up mediation, or you may be able to keep working with the lender’s loss mitigation department. Your attorney will advise on which option is best for you.

Do I Need a Florida Foreclosure Defense Lawyer?

Regardless of whether people use mediation or not during their foreclosure case, they often enter the process alone, which is a mistake. A Fort Lauderdale foreclosure defense lawyer will ensure that your rights are protected and can guide you through whichever process you choose. If you are facing foreclosure, our knowledgeable attorneys at Loan Lawyers will do all of this and more. Call us today at (954) 523-4357 or contact us online to learn more.

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How to Answer a Debt Collection Summons

No one ever wants to face a debt collection lawsuit. Unfortunately, if you have gotten very behind on your debt, this is an action the debt collector may take. If they are successful with their case, the court may allow them to garnish your wages, or take other steps to collect on the debt. Once the debt collector has started the proceedings, they will file a complaint with the court and you will be served with a summons. Ignoring the summons and not answering the lawsuit is one of the most surefire ways to ensure that you will lose your case. So, it is important that you do answer the summons, and that you understand how to do that.

What Is the Deadline for Answering a Debt Collection Summons?

After receiving the summons, you must act quickly. You only have 20 days to file your answer, or the debt collector will likely seek a default judgment against you, which would mean they automatically win their case. The 20 days starts the day after you are served with the summons, and you need to count every day, including weekends.

Address Each Issue in the Complaint

Along with receiving the summons, you will also receive a copy of the complaint the debt collector filed with the court. This complaint will outline every issue the debt collector wishes to resolve through a lawsuit. You must address each of these issues, which is often somewhat intimidating for people who have never faced a debt collection lawsuit before. The issues will be outlined in the complaint in numbered paragraphs, and it is each of these paragraphs that you should answer. You can do this by answering “Agree,” “Disagree,” or “I do not know.”

In many cases, lawyers advise that you disagree with everything in the complaint. When you do this, you are permitted to outline why you disagree with the statements. Disagreeing with each issue outlined in the complaint forces the debt collector to prove that point in their case.

Florida does have a template for a Florida Answer Form, but it may not allow you to provide all of the information you need, particularly if you want to explain your disagreement. A debt defense lawyer can help you draft the answer so it fully explains your arguments, and so that your response is filed properly.

Include Your Defenses

Just like explaining why you disagree with the complaints, you can also include different defenses within your answer.

The most common defenses in debt collection lawsuits include:

The debt is not on your account: Plain and simple, in order for a debt collector to be successful with their lawsuit, you must be responsible for the debt. If a different account number appears on the documents, the debt is not yours.
The contract was canceled: In certain cases, a debt contract may have already been canceled and when that is the case, you do not owe the creditor anything.
The statute of limitations has passed: Florida places a statute of limitations on debt at six years from the date of the contract’s payment dates. In many cases, if the statute of limitations has passed, the debt collector does not have a valid lawsuit. However, certain caveats apply to this defense. For example, if you have recently made a payment on the debt, that may extend the statute of limitations, and so this may not serve as a valid defense.
The debt has been completely or partially paid: If you have already paid the debt, the debt collector cannot seek those payments again in court. This happens more often than people think because debt collectors are humans, too, and sometimes make mistakes. They may not have posted a payment to your account and believe that you still owe those funds. When raising this defense, you must be able to prove that you made the payments with bank statements and other documentation.
You co-signed a loan and were not told of your rights: Co-signing a loan makes you responsible for the payments if the applicant falls into default on the debt. Co-signers have a lot of responsibility, but they also have rights. If you were not told of your rights, or your rights were infringed upon, that can serve as a valid defense in a debt collection lawsuit.

Any of these defenses, or others that a debt defense lawyer thinks are appropriate, can be included within your answer. It is important to understand that in most cases, being unable to repay the debt is not typically a defense.

File the Answer and Serve the Plaintiff

Filing the answer and serving the plaintiff may sound fairly straightforward, but there is a specific process you must follow. Start by making several copies of your answer. Mail one copy to the court and one copy to the plaintiff’s attorney, preferably by certified mail so you can guarantee the answer is received by both parties, and can prove it later, if necessary. In most cases, you will find the address for both the courthouse and the plaintiff’s lawyer. If you are working with a debt defense lawyer, they will handle filing the papers with the court and will also serve the plaintiff, making the process much easier for you.

