Have You Been the Victim of Identity Theft?

As the number of data breaches into corporate networks increases, so does the crime of identity theft.  The Federal Trade Commission reports that they received 4.8million identity theft complaints in 2020.  That only represents the number reported, the true number is likely much higher than that.  Once your identity has been stolen, you can expect various credit accounts opened in your name.

We have even seen criminals finance cars using a stolen identity.  If you have been the victim of identity theft, the time to act is now.  The longer you wait, the more damage will occur.  The Fair Credit Reporting Act requires the credit bureaus to essentially freeze your credit report once you have reported an identity theft.  One of the first steps is to go file a police report.  The next step is to call an identity theft attorney who can guide you through the process of restoring your credit.

Once these criminals open credit accounts in your name, do you think they are going to pay the debts off?  The answer is obviously no.  The repercussions of that are that you will eventually be sued for not paying these debts and your credit will be destroyed.

The key is to be proactive and nip these problems in the bud before they balloon to something much greater.  If you have been the victim of identity theft, we may be able to help you restore your credit and return to the peace of mind.  We will assist you in obtaining a copy of your credit report and disputing any inquiries and accounts that were established by the criminals.

Should the credit bureaus and the furnishers of the fake accounts not remove them 30 days after the dispute process has been initiated, you may be able to sue the credit bureaus and the furnishers under the Fair Credit Reporting Act.

So, you may be thinking that you will just go online to each credit bureaus website and buy your report and start the dispute process.  This is a terrible idea!  You need to look at the fine print.  If you buy the report from Equifax, Experian, or Transunion, you may be agreeing that you will not sue them in court for any violations.

There always the “click here to accept the terms and conditions” box when you buy something.  Do you ever read the terms of conditions? No one does, but you are entering into a legally binding contract if you check that box.  That contract will likely contain a waiver of your right to sue them in court.  Do not agree to anything with the credit bureaus without first obtaining competent legal advice.

You will be best served by speaking with an identity theft lawyer who knows how to properly guide you through the process to make sure that you preserve your rights.  If you have been the victim of identity theft and are not sure what to do, there is no need to go at it alone.

Call  Loan Lawyers today for your free consultation with an identity theft attorney who can advise of you of your rights and help you through this process.  Call us now at 1-888-FIGHT-13 for a free consultation with an identity theft attorney, you will be glad you did.

 

People Also Ask:

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As Credit Card Debt Increases in Fort Lauderdale, it is Important to Know Defenses to Lawsuits

Even as difficult as 2020 was for millions of people in the country, according to WalletHub, people paid down $82.1 billion in debt during the year. Unfortunately, the news has different meanings for people in different parts of the country. Here in Fort Lauderdale, for example, the average household is still carrying approximately $14,400 in debt. That is not only the highest in the Sunshine State, but it is also nearly twice as much as the national average, which stands at $7,519 per household across the country.

Much of the credit card debt people in Fort Lauderdale are carrying no longer belongs to a credit card company. Instead, it belongs to debt collectors that have purchased the debt from the original creditor for pennies on the dollar. Still, when the debt goes unpaid, these debt collectors have just as much right to file a lawsuit against borrowers. If you are being sued by Portfolio Recovery Associates, Midland Funding, Cavalry Portfolio Services, LVNV Funding, or any other debt collector, below are some defenses that may assist you with your case.

A Lack of Standing

One of the most common answers in a debt recovery lawsuit is that the plaintiff lacks standing to file the lawsuit. A lack of standing simply means that the debt collector does not own the debt. Many borrowers automatically assume that if a debt collector is suing them, they do have the standing to do so. This is not always the case. The debt collector must also prove that they have standing.

When a debt collector purchases a debt, or a bundle of debts from a creditor, the only documentation they receive is a ‘Bill of Sale,’ or ‘Assignment,’ and these are generally photocopies and not the original. These documents also do not always reference your account individually, which may prevent the debt collector from proving that they own your debt.

