Is There Still Time to Stop Your Foreclosure?

If you have missed a mortgage payment or two, or the bank has already started the foreclosure process, you may wonder if it is already too late to stop it. Foreclosure is an exhausting and time-consuming process and throughout it, you will find that you are not only battling the bank, but also strict legal deadlines. Borrowers often feel as though they are rushing up until the last minute to stop the bank from taking back their home.

In Florida, there are three phases of the foreclosure process and you may have the opportunity to stop the foreclosure during any of these. The three phases are pre-foreclosure, the foreclosure sale, and the right of redemption. Below we will delve further into each of these three phases, explain how they apply to a foreclosure case, and what you can do to stop the process during each.

Stopping a Foreclosure During the Pre-Foreclosure Phase

If you have already missed a mortgage payment but the process has not extended beyond that, you are considered to be in the pre-foreclosure phase. During this phase, it is generally easiest to stop the foreclosure process.

The bank will notify you of the missed mortgage payment during the pre-foreclosure phase, but that does not mean they have taken legal action. The length of this phase will depend based on specific facts in your case. However, under the Dodd-Frank Act, you will have at least 120 days before the lender can file a foreclosure lawsuit with the courts. These lawsuits are necessary because Florida is a judicial foreclosure state.

The Dodd-Frank Act is federal legislation that was enacted as a result of the housing crisis in 2008. According to the Dodd-Frank Act, lenders and servicers alike are prohibited from filing a foreclosure until the borrower is over 120 days behind on their mortgage. Once 120 days have passed, a servicer can publish the notice that you defaulted on your mortgage and can sell the home during a foreclosure auction, according to Florida law.

In some cases, it is possible to stop foreclosure after the 120-day period by applying for loss mitigation with the lender. To do this, you should contact your lender and ask to speak to the Loss Mitigation Department before the 120-day period has expired. Once you have submitted the loss mitigation package, the bank must tell you whether you are eligible for loss mitigation. However, the lender must also review your application for loss mitigation, which can delay them from continuing on with litigation.

Stopping Foreclosure During the Foreclosure Sale

After the lender files a ‘Notice of Default’ with the court, along with their legal complaint, the next step in the process is a public sale. The length of time this takes usually depends on the schedule of the court, but it is typically between 180 and 200 days to finalize an uncontested foreclosure. An uncontested foreclosure is one in which the borrower does not try to fight the process. If you contest the foreclosure though, you can extend this phase of the process.

To do this, you must raise one of several foreclosure defenses. These include:

• Lack of standing: To sue you for foreclosure, the bank must have standing. This means that they must have something to lose and typically requires that the bank prove they hold the mortgage loan. When the lender cannot prove they have standing, they cannot proceed with the foreclosure lawsuit.
• Lack of notice: Before the lender can proceed with a foreclosure lawsuit, they must first notify you that you are behind on mortgage payments. After filing the lawsuit, the bank must also provide notice to you that they have started legal action. When lenders do not comply with the appropriate notice periods, it can serve as a foreclosure defense.
• Unclean hands: Proving that the lender has unclean hands means you must prove the lender is at least partly at fault for the foreclosure. Unclean conduct can include behavior that is unconscionable, activity that is illegal or fraudulent, or if the lender acts in bad faith.
• Improper accounting of mortgage payments: State and federal law outline certain regulations and rules that must be properly applied to payments and charges associated with mortgages. When lenders fail to follow these accounting laws, it can result in your foreclosure case being dismissed.
• Failure to comply with HUD requirements: Under the law, lenders must also notify borrowers about their options for loan counseling that are available from the U.S. Department of Housing and Urban Development (HUD). When they do not, that failure to act can be used as a foreclosure defense.

When fighting foreclosure, you should always speak to a foreclosure defense lawyer that can advise on the best defense for your case.

Stopping a Foreclosure with the Right of Redemption

While it may not sound possible, you can stop a Florida foreclosure once the auction of the home is complete by using the right of redemption. The right of redemption is a statutory law that states borrowers have a certain period of time, usually fewer than 10 days, to pay off the remaining debt, the principal balance, and the costs and interests before the certificate of sale is filed or the time specified in the judgment, whichever date is later. The amount you must pay to stop a foreclosure using the right of redemption will be outlined in the foreclosure order.

Do Not Fight Foreclosure On Your Own. Our Foreclosure Defense Lawyers in Florida are Here to Help

If you have already missed a mortgage payment, or even more, you may wonder if it is too late to stop the foreclosure process. You may also be surprised to learn that you have plenty of time. At Loan Lawyers, our foreclosure defense attorneys in Fort Lauderdale can review the facts of your case, advise on how to stop the foreclosure, and build the strongest defense for your case. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation with one of our skilled attorneys so we can review your case.

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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Trying to Avoid Using Credit Cards? Here is How to Do It

When you are trying to get out of debt, one of the first pieces of advice you may receive is to stop using your credit cards. The advice is sound, as using a credit card essentially means that you are using money that you do not have yet. While credit cards have many useful purposes, when you rely on them too much it can actually hurt your finances and result in you spending more money than you earn. This can have a snowball effect, as it will add to the amount of debt you owe every month, making it easier for you to fall behind on your payments and ultimately hurting your credit score.

Unfortunately, avoiding using your credit cards is something that is much easier said than done. Breaking the cycle of using credit is not easy, but there are some money-management strategies you can use to put you back in charge of your spending and help your financial future rather than hurt it.

Draft a Budget

Creating a budget is not glamorous or exciting, but it is a necessary step when you are trying to stop spending on your credit cards. While many people have been advised to create a budget, few people know how to actually do it. You can either use budgeting software to make it easier, or draft your budget manually.

The first step when creating a budget manually is to determine how much you earn every month and the total amount of your expenses every month. When calculating their income, many people simply use the amount they receive on their paycheck every week or every two weeks. However, it is important to consider any child support or government benefits you receive, and include those as well.

When determining your monthly expenses, start with your recurring expenses, such as rent, your mortgage payment, and the amount you spend on utility bills. Then keep track of your unexpected expenses, such as the daily coffee you buy on your way to work, and other habits that cause you to rely on your credit cards.

After you determine how much you earn and how much you spend every month, subtract your expenses from the amount you earn. This is your discretionary spending allowance, or the amount you have available to spend after all your other purchases and bill payments. If you do not have any money left for discretionary spending, or your amount is in the negative, you may be relying on credit cards too heavily.

At this point, analyze your spending habits and determine where you can cut extra expenditures. You can also figure out ways to earn more money, which will ultimately give you more in your discretionary spending allowance. While no one gets excited at the thought of creating a budget, it is an essential step when trying to figure out how to avoid using your credit cards.

Start Relying on Cash

After determining how much discretionary spending you have available every month, you should then start carrying that amount on you in cash. To ensure you do not run out before the week or month is over, you can divide it up by the number of days on your budget. Then, each day, only carry that amount. The trick is to stop carrying credit cards on you. This way, you are not tempted to use them for certain purchases and you will never spend more than you have because you have no other option. Additionally, you also will not go further into debt and will not rack up interest charges.

Once you run out of your discretionary spending, it is imperative that you do not spend any more until you have more available in your budget. Otherwise, you may inadvertently end up relying once again on your credit cards, defeating the purpose of only carrying that amount.

Use Debit Cards when Necessary

A debit card is linked directly to your bank account and so, they make it impossible to spend more than you have. However, you still need to be very careful because you obviously do not want to drain your bank account, which could result in you using credit cards rather than a debit card. If you find you are depleting your bank account on a regular basis, or close to it, you should then revert back to only carrying cash with you. Still, debit cards can bring all the benefits of credit cards, including allowing you to take money out of your bank account easily, and carrying plastic instead of bills and coins.

Make it Difficult to Access Your Credit Cards

One of the most effective ways to stop using your credit cards is to make it more difficult for you to do it. Again, one of the benefits of credit cards is that they are convenient and if you take that convenience away, they become much harder to use.