Our Florida Debt Defense Lawyers Can Help with Your Lawsuit

If you have been served a summons and complaint by a debt collector, it is tempting to ignore it and hope it goes away. It will not. To protect your rights, it is imperative that you answer the complaint and our Fort Lauderdale debt defense lawyers can help. At Loan Lawyers, we have the necessary experience to review the facts of your case, and we will discuss with you any potential defenses you may have in your case. If you have received notice that a debt collector has taken legal action against you, call us today at (954) 523-4357 or contact us online to schedule a free consultation so we can get started on your case.

For more information about credit card or debt defense, click here to check our website.

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Monday, 3 August 2020

Debunking the 10 Biggest Foreclosure Myths

Just as the housing market in Florida was starting to recover from the 2008 recession, the pandemic hit, leaving many people furloughed and laid off from their jobs. Sadly, this means that thousands of people are unable to pay their mortgages and, even though certain lenders are offering different options, such options just will not be enough for all homeowners.

With so many people being unable to make their mortgage payments and potentially facing foreclosure, it is important that all homeowners understand the myths behind the process.

1. The Main Reason for Foreclosure Is Financial Irresponsibility

It is easy to think that if someone cannot pay their mortgage, it is because they made some poor financial decisions. This could not be further from the truth. As the pandemic has shown, sometimes extenuating circumstances arise that are out of the homeowner’s control.

Truthfully, homeowners have already shown that they are financially responsible by being approved for a mortgage in the first place. As such, if the home ends up in foreclosure, it is unlikely that financial irresponsibility is the reason.

2. The Foreclosure Process Starts After One Missed Payment

No homeowner ever wants to miss a mortgage payment, as it can make it much more challenging to bring the loan up to date. Some homeowners, though, think that their lender will start the foreclosure process after they miss just one payment, and that is not true. In most cases, lenders will wait until a homeowner has missed three monthly payments on their mortgage before they start the foreclosure process.

3. Lenders Want to Foreclose

Lenders will send notices and try to contact the homeowner repeatedly before starting the foreclosure process. Due to this, many people think that lenders are eager to foreclose. That is untrue. The foreclosure process is a long and costly one for lenders, and they would much rather keep homeowners in the property and continue to receive regular mortgage payments from them.

Lenders are usually quite willing to work with homeowners to ensure that payments happens and will only use foreclosure as a last resort.

4. Nothing Can Stop Foreclosure Once Homeowners Miss Mortgage Payments

Again, lenders do not want to foreclose and they usually want to work with homeowners to come up with a solution. Homeowners, though, have options even if the lender does start the foreclosure process.

There are many defenses available in foreclosure cases, including if the lender foreclosing does not hold the title or the note. A foreclosure defense lawyer can advise on the options homeowners have, and represent them throughout the process.

5. Homeowners Should Draw from Retirement Savings to Make Mortgage Payments

When homeowners realize that they will miss a mortgage payment, they often take drastic steps, such as drawing from their retirement savings.

Although it is important to cut back spending and look for ways to earn more income, drawing from retirement savings is not the best option. Prior to this point, homeowners should seek the help they desperately need, and that will still ensure their future is protected.

6. Buyers of Homes in Foreclosure Take Advantage of the Homeowner

It is true that there are some unscrupulous buyers and investors out there that will try to take advantage of the situation, and the homeowner. However, this is not always the case.

In fact, buyers can actually help homeowners who are facing foreclosure. Buyers will often approach a homeowner and agree to buy the home before the foreclosure process starts. This arrangement is beneficial for the homeowner because it will prevent the foreclosure from showing up on their credit report. It also benefits the buyer because they can often buy the home for lower than market value.

7. Homeowners Can Walk Away Once the Bank Forecloses

Although homeowners will have to leave the home if the bank is successful in foreclosing on the property, it does not necessarily mean that they are free and clear. If money is still owed on the mortgage after the home is sold, the bank can seek a deficiency judgment in court.

If a judge decides in the lender’s favor, they will issue an order requiring the homeowner to pay the deficient amount. A foreclosure defense lawyer can help a homeowner avoid this by properly drafting any agreement the homeowner enters into with the lender.

8. A Bankruptcy Will Stop a Foreclosure

There is some truth behind this myth. After a person files for bankruptcy, a judge will issue an automatic stay. This stops the foreclosure process and prohibits creditors and lenders from contacting you. However, it is also important to know that lenders can ask the judge to lift the stay so they can continue with the foreclosure process. Some judges will allow this, while others will not.

Homeowners who file a Chapter 7 bankruptcy may stall the foreclosure process, but they will likely still lose their home. A Chapter 13 bankruptcy can help homeowners keep their home because a bankruptcy trustee will create a repayment plan that allows individuals to make delinquent mortgage payments over a certain period of time.