There are several ways you can do this including:

• Put your credit card on ice: Perhaps one of the oldest methods to make it more difficult to use your credit cards is to freeze it. Place your credit card in a dish, fill it with water, and simply freeze it. Once frozen, it will take several hours before the block of ice is defrosted, which should be enough time to realize you do not want that impulse purchase after all.
• Freeze the card: Many credit card issuers will offer to place a temporary hold, or freeze, on your card. You are still responsible for making payments on the card, but you will not be able to use it until the freeze expires.
• Cut the card up: When you want to stop using credit cards for a significant period of time, you should cut the card up. This will prevent you from spending on the card, but does not close your account, which can ultimately hurt your credit.

When these methods are not enough and you accumulate too much credit card debt, it may be time to seek legal help.

Call Our Debt Defense Lawyers in Florida to Learn About Your Legal Options

When you are suffering from debt, the first step you should take is to try and avoid using your credit cards altogether. Unfortunately, these methods are not always enough. If a creditor has taken legal action against you, it is important to know that you have options. At Loan Lawyers, we are debt defense attorneys in Fort Lauderdale who can explain what those options are, and advise on which one is best for you. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation with one of our 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.

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Should You Fight Foreclosure?

When you have missed some mortgage payments and are in fear of foreclosure, you have a big decision to make. Should you allow the foreclosure process to continue, or should you fight it and try to stay in your home? While your emotions may try to dictate the answer, there are some important financial considerations that you should think of, as well.

Before making your final decision, you must evaluate your financial situation, which has likely changed since the time you purchased your home. Here, we will look at why foreclosures are so common in Florida, and the questions you should ask yourself if you are in fear of losing your home.

Why Are Foreclosures So Common in Florida?

It often seems that Floridians are at a disadvantage compared to the rest of the country because the sad truth is that foreclosures are extremely common in Florida. In fact, Florida has been a leader in foreclosures in the United States for several years. When considering the reasons for this, it is really not surprising to hear.

The first factor that led to so many foreclosures in Florida was the subprime mortgage crisis. During the years leading up to the Great Recession, lenders were eager to finance homes Floridians simply could not afford. Borrowers did not even always know they were taking on more than they could handle because very little was needed for a downpayment at that time, and interest rates were incredibly low. Lenders took advantage of that and financed a great number of homes in a very short period of time.

Once the housing crisis hit, many people simply left Florida, leaving behind their underwater homes that were impossible to sell, and instead letting the homes go into foreclosure. Florida, like the rest of the country, started to rebuild and borrowers in the state found themselves in a much better position after just a couple of years. Not long after, the COVID-19 pandemic hit and that left borrowers struggling again.

State and federal governments tried to thwart another housing crisis by instating moratoriums and other financial relief intended to help homeowners get through the pandemic. Unfortunately, those measures were short-lived and this past October, foreclosure filings once again increased in the state despite the fact that moratoriums were in place.

Due to the fact that foreclosures are so common in Florida, it is critical that homeowners determine whether or not they should fight it if they find themselves in the position that they may lose their home. If you have missed some mortgage payments, or the foreclosure process has already started, there are three questions to ask yourself when deciding whether or not you want to fight it.

Is There Equity in Your Home?

If you are facing foreclosure and you have equity in your home, you may want to fight foreclosure so you can hold onto that equity. The equity in your home is the difference between the amount you still owe on the home and the amount you can sell it for. If you are unsure of whether you have equity in your home, a real estate agent or a foreclosure defense lawyer may be able to advise on your home’s current worth.

However, you should never try to keep a home simply because you want to hold onto the equity. If you have equity in your home, you also need to consider if you will be able to afford your mortgage payments in the future. When you think you cannot afford your monthly mortgage payments, it may make sense to get rid of the mortgage and try to sell your home to protect your financial future.

Can You Afford the Mortgage Payments?

Many people pay at least 50 percent, if not more, of their gross income towards their mortgage every month. The more of their income they pay towards their mortgage, the less they have for the basic necessities of life, including food, transportation, utilities, and other out-of-pocket expenses, such as medication. In these situations, a person’s financial situation is simply not sustainable. If you are in this position, it may not make sense to fight foreclosure, particularly if you have lost your job or are in another position that will make paying your mortgage payments more difficult.

Generally speaking, you should put no more than 30 to 32 percent of your gross income towards your mortgage. However, this rule of thumb does not always apply. For example, a person that has a child with special needs will need to put more money towards childcare, so they may only be able to afford to put 20 or 25 percent of their gross income towards housing.

Can You Lower Your Debt?

Sometimes, keeping your home may be a simple matter of lowering your debt load so you can afford your mortgage payments.

The following tips can help determine if you can lower the amount of debt you pay on a monthly basis, or if you should let your home go into foreclosure.

• Make a budget: Take a real hard look at your income and expenses by writing them all out. If there are expenses you can get rid of, you may be able to afford your mortgage. If all of your expenses are essential though and you cannot get rid of any, you may have to let your home go into foreclosure.
• Lower your mortgage payments: Before you give up and allow your home to go into foreclosure, you should always speak to your lender. Many lenders will offer loan modifications or other options that may allow you to stay in your home.
• File bankruptcy: Certain types of bankruptcy, such as Chapter 13, will allow you to restructure your mortgage payments, as well as your other debt, so you can keep your home.

Call Our Foreclosure Defense Lawyers in Florida Today

One of the best ways to determine if you should allow your home to go into foreclosure is to speak to a foreclosure defense lawyer in Fort Lauderdale. At Loan Lawyers, we know the defenses available that can help keep you in your home and we will negotiate with your lender or fight your case in court to give you the best chance of success with your case. Call us today at (954) 807-1361 or fill out our online form 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.

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Examining the Biggest Myths Surrounding Credit Scores

The world of credit scores is often confusing and intimidating. Many people do not fully understand the factors that can increase or lower a credit score. This is largely because there are so many myths floating around out there about credit scores and what hurts them and what helps them. Here we will examine some of the biggest myths surrounding credit scores and the truth behind them.

Checking Your Own Credit Score Will Lower It

If many different creditors check your credit score in a very short amount of time, it will likely reduce your overall score, which is likely how this myth got started in the first place. Many people do not realize, though, that there are different types of credit inquiries. A hard inquiry is the type creditors will make when determining whether or not to give you credit. Too many of these in a certain period of time and yes, it may lower your score.

However, when you check your own credit score through a banking app or other form, it is a soft inquiry. The major credit reporting bureaus, such as TransUnion and Equifax, also allow you one free credit report every year. These are also soft inquiries and will not lower your score. In fact, you are encouraged to check your credit score periodically to see where it is and if it needs improvement.

Opening a New Credit Account Will Lower Your Score

Sometimes, opening a new credit account will lower your score, but that is not always the case. You need some credit history before you are considered low risk to creditors. So, if you do not open any credit accounts, you will not have a credit history, which ultimately lowers your score. On the other hand, if you open a credit account and can pay off the credit you use on time, it is actually very healthy for your score.

Still, there are times when opening a new credit account will hurt your score. First, opening a new credit account will mean the creditor will make a hard inquiry, which could negatively impact your credit score. Additionally, if you open many new credit accounts at once, it may lower your score because it will seem as though you need to borrow more than you can afford.

Your Credit Score and FICO Score Are the Same Things

There is some truth behind this myth, but your credit score and FICO score are not necessarily the exact same thing. A FICO score is just one type of credit score, but there are other credit scoring systems out there as well. Most systems use the same range, typically between 300 and 850, but they use different algorithms and information to arrive at your score. Currently, most creditors do use the FICO system, so it is generally that score you should be most concerned about.

You Can Increase Your Credit Score By Paying Off Debt

Debt is not something anyone wants to deal with. Having a significant amount of debt will also make you seem like a high risk to creditors, so it is advisable that you pay it off when you can. However, this usually only applies to certain types of debt, such as a credit card.

If you have debt that is to be paid off in installments, though, and you pay off too much at once, this can actually hurt your credit score. Lenders want to see that you can pay off your debt, and also that you know how to manage your money well. If you pay off a debt in eight months when it was supposed to take over one year, lenders will think you cannot properly manage your money and so it could lower your score.

It Does Not Matter How Much of Your Credit You Use

You may think that because your credit card has a $3,000 limit, that is how much you can spend. In fact, that is true, but maxing out your credit card will only hurt your credit score. When lenders look at your credit history, they want to see that not only can you repay your debt, but also that you can manage your credit wisely. To do this, they will consider how much debt you have, and how much you are using. This is known as credit utilization.

While you should use some of your credit to show that you can pay it off, you should also try to keep your utilization under 30 percent. So, if you have a credit card limit of $3,000, you should try to use no more than $900, or 30 percent, of that limit.

Closing a Credit Card Will Increase Your Credit Score

This is perhaps one of the biggest myths about credit scores, and it is absolutely untrue. If you voluntarily close a credit account, it automatically increases your utilization rate because you do not have as much credit that is not being used. That will ultimately lower your score. In other instances, a creditor may close an account simply because you have not used it in some time. To avoid this, make a small purchase with your credit cards from time to time to keep the account open without taking on more debt than you can afford.

There Is No Such Thing as a Perfect Credit Score

This is not true. However, you should not be concerned if you have never achieved the 850 that generally constitutes a perfect score. Once your credit score is considered good, there really is not a lot of benefit to getting a higher one. Try to keep your credit score at a fairly positive number, and do not become too concerned if you cannot seem to get it any higher.

Drowning in Debt? Our Debt Defense Lawyers in Florida Can Help

The myths about credit cards may seem like harmless untruths, but they are much more than that. In fact, they can sometimes lead to a person drowning in debt, and maybe a creditor even taking legal action. If a creditor has threatened to file a lawsuit against you, or has already started the process, our debt defense lawyers in Fort Lauderdale are here to help. At Loan Lawyers, we will answer all of your questions surrounding your debt, and prepare a defense to give you the best chance of success with any lawsuit filed against you. 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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Have You Been Contacted Or Sued By Persolve Recoveries, LLC?

If you have been contacted by Persolve Recoveries, LLC or if they have sued you, please contact our office.  You may be entitled to financial compensation for violation of the Fair Debt Collection Practices Act.

We will look into your situation for free and if we are able to uncover any wrongdoing by Persolve Recoveries, LLC we will take your case on contingency, which means no fees or costs unless we obtain a recovery for you.  Please note that a claim for a violation of the Fair Debt Collection Practices Act must be brought within one year of the violation, so do not delay.

It does not matter whether you owe Persolve Recoveries, LLC money or not, they still have to respect your consumer rights and follow the law.  Even if you have already paid them, or have already lost a lawsuit filed by them, we may still be able to obtain a recovery for you.

Do not delay, call Loan Lawyers right now for your 100% free consultation and case evaluation.  Call us right now at 1-888-FIGHT-13 to speak with an attorney.

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Do you Have a Loan with WebBank, LendingClub, Prosper, or Avant?

If you have a loan with WebBank, LendingClub, Prosper, or Avant, we are very interested in speaking with you.  Whether you are current on the loan, struggling to make the payments, or are already in default, you may be entitled to financial compensation.

Call Loan Lawyers right now for your free case review.  Plus, if we feel that you have a claim, we will take your case on contingency, meaning there will be no legal fees or costs unless we obtain a monetary recovery for you.

Most borrowers with loans generated by WebBank, LendingClub, Prosper, and Avant applied online and likely never read the fine print. These loans often have exorbitant interest rates and many consumers drown in the monthly payments.

The good news for you is that we have read fine print and based on what we have uncovered, you may be entitled to financial compensation.  Please contact Loan Lawyers at 1-888-FIGHT-13 for your free case analysis.  Again, it does not matter whether you are current on payments or not, we want to speak with you either way.

We can schedule your initial free consultation over video conferencing or in person, depending on your comfort level.  Call us now at 1-888-FIGHT-13 for your free consultation with an experienced consumer law attorney.

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Has PHH Mortgage Corporation Charged you Fees or “Assessed Expenses” After a Final Loan Modification?

Many homeowners have struggled to make mortgage payments, and a loan modification is one great way to save homes from foreclosure.  However, many loan servicers, including PHH Mortgage have charged fees and costs after the modification that are possibly improper.

Homeowners who thought the nightmare was over, and now have a mortgage payment they can afford, find themselves back in the same position as before.  If you have done a mortgage loan modification with PHH Mortgage Corporation and they started charging additional fees and costs, often couched as “assessed expenses” or some other cryptic phrase, we are definitely interested in speaking with you.  You may have a case and be entitled to compensation for being improperly charged these “assessed expenses” after your final loan modification.

We will give you a 100% free consultation with an attorney to go through your specific situation.  If we find that you have been improperly charged for these “assessed expenses” or other fees and costs, we will take your case on contingency.  That means there will be no fees or costs unless we obtain a recovery for you.

Whether it is PHH Mortgage Company or any other mortgage loan servicer that has charged you improper fees after a final loan modification, call us now for your free consultation at 1-888-FIGHT-13.  Do not wait until the issue gets worse, you want to nip the problem in the bud.  Call now.

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The Florida Supreme Court Issues Important Decision on Standing

For years, the courts in Florida have debated the idea of standing in foreclosure. While standing will still likely be debated in the courts, the latest decision from the Florida Supreme Court means that attorneys’ fees probably won’t be. Prior to the latest case, “No Standing, No Fees” was fairly standard in Florida. This meant that when a defendant or a homeowner facing foreclosure went to court to defend their case on standing, they could not go after the lender for attorneys’ fees, even if they won their case. Fortunately, that is no longer an issue.

To understand what this latest decision from the highest court in the state means, all homeowners should understand what standing is and how it affects their foreclosure case.

What Is Standing in a Foreclosure Case?

Standing was a major issue in foreclosure cases during the housing crisis of 2008. Even today, many homeowners raise the issue of standing as part of their foreclosure defense. So, what is standing in a foreclosure lawsuit?

First and foremost, Florida is a judicial foreclosure state. That means that before a lender can foreclose on your home, they must file a lawsuit with the court and win their case. To do this successfully, however, the lender must have standing.

In its most basic sense, standing refers to when a party files a legal action in which they have some stake in the outcome. The party who files the lawsuit must have suffered an actual injury by the wrongs they accuse the homeowner of doing in the original complaint. In other words, they must have something to gain or lose in the case.

For example, if your neighbor was injured due to the carelessness of someone else, you could not sue the at-fault party because you did not sustain an injury. The same is largely true in foreclosure cases. The lender has to have suffered an injury, such as a loss of mortgage payments, in order to bring a lawsuit. While this example does sufficiently explain standing, the issue does become a bit more complicated in foreclosure cases.

Mortgage lenders and servicers do not always keep their loans or mortgages. They often sell them in bundles to other companies and, when they do, they no longer have standing. The lender then cannot sue you for foreclosure because they have nothing to gain or lose in court.

Standing is a very common defense in foreclosure cases. The lender or servicer must prove that they are named on the mortgage or loan document. This is often very difficult for them to do because home loans are bought and sold, usually multiple times. When a lender or servicer cannot prove that they have standing, it is a valid defense and may allow you to keep your home unless the party that owns the loan decides to sue for foreclosure.

While standing is a common issue in foreclosure lawsuits, there is now one aspect of standing that will no longer be debated in court. That is whether or not defendants who are successful with their standing defense can claim attorneys’ fees. Now, this should no longer be an issue.