9. Homeowners Must Leave Their Home After Receiving a Foreclosure Notice

Receiving a foreclosure notice is definitely scary, particularly when homeowners think that they must immediately leave their home. Fortunately, this is not true. Once a lender starts the foreclosure process, homeowners usually have at least one month before they have to leave their home. Others have even longer than that, particularly if they have a valid defense to the foreclosure lawsuit.

10. Homeowners Do Not Need a Florida Foreclosure Defense Lawyer

The foreclosure process is a legal one and, as such, homeowners should always speak to a Fort Lauderdale foreclosure defense lawyer who can help. At Loan Lawyers, our attorneys can advise on the foreclosure process, and the defenses that are available that can help keep you in your home. If you are in fear of foreclosure, call us today at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how our experience can help you.

For more information about foreclosure defense click here to visit our website.

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Tips for Using Your Credit Cards Wisely

Credit cards are a large part of a person’s financial life, and they can help individuals take control of their credit. Unfortunately, too many people do not use them properly and soon find themselves suffocating in debt. To avoid falling into financial hardship, anyone who owns and uses a credit card should know some important tips about how to use them wisely.

1. Choose Wisely

Consumers have a wide variety of choices today when it comes to the type of credit card they may select. Carefully consider whether you want one that has a low interest rate, a zero-percent balance transfer rate, or travel rewards. Then find a card that meets your criteria.

2. Understand the Fine Print

Before even being approved for your card, you will likely receive the terms and conditions of the card. It is crucial to thoroughly read through this, as this document explains the pricing of your card and associated fees.

After being approved, the credit card issuer will also send you a contract, which is a much longer document that outlines the rules for using your card. You must read through this agreement as well, so you understand what obligations you are expected to meet.

3. Open Your Credit Card Statement

Your credit card company will send you a statement every month detailing what transactions you have made, your minimum monthly payment, and your overall balance. You may think that you already know all of this information and so, you do not open the statement. It is imperative that you do though, and that you read through it.

It may list charges you did not make, or other errors that you can only correct if you know about them. Learning about them early is important so you are not paying for things that you shouldn’t have to.

4. Understand the Fees

Credit cards come with many different types of fees attached to them. Some have an annual fee that charges you just for having the card. Others have balance transfer fees, which only apply to specific transactions.

It is crucial to understand what fees you are being charged and how much they cost, so you can reduce the amount you pay for your card.

5. Understand Your Rights

As a credit card holder, you have certain rights. For example, the date your payment is due must be the same date every month, and the credit card company must send you the statement at least 21 days before the payment is due.

If you do get behind on payments, the Florida Consumer Collection Practices Act and the federal Fair Debt Collection Practices Act prohibit certain behaviors by creditors. Both of these acts prohibit debt collectors from calling you at certain times of the day and limit the number of times they can contact you.

6. Repay As Much As You Can

Even though your credit card statement will only ask you to make a small minimum monthly payment, you should pay as much as you can. Ideally, you should pay off your entire balance in full each month. This way you can avoid paying interest on the remaining amount that still needs to be paid off.

When you cannot pay the entire balance off, you should try to pay as much as you can to avoid those interest charges and keep the cost of your card down.

7. Focus on One Card at a Time

If you have racked up debt on multiple credit cards, you may think that paying a little down on each one every month is the best way to get rid of your debt. This, however, is not true. Instead, any time you have extra money or want to pay off money on your credit cards, focus on just one at a time.

This will free up credit in case you need it in the future, and help you avoid interest charges on at least one card. When deciding which card to start with, choose the one that has the highest interest rate.

8. Avoid Cash Advances

Using your credit card to take out a cash advance is the most expensive type of credit card transaction you can make. The interest on that transaction will start accruing right away, so no matter when you pay it back, you will be further in debt. Always use your credit card to make purchases instead of using it to take out cash. It will save you money in the long run.

9. Do Not Carry Too Many Cards

Once you have too many credit cards, it will become impossible to manage them. You will have too many due dates to keep up with, and you may find that the payments are becoming unmanageable.

There is no set amount for how many credit cards are ‘too many’ for one person, as it varies with each person’s financial situation. However, if you are finding that you are already having trouble managing multiple cards, it is a sign that you have too many.

10. Continue to Look for Better Deals

One of the biggest advantages of carrying a credit card is that it can increase your credit score, which may mean that over time you will qualify for a better deal.