The Decision By the Florida Supreme Court

It was on December 31, 2020 that the Florida Supreme Court resolved an ongoing conflict between many of the appellate courts in the state. The issue focused on whether homeowners who successfully defend a foreclosure using the standing argument and win their case can try to recover their attorneys’ fees from the lender. The issue only presents itself when standing was raised in the case and provided the defense for the borrower.

In Page v. Deutsche Bank Trust Co. Americas, et al., the Florida Supreme Court ruled that the issue involving standing and attorneys’ fees required an interpretation of the Florida Statutes. According to the court’s published decision, the statute includes a fee-shifting provision, and the Court determined that borrowers should also be able to use the fee-shifting argument to recover their attorneys’ fees after a successful foreclosure case. If the lack of a lender’s standing is determined at the time the foreclosure lawsuit is filed, the borrower still has the right to attempt to recover their legal fees.

The decision is significant. The ‘No Standing, No Fees’ argument is one that lawyers have used extensively in appellate courts. The decision made in individual cases largely depended on where the case was heard. According to the First and Third Districts, borrowers were not allowed to go after their lenders and servicers for legal fees, even if they were successful in their defense by arguing a lack of standing. However, the Second and Fifth Districts of Florida had a contrasting opinion. In these courts, borrowers were not prevented from pursuing legal fees from their lender or servicer.

In practice, this means that borrowers can now recover their legal fees if they raise the issue of standing in court and are successful with it. It also means that this is now the law in all of Florida, not just in specific districts. In the future, lenders and services alike can expect several lawsuits filed by borrowers who are attempting to recover their attorneys’ fees.

The decision should also bring much-needed relief to homeowners. People generally fall into foreclosure because they are in financial hardship. Although attorneys’ fees are usually reasonable, any relief is welcome when a person is in foreclosure, and the latest decision certainly provides some.

Call Our Florida Foreclosure Defense Lawyers for Help with Your Case

If you are in fear of losing your home, especially if your lender or servicer has already started foreclosure proceedings, you need sound legal advice. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys pride ourselves on staying current with the law, and we have used that knowledge to help thousands of Floridians stay in their homes. We want to help you, too. When you are facing foreclosure, call us 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.

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Should You Buy Credit Insurance?

If you have a credit card, you may have been asked if you would like to purchase credit insurance for it. Sometimes, credit insurance is beneficial. It can help you avoid debt collectors and creditors filing a lawsuit against you and potentially garnishing your wages or obtaining a judgment against you to levy your bank account or place a lien on your property.

Other times though, credit insurance is just an unnecessary cost that may actually hurt you more than it helps. If a creditor has asked you if you want to purchase credit insurance, below are some important factors to consider before you make a decision.

What Is Credit Insurance?

Credit insurance, also sometimes known as payment protection insurance, is a type of insurance that is attached to a certain credit card account or loan. The insurance provides protection in the event that you can no longer make payments or pay the outstanding balance. Understanding the basics of credit insurance can help you make an informed decision about whether or not you want to purchase it. Still, there are important things you should take into consideration before making your decision.

Understand the Different Types of Credit Insurance

If a creditor calls you to ask about credit insurance and whether you are interested, they are likely working with an insurance company that is offering the insurance. Before you accept or decline the offer, you should know what type of insurance you will be purchasing. Different insurance companies offer different types of credit insurance that offer different types of protection.

The four most common types of credit insurance are as follows:

• Credit life insurance: This type of insurance will pay off the debt remaining on an account in case you pass away. It can help alleviate your family from the debt, but the creditor is named as the beneficiary on the credit insurance policy. Sometimes, borrowers already have life insurance or other types of protection set up for this unforeseen event, so it is important to consider if you do and if you need additional coverage.
• Credit disability insurance: As its name suggests, this type of credit insurance will cover your minimum monthly payment in case you suffer a physical disability and can no longer make the payments. The time period covered under these policies is usually quite restrictive and if you made any purchases after suffering the disability, those payments will likely not be covered.
• Involuntary unemployment credit insurance: This type of insurance will also cover your minimum monthly payment only in the event that you are involuntarily unemployed. Quitting your job is voluntary, but if you are suddenly laid off or your company downsizes, this insurance can help. Like disability insurance, any purchases you make after losing your job are not covered under this type of insurance.
• Property insurance: This type of insurance is rarely seen on credit card accounts but is more commonly used for personal loans. This insurance protects any property you may have used to secure a loan. It is essential to understand the terms of this type of insurance. If you have personal contents insurance or home insurance, your property is likely already secured, making this insurance unnecessary.

Understand Credit Insurance Promotion

Credit card companies will promote their credit insurance by asking you at the time of approving your credit application whether you want it. Additionally, they may also use a telemarketing company to call you and ask if you want this type of insurance after you have already received your card. It is essential to understand that if you say ‘yes’ to either company on the phone, you will be signed up for credit insurance. This agreement does not need to be in writing to be valid and does not require your signature. So, just like with anything else a credit card company offers you, it is essential that you understand what they are asking and what you are agreeing to.

Ask Questions

Asking the right questions can greatly protect you when deciding whether or not to purchase credit insurance.

The two most important questions to ask are as follows:

• What is included in the policy? It is crucial that you understand what is included in the policy so you will know what you are covered for. For example, if you already have a life insurance policy, you may not need credit life insurance. If you do not ask this question and the only coverage the insurance provides is credit life insurance, you will pay for something you do not need.
• Are there waiting periods? You may want to take out insurance due to your own personal situation. For example, you may know that you are about to be laid off from your job, so think that purchasing involuntary unemployment insurance is a good idea. However, if the insurance has a waiting period and that period will not expire before you lose your job, you may not have access to the protection you thought you did. Many types of credit insurance have a waiting period, and it is crucial that you understand what that is.
• Can I cancel at any time? The majority of credit insurance offers begin with a free trial and often, you must decide before the free trial is over. If you do not in many cases, you cannot cancel it at a later date, so it is important to know the restrictions that are important to you.

Also make sure that you understand everything that will be required of you before taking out the insurance. If you cannot understand the policy no matter how much it is explained to you, or if the representative you speak to is unable to answer your questions, do not take it.

Call Our Fort Lauderdale Debt Defense Lawyers if a Creditor Has Taken Action

Credit insurance can sometimes prevent a creditor or debt collector from taking legal action against you to collect a debt. Unfortunately, this is not always the case. If a debt collector has threatened to take legal action against you to recover their debt, our Florida debt defense lawyers are here to help. At Loan Lawyers, we have successfully defended thousands of borrowers in debt collection lawsuits and we want to help you, too. Call us today at (954) 807-1361 or fill out our online form 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.

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Why You Should Stay Away from Debt Consolidation Companies

The average American is currently carrying a personal debt of $90,460, according to Experian’s Consumer Debt Study. Carrying a large amount of debt can cause consumers tremendous stress and insecurity while also potentially negatively affecting their credit score. These factors lead many consumers to consider, “Is debt consolidation a good idea?”

While debt consolidation can sometimes work out, for many people, it causes increased debt and anxiety. If you find yourself in this frightening situation, you need Loan Lawyers, the foreclosure defense, debt defense, and bankruptcy solution law firm in Florida. Call us today to schedule a consultation.

Here are some of the disadvantages of debt consolidation loans:

There’s No Guarantee Your Interest Rate Will Be Lower

Many consumers turn to debt consolidation companies and loans because they want to prevent their debt from growing larger and to simplify things. They think that they will have one bill and a lower interest rate, so what is the disadvantage of a debt consolidation loan? This thinking may be inaccurate.

In his piece “The Truth About Debt Consolidation,” financial expert Dave Ramsey explains that a debt consolidation company does not have to offer a lower interest rate than what you are paying now. Any extension of credit to you will be based on your past credit behavior and your credit score.