Credit card companies are also releasing new credit cards all the time in order to offer better deals to customers and bring in more profits. You should always be looking for a credit card that will do more for you and potentially save you money, particularly as your credit score starts to improve.

A Florida Debt Defense Lawyer Can Help if a Creditor Takes Action

Debt collectors will only allow unpaid debt to go on for so long before they take legal action to recover it. If a debt collection company has taken legal action against you, it is important to know that there are defenses available. At Loan Lawyers, our Fort Lauderdale debt defense lawyers know what those defenses are and how to use them effectively to give you the best chance of a positive outcome. When a debt lawsuit has been filed against you, call us at (954) 523-4357 or contact us online to schedule a free consultation to learn more about how we can help.

For more information about credit card or debt defense click here to visit our website

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Tuesday, 25 August 2020

What Is a Loan Modification?

Collect and Review All Loan Documents

Communicate with the Lender

Qualifying for a Loan Modification

When determining whether you qualify, a lender will consider the following factors:

Talk to an Experienced Foreclosure Defense Lawyer

When working with a foreclosure defense attorney, your attorney will:

Our Florida Foreclosure Defense Lawyers Can Help with Your Case

Determine if the Debt Is Yours

Determine if the Statute of Limitations Has Run Out

Disputing the Debt

Get Copies of Your Credit Report

Holding Debt Collectors Accountable

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Thursday, 20 August 2020

The Right to a Trial

The Right to Defend

The Right to Discovery

The Right of Proof

The Right to Counterclaim

Our Florida Foreclosure Defense Lawyers Will Uphold Your Rights

What Is a Debt Collector?

When Is the Collector Calling?

Do You Want to Make the Debt Collector Stop Calling?

Is the Debt Yours?

Has the Statute of Limitations Expired?

Has the Debt Collector Upheld Your Rights?

Should You Repay the Debt You Owe?

Do I Need a Florida Debt Defense Lawyer?

Monday, 17 August 2020

What Not to Do Prior to Filing Bankruptcy

Some of the most common mistakes people make when they file for bankruptcy include:

What Not to Do After Filing Bankruptcy

The most common of these mistakes are as follows:

Our Florida Bankruptcy Lawyers Will Ensure You Do Not Make Mistakes

Debt Collectors Only Call About Legitimate Debts

Ignore Your Debt and it Will Go Away

Debt Collectors Do Not Take Legal Action After the Statute of Limitations Expires

A Cease and Desist Letter Will Make Debt Go Away

You Can Remove a Debt from Your Credit Report by Paying It

Making Payments Means Debt Will Stay on Your Credit Report Longer

You Can Tell Debt Collectors to Stop Calling You

Debt Collection Calls Stop if You Make Partial Payment

Settling a Debt Improves Your Credit Score

You Can Go to Jail for Unpaid Debt

Debt Collectors Will Garnish Your Wages

You Can Pay the Original Creditor Instead of the Debt Collector

Our Florida Debt Defense Lawyers can Dispel More Myths

Thursday, 13 August 2020

What Is Foreclosure?

The Foreclosure Timeline

How a Lawyer Can Help with Your Foreclosure Case

Throughout the foreclosure process, there are a number of ways an attorney can help with your case. These include:

Call Our Florida Foreclosure Defense Lawyers Today

Contact Under the Fair Debt Collection Practices Act

Contact Under the Florida Consumer Collection Practices Act

Seeking Damages for Third-Party Disclosure Violations

Call Our Florida Debt Defense Lawyers Today

If you need to start the bankruptcy process, Loan Lawyers recommends that you take the following steps:

Step 1: Find a Bankruptcy Attorney

Step 2: Conduct a Bankruptcy Counseling Session

A pre-bankruptcy counseling session with an approved provider should include:

Step 3: Complete a Petition and Paperwork

Step 4: Meet the Trustee

Step 5: Attend a Meeting of Creditors

How the Bankruptcy Attorneys at Loan Lawyers Can Help

Monday, 10 August 2020

How Loan Lawyers Can Help?

Friday, 7 August 2020

How Does Mediation Work in Foreclosure Cases?

Where Do Foreclosure Mediation Meetings Take Place?

Is Mediation Worth It?

How Much Does Mediation Cost?

Will the Mediator Decide On My Case?

What Will the Mediator Tell the Judge?

Can I Bring Exhibits and Witnesses to Mediation?

Do I Have to Testify?

Can the Mediator Advise on My Case?

What Options Will Be Discussed During Mediation?