If the debt consolidation company believes you are a poor credit risk, it may not offer you an improved interest rate. If you don’t pay attention or are desperate for any help, you may accept this rate and just wind up paying more in interest over the life of your debt.

Consolidating Your Bills Means You’ll Be in Debt Longer

One of the major disadvantages of debt consolidation loans is that you may wind up making payments over a much longer period than you would if you paid your debts out as originally agreed.

Consolidation companies often can offer a better rate or payment amount because you are ultimately taking more time to pay off the debt. Debt consolidation companies know that you are probably feeling financial distress and that a lower payment will make you feel better. However, when they “help” you make more payments over the life of your loan, they will receive more profit.

Additionally, debt consolidation companies often charge extra fees that add to the overall cost of your debt. These are charges you would not be subjected to had you not taken out a debt consolidation loan. Service fees, loan origination fees, and other charges may add thousands of dollars more to your debt. Some consolidation companies may charge a fee based on the total amount of debt you are consolidating with them.

Lower Interest Rates on Debt Consolidation Loans Can Change

If you do receive a lower interest rate, it may be only an introductory offer. This is especially true if you have opted to transfer a balance to a new credit card instead of debt consolidation companies.

These offers may say that you will receive a 0% rate or a low-interest rate to entice you. However, three or six months down the line, you may see that the attractive rate suddenly morph into an unattractive one. This can ultimately cause you to tack on additional debt.

If Your Behavior with Money Doesn’t Change

According to financial experts, the major disadvantage of debt consolidation loans is that debt consolidation does not cause you to change any of your money behaviors. This means that getting out of debt has a lot more to do with your relationship to money and how you manage it than it does with financial literacy.

Many people who take out a debt consolidation loan will transfer their credit card debt to the loan but then shortly after that run up their credit card balances again. This is because getting the consolidation loan did not get them to consider how they got into debt in the first place and how to avoid it in the future.

To build wealth, it is necessary to develop good money management habits and get to the core of why the problems arose in the first place. If you just take on more debt to pay off old debt, you might only be delaying the problem rather than working on proactive ways to resolve the issues once and for all.

Alternatives to Debt Consolidation You Should Consider

Using a debt consolidation company is not the only way to get out of debt. There are several alternatives that you might want to consider, such as:

• Decreasing Your Expenses – If you do not have enough money to make your obligations each month, you may look into ways to decrease your expenses, such as:
  • Moving to a less expensive home
  • Cutting out cable television
  • Reducing non-essential spending
  • Switching utility, phone, or internet service providers
• Increasing Your Income –In today’s economy, many people are adding “side hustles” to their careers. Adding a side-hustle, taking on overtime at work, driving for Lyft or Uber, or becoming a personal shopper for shut-ins are all ways to increase the amount of money you bring in the door. Even a little extra applied to the balances on your debt can get you out from under your debt burden sooner.
• Increasing Your Debt Repayments –If you can increase the amount of money you devote to debt repayment, you may be able to shave years off the life of your debt. Even a small increase in payment amounts can result in a big difference.
• Setting a Budget – Setting up a budget and then tracking your spending can show how much money you earn, expect for certain expenses, and spend. This can help you determine if you need to decrease expenses, increase income, or take other action.
• Working With a Credit Counselor – You might consider working with a credit counselor who can help analyze your situation and make recommendations on how to improve your financial outlook. They may also be able to reach out to your creditors directly to secure lower interest rates or a waiver of certain fees.
• Negotiating a Settlement – Another alternative is to negotiate a settlement directly with your creditor for an amount lower than your actual debt. This process usually cannot begin until the debt is in arrears for several months.
• Filing Bankruptcy – If you have done all you can to pay off your debt but are still having trouble making ends meet, you might need to consider the financial relief that bankruptcy can provide.

Contact Our Debt Solution Law Firm for a Free Consultation

If you are considering “Is debt consolidation a good idea?” or recently received an offer you want to vet, reach out for professional legal services from Loan Lawyers in Fort Lauderdale, FL. We are a foreclosure defense, debt defense, and bankruptcy law firm. We are committed to providing the financial solutions you need for peace of mind. Contact us today to learn more.

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Refinancing and Foreclosure FAQs

The COVID-19 pandemic has ravaged homeowners and business owners alike and has placed many in fear of losing their homes or operating spaces. Throughout the country, the delinquency rate currently stands at 6.3 percent, nearly double the 3.8 percent rate the country saw just one year ago. However, experts are saying that the pandemic has acted as a stress test for the economy and for homeowners. The Great Recession of 2008, it seems, greatly prepared both homeowners and banks, and it is expected the country will emerge from the pandemic far better than it did during the recession.

Still, that brings little hope to homeowners and business owners who are currently facing foreclosure. If you are in fear of losing your home or business, you may be considering refinancing your mortgage. Now is a great time to do it, as interest rates are extremely low. However, you likely have a lot of questions about the process. Below are some of the most frequently asked questions about refinancing to avoid foreclosure, and the answers to them.

Are Foreclosure and Loan Default the Same Thing?

Many people confuse the terms foreclosure and loan default and believe they are the same thing. They are not. Loan default is a breach of your mortgage contract. Once you miss even one mortgage payment, you are in loan default. However, it is unlikely that you would face foreclosure at that point. Typically, a lender will wait until you have missed two or three mortgage payments before starting the foreclosure process.

A loan default will lead to a foreclosure if you do not bring the loan into good standing. Foreclosure is the process of the lender taking control of your home, selling it, and evicting any occupants within it.

Can I Refinance if I am in Foreclosure?

If the lender has already started foreclosure proceedings, you cannot refinance your mortgage. To refinance your mortgage is to renegotiate the terms of your loan with your lender. You can change the interest rate, the principle, the length of the loan, and more. Regardless of what you change in your mortgage loan, you must still negotiate with the lender, which requires a bit of cooperation on their part. If they have started foreclosure proceedings, they are no longer willing to negotiate and will continue on with the foreclosure instead.

What is Pre-Foreclosure?

Florida is a judicial foreclosure state. That means that in order to foreclose on a home, the lender must file a lawsuit in the court. They must also argue their case and the judge must grant them a foreclosure. In Florida, the pre-foreclosure process begins on the first day you miss a loan payment and ends once the lender files their lawsuit. During the pre-foreclosure stage, you will likely receive notice about a potential foreclosure. It is important to work with the servicer or lender at this stage to learn more about your options and how to prevent the foreclosure from happening.

What is a Loan Modification?

Consumers often confuse the terms ‘loan modification’ and ‘refinancing’ and, sometimes, the two are used interchangeably. While both a loan modification and refinancing your mortgage hold many of the same benefits, they do have some differences. A loan modification will change certain terms of your original loan. Through a modification, you can lower your interest rate, extend the term of the loan, and even have some of your principal forgiven.

A loan modification may or may not affect your credit score, depending on the circumstances surrounding it. If a disaster has impacted your ability to repay the loan, you may find the servicer is more lenient to working out a loan modification for you. The servicer must agree to a loan modification and if you can show financial hardship, it will greatly increase your chances of approval.

To qualify for a loan modification, you should speak with a foreclosure defense lawyer who can help you through the process. The application process varies depending on the reason for requesting the modification. In most cases though, you should be prepared to submit income documentation, your regular expenses, information about your assets, and any information surrounding your financial hardship.

What Is Financial Hardship?

Financial hardship is the inability to repay your loans and other debts when they are due. Some common examples of financial hardship include:

• Increased medical expenses due to illness or injury
• Unemployment
• Long-term or permanent disability
• Divorce

The pandemic has thrown many people into financial hardship, particularly if they or a family member has contracted the virus, or if they have lost their job or had to shutter their business.

What is Refinancing?

Refinancing brings many of the same benefits as a loan modification. However, instead of slightly changing certain terms, you are essentially replacing your existing mortgage with a new loan. This can make it more affordable to pay your mortgage and perhaps even access some of the equity in your home. Qualifying for refinancing largely depends on the equity within your home. You generally do not have to show financial hardship to qualify.

What Is a Short Refinance?

A short refinance works very similarly to a short sale but the difference is that you can stay in your home. During a short refinance, the lender will agree to refinance the home for its current value and will forgive any portion of the balance that is over that amount. A short refinance will still affect your credit since you are not paying off the full balance of the initial loan. However, it will not hurt your credit as much as a foreclosure and you may not have to wait as long to get another mortgage.

Do I Need a Florida Foreclosure Defense Lawyer?

Any time you are having trouble making your mortgage payments, you should speak with a Fort Lauderdale foreclosure defense lawyer. The foreclosure process can happen quickly, and an attorney can advise you of your options and help you stay in your home. If you are facing foreclosure, do not hesitate to contact our experienced attorneys at Loan Lawyers. After reviewing your case free of charge, we will advise on the best solution and help you throughout the entire process. Call us today at (954) 807-1361 or contact us online to schedule a meeting with one of our lawyers today.

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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Does the New Rule on Time-Barred Debt Go Far Enough?

On December 18, the Consumer Financial Protection Bureau (CFPB) issued a new rule regarding time-barred debts. While the new rule is meant to protect consumers, many critics are wondering if it goes far enough. The criticism may be warranted, as the rule essentially reinforces the protection consumers already had. Due to this, it is important that all consumers are aware of the new rule and what it entails. It is just as critical that you understand how to deal with time-barred debts that debt collectors can still try to recover.

The New Rule

The new rule places limitations on debt collectors trying to recover debt from consumers. It states that creditors and debt collectors can no longer sue a consumer over a time-barred debt, or threaten to take legal action. A time-barred debt is one in which the statute of limitations has expired. In Florida, the statute of limitations on most consumer debt is five years from the time the debt was taken out.

The new rule also restricts debt collectors from placing debt on a consumer’s credit report and leaving it there, also known as parking the debt, without first telling the consumer. In addition to notifying consumers about the debt going on their credit report, debt collectors must also notify consumers of their rights before starting collection action.

Debt collectors are also now limited in how many times they can attempt to contact a borrower over a past-due debt. According to the rule, debt collectors and creditors can only contact a borrower once a day in a seven-day period. Debt collectors can use nearly any method to attempt to collect on a debt, as long as they provide borrowers with a method of opting out of that form of contact.

Criticism Over the Debt Collecting New Rule

Critics say the new rule does not go far enough to protect consumers, and they are not wrong. Before the new rule was issued, debt collectors could not threaten legal action if they had no plans of pursuing it. Debt collectors are well aware of the statute of limitations on debt in Florida and know that pursuing a lawsuit once the time limit has expired is a largely fruitless endeavor. Consumers would only have to raise the issue of the expired statute of limitations and the case would be thrown out of court.

The new rule also does not prevent debt collectors from contacting borrowers. It only prohibits them from taking legal action or threatening to take action. That means a debt collector can still call incessantly and perhaps even harass borrowers, which is also against the law. When a borrower has multiple debts, they could face a number of phone calls, emails, and texts per day, as debt collectors are allowed to call once per day for every debt owed.

The critics state that although the new rule was intended to provide protection, it works in favor of businesses rather than consumers. The new rule also does not go into effect until November, which means borrowers will not enjoy the limited protection it provides for nearly one year.

How to Deal with Time-Barred Debts

Even prior to the new rule, the Fair Debt Collection Practices Act (FDCPA) prohibited debt collectors from pursuing lawsuits, or threatening such action, over a debt that was time-barred. The new rule only reinforces that restriction. Unfortunately, these laws are not enough to stop it from happening.

Debt collectors that do abide by the law and do not threaten legal action are also not barred from attempting to collect on the debt. Again, just because a debt collector cannot sue you does not mean that they cannot continue to try and collect the debt. The debt does not go away and while they must abide by certain rules while doing so, collectors can still continue to contact you. When they do, it is important to know your rights.

Always ask if the statute of limitations has expired on any debt a collector tries to recover. They are obligated to tell you when the time limit has run out. You should also ask to see records of the debt, including the date on those records, and the date of your last payment. The clock on the statute of limitations typically starts on the day you made that payment.

Although debt collectors are required to provide this information if you ask for it, that does not always mean they will. When that is the case, send a letter within 30 days of the request to ask them to send verification and that if they cannot, you will dispute the claim. The debt collector not only has to send verification, but they are also prohibited from contacting you until they do.

You should also send a letter to the debt collector asking them, in writing, to stop contacting you in any manner. Once you do this, the debt collector can contact you one more time to notify you of what action, if any, they are going to take. After that, you should not hear from the debt collector again. However, even when you do this and do not intend to repay the debt, there are still consequences. The debt will still remain on your credit report for a period of seven years, which could make it more difficult to obtain credit and other opportunities.

Contact a Fort Lauderdale Debt Defense Lawyer

Although there are steps you can take to deal with debt collectors trying to collect on time-barred debts, the process is not easy. At Loan Lawyers, our Florida debt defense attorneys can advise on what actions to take, speak to debt collectors on your behalf, and will always ensure that your rights are upheld. 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 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.

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Is Your Mortgage Forbearance Plan Coming to an End?

Millions of homeowners across America have received a mortgage forbearance for their home loan.  Although many homeowners have had their forbearance plans expire already, while many are still in a forbearance plan.  During the period of forbearance, a homeowner is not required to make monthly mortgage payments.  The CARES Act passed by Congress at the beginning of the coronavirus pandemic made it easy for homeowners to obtain this temporary forbearance by simply calling their mortgage loan servicer and asking for a forbearance.

Many homeowners wonder what is next after their mortgage forbearance plan ends.  Well, there are several possibilities of what a homeowner can expect after their forbearance plan has ended.  On some loans, the homeowner is expected to make up all missed payments in a lump sum as soon as the forbearance plan has ended.  So, under this resolution, a homeowner who had a six-month forbearance in place is expected to make all 6 missed payments at the end of the six month period.  For other loans, the missed payments are added to the back end of the loan and are due with the last regular monthly payment at the time the loan is paid off.  With other loans, we have where the servicer will give a six or twelve-month payment plan to pay back the missed payments in equal monthly installments.

What is a homeowner to do if they still cannot make their mortgage payments or does not have the ability make up the missed payments in a lump sum or payment plan?  All hope is not lost.  There is a right to receive a review for a mortgage loan modification for most home mortgages.  However, it should be noted that there is no right to be reviewed for a loan modification for a home equity line of credit, or HELOC, although many servicers will still consider a loan modification request.  That being said, even when there is a right to be reviewed for a mortgage loan modification, there is no requirement that a loan servicer or bank actually approve a modification, only that they consider it.

When attempting to modify a loan, timing is everything.  If you apply for a modification at the time you are unemployed, there is almost a zero percent change that you will be approved, and now you have used up your right to be reviewed for a loan modification for at least one year in most circumstances.  At the same time, if you have too much income, that could also be a problem in getting approved for a modification.  At Loan Lawyers, we have helped thousands of Florida homeowners modify their home mortgage loans.  We have the tools and experience to be able to advise you when the right time may be to submit the modification or even whether a loan modification is right for you.

In addition to the loan modification option, many homeowners can consider filing bankruptcy under Chapter 13 of the bankruptcy code. There are several options that may be available to homeowners in a Chapter 13 bankruptcy.  The best route to pursue in the bankruptcy is really dependent on each homeowner’s unique set of facts.  For some homeowners that are back to earning income but just need time to catch up on their missed mortgage payments, they may be able to get a payment plan to back any missed mortgage payments over a period of five years.  For other homeowners, they may actually be able to pay off their whole mortgage in a five year period by taking advantage of a lower interest rate in the bankruptcy proceedings.  For other homeowners, depending on which Florida county you live in, there may be a mortgage modification program through the bankruptcy courts that may work for you.

One of the greatest lessons we have learned by helping thousands of Florida homeowners is that there is no one-size-fits-all solution.  Every borrower has a different circumstance and a plan needs to be crafted for that borrower depending on their unique situation.  At Loan lawyers, our legal services include representation for foreclosure defense, mortgage loan modification, bankruptcy, and we also sue banks, loan servicers, and debt collection for violating a borrower’s rights.  It may be some combination of these services that is necessary to give a homeowner the best chance of saving their home.

When choosing a law firm to assist in saving your home after a forbearance plan has ended, or at any juncture, it is critical to make sure that the law firm you are considering provides ALL of these services so that they are prepared to do whatever needs to be done to put you in the best possible position.  For example, if you choose a law firm that does nothing but foreclosure defense, then how will ever get help getting your loan modified, or get good advice if a bankruptcy is right for you?  The best-case scenario is that you find a law firm that offers all of these services so that everything that may be needed to save your home can be done in-house and you do not need to find different law firms for different services who can then point the finger at each other if things do not go well for you.

At Loan Lawyers, we will give you a free consultation with a qualified, licensed foreclosure relief attorney from our office who will help you create a plan that is best for you, not best for the law firm, and one that is customized for your specific situation.  If your needs or situation changes at some point while we are representing you, we are equipped to quickly change gears and create new plan for you that accounts for your change of circumstances, such as increased or reduced income.

When it comes to saving your home, do not even consider taking a chance with an unproven law firm or one that does not offer all of the legal services that may be necessary to help you.  Call Loan Lawyers right now at 1-888-FIGHT-13 for your absolutely free consultation in the office or over the computer or phone.

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Foreclosure Filings Are Down, but for How Long?

Foreclosure filings are down around the country. That is not all that surprising, as the moratorium on federally-backed mortgages is still in place and approximately 80 percent of homeowners hold this type of mortgage. Still, for those in Florida, the news is grim, as the Sunshine State continues to post some of the highest foreclosure rates. Even with the good news throughout the rest of the country, many people are wondering how long it will last, and what will happen once the federal moratorium expires.

Foreclosures Were Down in November

ATTOM Data Solutions has released its U.S. Foreclosure Market Report for November 2020, and the news looks fairly good around the country. In total, foreclosures were down 14 percent in November from the month before, and the foreclosure rate has dropped by an encouraging 80 percent from one year ago. Around the country, there were only 10,042 foreclosure filings in the entire country in November.

One in every 13,581 housing units had a foreclosure filed on it in November of 2020. Florida had the highest number of foreclosure filings in November, with one for every 7,109 housing units. Illinois followed closely with one in every 7,285 housing units. Oklahoma was found to file one foreclosure for every 8,128 housing units. New Mexico had one foreclosure filing for every 9,236 housing units while Delaware came in as last of the top five with one in every 9,310 foreclosure filings.

Metropolitan areas that have a population greater than one million had the worst foreclosure rates in November 2020. Here in Florida, Jacksonville was one of the worst with one foreclosure filing for every 5,877 housing units.

The case numbers seem to be promising. However, as is seen too often, the numbers may not tell the whole story. With the moratorium still in place for federally-backed mortgages, the latest numbers do not indicate that homeowners are not in trouble with their mortgage. They simply mean that lenders on those loans are unable to file many foreclosures at the moment. So, what will happen when that moratorium expires and lenders can start filing foreclosure cases on all defaulted loans?

Foreclosures Will Increase When the Federal Moratorium Expires

Lenders are quite limited with how many foreclosures they are able to file right now due to the fact that there is still a moratorium on federally-backed mortgages. Once that moratorium expires, things are likely going to become a bit more chaotic. The new filings the courts are expecting once the moratorium expires on January 31, 2021 are expected to create an immense backlog almost instantly. Some experts are expecting the backlog to be as bad as it was during the financial crisis. Individuals that will be most at risk for foreclosure are those that are unemployed or underemployed.

The other problem an increase of foreclosure filing will present is the fact that many of those homeowners will attempt to sell their home for less than what it is worth. That may cause future problems for the housing market, as the number of homes being sold for less than what they are worth will increase, bringing down the value of surrounding homes.

Some professionals have estimated that if the moratorium on federally-backed mortgages does expire on January 31, approximately nine months of foreclosure cases will be filed in the month after the expiration. Clearly, that is going to create a massive backlog and judges will have to determine how they are going to deal with it.

The Backlog Will Not Compare to the Great Recession

The Great Recession of 2008 is still fresh in the minds of Americans and Floridians. Clearly, no one wants to experience that again. Fortunately, it is thought that the Great Recession will actually work to the country’s advantage over a decade later.

When the Great Recession occurred, the banks, courts, and homeowners did not know how to deal with it because they had never been through it before. Now, the process is expected to be much more streamlined because the courts and banks have learned how to deal with the foreclosure deluge.

In addition to streamlining the actual system, the Great Recession also cleared up many legal issues and questions that came up during that time. The Florida Supreme Court issued many opinions about topics that were hotly debated and the law has been clarified. That will also help to streamline the process and has cleared up many of the gray issues the state dealt with during the recession.

Foreclosure Moratorium Protection Is Temporary

The statewide moratorium on foreclosures that expired on October 1, 2020 certainly helped homeowners in Florida. There is also very little doubt that the moratorium on federally-backed mortgages has also helped millions of homeowners. However, regardless of whether the federal moratorium expires on January 31 or not, it is critical that homeowners remember that the protection these moratoriums provide is temporary. They do not relieve a homeowner of their debt obligations, and they must continue to make payments if they want to keep their home.

Some lenders are becoming more willing to work with borrowers that have accumulated debt. Certain lenders are spreading that debt out, which essentially increases the principal for the borrower but helps them in the short-term. Unfortunately, this approach does not work for all homeowners. Spreading out the total cost of the loan will not help borrowers that have missed several months’ worth of mortgage payments. A borrower must also show that they can generate enough income to continue making payments in order for a lender to work with them.

Our Florida Foreclosure Defense Lawyers Can Provide the Help You Need

If you are facing foreclosure, it is important to understand that there are defenses available. At Loan Lawyers, our experienced Fort Lauderdale foreclosure defense attorneys know what those are and how to use them to give you the best chance of keeping your home. 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.

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10 New Year’s Resolutions to Help You Get Out of Debt

New Year’s Eve has come and gone and although 2021 is going to look a little different, there is one thing that is likely going to remain the same. People are going to make New Year’s resolutions and just like every other year, millions of people are probably going to make getting out of debt one of theirs.

Getting out of debt is always important, but it may be even more so in the coming year. Throughout the pandemic, consumers have been relying on their credit cards as they face job loss and economic downfall. With news of a vaccine on the horizon, hopefully, 2021 will be a much better year for the economy and households throughout the country. The following 10 tips to help you get out of debt could help you make it even better.

Obtain a Copy of Your Credit Report

Too many people are terrified to look at their credit report, and that is understandable. No one wants to face their debt head-on and seeing just how much debt you owe in a glance is overwhelming. However, you cannot fix a situation unless you know where you stand. You are allowed one free credit report a year from TransUnion and Equifax, so this is the first step you must take. While they will not show you your credit score, they will outline your credit history so you can gain a general understanding of where you stand.

Fix Errors on Your Credit Report

If you are like most individuals, you may assume that everything on your credit report is correct. It is very common though, for lenders and the credit reporting bureaus to make a mistake that can significantly impact your credit history and your credit score. Go through your credit report carefully and thoroughly. Look for debt that is not yours, or debt that you have already paid. Sometimes, correcting these mistakes is as simple as calling the lender. Other times, analyzing your credit report might reveal larger issues, such as identity theft.

Register with Credit Monitoring Service

It is important to obtain free yearly copies of your credit report. You should register with a credit monitoring service.

Many online services are available that you can register with, and many banks are also offering a free monthly credit score check within their apps. Although you will not be able to view your full report, you will see when your credit score drops, which could provide you with a reason to investigate further and clear up the issue.

Obtain a Credit Product

It may seem counterintuitive to obtain credit while you are trying to get out of debt. However, just because you have credit does not mean that you have to use it, particularly excessively. Obtaining a credit product and using it wisely is a great way to improve your credit score. If you are concerned about getting further into debt, you can choose a secured credit product which will still improve your credit while making sure you do not get in over your head.

Limit How Much You Use Credit

Having credit can greatly help you increase your credit score, but not if you use it too much and fall further into debt. Decide in advance what you will use your credit card for that month, whether it is groceries or gas for your car. Unless you are purchasing those items, leave the credit card at home and try to pay in cash whenever you can.

Stop Spending

This seems obvious, but spending less is crucial when you want to get out of debt. Whether it is your daily cup of coffee or the lunch you purchase several times a week, find areas where you can stop spending and stick to it. Your future financial security is much more important than instant gratification.

Start Saving

When you stop spending, you free up some of your funds. You should take them and place them into a high-interest savings account. Whenever you have extra cash, place it into the savings account and watch it grow. You can use it as an emergency fund, or use it to pay down your debt.

Pay Automatically

It is easy to set up automatic payments for your utilities and other types of debt. When you are late with payments, the late fees and interest start to add up. If you set up automatic payments, you can save this money so you have more money to put towards the actual debt.

Pay As Much As You Can

It is tempting to see the minimum payment and become hopeful that is all you need to pay. Paying only the minimum payment on debt though, does very little to pay down the initial balance. Pay as much as you can realistically so you chip away at the initial loan and the accumulated interest.

Transfer to Low-Interest Credit

Many people have a high-interest credit card and think they are simply stuck with it. That is not true. It may be possible for you to transfer your balance to a low-interest credit product, so you can repay the debt faster and for less than what you are paying now. Compare different credit products and their interest rates and then contact the creditor to determine if you are eligible to transfer your balance.

Our Debt Defense Attorneys in Florida Can Help When Collectors Take Action

Everyone wants to get out of debt, but it is not always easy. If you are suffering from debt and a collector has taken legal action against you, do not hesitate to call our Florida debt defense attorneys today. At Loan Lawyers, we know how to defend against these lawsuits so your assets do not get seized and your rights are always protected. Call us today at (954) 807-1361 or contact us online to schedule a free consultation with one of our knowledgeable 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.

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How to Choose a Foreclosure Defense Lawyer

If you are facing foreclosure, know that all hope is not lost. You have the right to hire an attorney to represent you and help you protect your rights to your property. Whether you are looking for a loan workout, are looking to avoid a deficiency judgment, if you suspect that you were the victim or predatory lending, or for any other reason, it’s crucial to hire a lawyer with the right skills and experience to handle your case.

Hiring an experienced foreclosure attorney can give you peace of mind as you face this challenge. Here, we’ll discuss what to look for in an attorney and how to feel confident in the choice that you ultimately make.

What Kind of Lawyers Handle Foreclosure Defense?

Foreclosure defense is a complex area of law. Foreclosure defense lawyers must understand the property buying process in Florida and problems that may arise during ownership. Florida foreclosure attorneys need an in-depth understanding of consumer issues, the loan modification process, predatory lending schemes, and other problems that can lead to an unjust foreclosure.

Loan Lawyers are dedicated foreclosure defense attorneys—the kind of attorney you need to protect yourself and your family.

Funding a Reliable and Trustworthy Foreclosure Defense Attorney

When choosing a foreclosure attorney, it is important that you select a lawyer you can trust and rely on. Here are some things to consider:

Resources

Your Florida foreclosure attorney should have the resources necessary to handle your case. This includes having knowledgeable foreclosure defense attorneys and support staff. These individuals should have a robust understanding of predatory lending and state and federal consumer laws that the bank or financial institution may have violated.

A foreclosure defense lawyer may be able to help you avoid foreclosure by using one or more methods such as:

• Loan modification – You may be able to modify your loan so that you add missed payments to the end of your loan term or reduce your monthly payment to make it more manageable.
• Reinstatement – If you are able to refinance the property or come up with the funds to make your mortgage current, reinstatement maybe a viable option for you.
• Negotiation – An experienced Florida foreclosure attorney can attempt to resolve your case through negotiation to keep the case out of court.
• Litigation – If the bank has committed violations that impact your rights or you have other viable legal defenses, a foreclosure defense lawyer may suggest litigating the case.

What to Look For

Consider the following when choosing a foreclosure attorney:

• Experience – When considering which foreclosure defense attorney to hire, ask about their experience in consumer issues at large, as well as about foreclosure defense in particular.
• Past results – Check if the lawyer has a history of previous success in handling other foreclosure defense cases.
• Knowledge – A strong foreclosure defense requires that your legal advocate understands real property and consumer laws. This knowledge can help your lawyer devise a customized plan for your case.
• Reputation – You can investigate a lawyer’s reputation by checking with local bar associations and by reading reviews online.
• Stated plan – After meeting with a foreclosure defense lawyer, you should have a good understanding of how the lawyer plans to help you. This may mean seeking a loan modification, refinancing your property, pursuing a rescission of the loan due to predatory lending, signing a deed in lieu of foreclosure, filing for bankruptcy, or pursuing other legal remedies against the bank.

Your Florida foreclosure attorney should be willing to answer any questions you have about the process and their background.

Watch Out for Warning Signs

Also, watch out for the following warning signs when choosing a foreclosure attorney:

• Guaranteed results – No ethical Florida foreclosure attorney will guarantee a specific outcome. While the lawyer may have confidence in their skills, they cannot predict how a court might rule in a particular case. An ethical lawyer should inform you of all potential outcomes, good and bad.
• Not putting your interests first – Be alarmed if a lawyer is willing to take your money when you are unable to afford to support your home. This may indicate that the lawyer is more concerned about their fee than about your financial security.
• Bad reviews – Home rescue scams are one of the most common consumer scams. Predators may target homeowners in distress because they know how important a person’s home is to them. Check any reviews about a foreclosure defense firm you are considering hiring to see if the firm has defrauded other people.
• A one-size fits all approach – Foreclosure defense relies on your legal advocate’s ability to understand your unique situation and apply customized solutions. Avoid a foreclosure defense mill that tries the same tactics over and over regardless of their clients’ individual circumstances.

Why You Can Trust Loan Lawyers

Loan Lawyers was established in 2009 when two attorneys left lucrative careers in personal injury law to provide much needed legal assistance to Florida residents adversely affected by the housing crisis.

Since that time, this foreclosure defense, debt defense, and bankruptcy law firm has helped more than 5,000 families and saved over 2,000 homes in South Florida. This includes eliminating more than $100 million in mortgage principal and consumer debt.

Time and time again, we have been able to find creative solutions that have eliminated some of our clients’ mortgage debt, modified their loans, or made claims against banks guilty of predatory practices to help our clients keep their homes.

Today, Loan Lawyers consists of nine highly experienced consumer rights attorneys and more than 30 staff members whose sole focus is to help homeowners and consumers with debt issues. Our vigorous legal defense has garnered the appreciation of our clients, as well as the respect of our adversaries and the legal community.

Our firm has been recognized with local, state, and national awards for our zealous legal advocacy and results. We put our clients and their needs first, which has resulted in a proven track record of success.

Contact Us Now to Find Out How We Can Help

At Loan Lawyers, our compassionate foreclosure defense, debt defense, and bankruptcy lawyers are here to help. We are ready to thoroughly evaluate the circumstances surrounding your case and determine all legal options available to you.

Call us or contact us online for a free and confidential review of your situation and legal options.

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