A Lack of Evidence

Along with standing, debt collectors must prove a number of other elements related to their case. These companies will often present documentation to the court in an attempt to prove their case, but the court may find it inadmissible. For example, a witness is often required to establish the reliability and authenticity of the credit card statements. It is not uncommon for the witness for the debt collection company to not have personal knowledge about the record-keeping practices of the original creditor and so, their testimony could be deemed inadmissible by the court. Without adequate testimony, the debt collector will likely have a hard time proving its case.

Failure to Satisfy a Condition Precedent

Under Florida law, debt collectors must notify the borrower that they purchased their account prior to filing a lawsuit against the borrower. This is known as a condition precedent and the debt collector must prove this aspect of their case if it is brought up at trial. Under the law, debt collectors must notify borrowers as soon as it is practical after they have purchased the debt.

Before the debt collector can take any legal action, they must notify the borrower at least 30 days prior to attempting to collect on the debt through legal action. If the debt collector cannot prove this element of their case, it will likely be dismissed.

Counterclaims

The Fair Debt Collection Practices Act (FDCPA) outlines many rules and laws debt collectors must follow. These include prohibiting threats of violence, harassing borrowers with numerous calls for collection attempts, and other unfair or devious collection practices. When debt collectors violate these laws, borrowers can file a counterclaim against them to sue for damages. A counterclaim will not only help borrowers recover compensation for losses they sustained, but can also serve as a defense in a debt lawsuit.

Other Defenses in Debt Collection Lawsuits

The FDCPA only applies to third party debt collectors, and it is typically not difficult for credit card companies and original creditors to prove that they have standing. However, there are still defenses that can be used in a lawsuit filed by a creditor directly, or a debt collection company. The most common of these defenses are as follows:

• Consent orders: Consent orders in debt collection lawsuits are the agreements between the creditor or debt collector and government agencies, such as the Federal Deposit Insurance Company or the Consumer Financial Protection Bureau. The government agencies creditors have an agreement with expose violations of different consumer protection laws. For example, American Express agreed to stop collection efforts immediately until they could show, at the bare minimum, the consumer agreements.
• Inconsistent statements: In a credit card lawsuit, the statements are the main forms of evidence. A debt defense lawyer can review the statements from the credit card company and detect inconsistent interest rates and the fees charged as a penalty for late payments and more. When a creditor was inconsistent, it can provide a defense in a debt collection lawsuit.
• Amendments to the contract: When a borrower takes out a credit card, they sign an agreement between them and the creditor. After the original account was opened, however, amendments are sometimes made to it, which may change the interest rate, over limit fees, and fees for late payments. Like when the credit card statements are inconsistent, any time a creditor fails to adhere to the amendments of a certain contract, it can serve as a defense in a lawsuit.
• Payment plans: Working out a payment plan with a creditor is actually the best way to avoid a lawsuit, rather than defend against one. Many creditors do not want to take on the hassle of a lawsuit and so, they are often happy to work out a payment plan.

Our Debt Defense Lawyers in Fort Lauderdale Can Help with Your Case

If a creditor or debt collector has taken legal action against you, our South Florida debt defense attorneys at Loan Lawyers can advise on your case. Call us today at 954-807-1361 or contact us online to schedule a free consultation.

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Time to Take Action as the End of Mortgage Moratoriums Looms on the Horizon

After a really hard economic period for all of us, it seems that life is moving forward as the pandemic turns into a past memory. Business are opening up, people are going out and spirits are high. Nevertheless, the financial effect of this pandemic is just starting. Millions lost their jobs.

Some will never recuperate them and other are returning to work with massive debt. Thousands have incurred in medical debt related to the Covid-19. Others, have lost their ability to pay their rents and mortgages and are facing eviction or foreclosure.

But, wasn’t there a moratorium on foreclosures? Yes and no. There many misunderstandings regarding the government measures to protect homeowners. The forbearance and foreclosure deadlines established by the federal government apply only to loans backed by a federal agency, Fannie Mae, or Freddie Mac.

If you have a private mortgage, then these moratoriums won’t apply to you.  Yes, you could call your lender directly and try to negotiate your own forbearance. That will help you get more time to get your finances in order and while not ruining your credit. However, how long can this solution last? The same applies to people who are benefiting from these moratoriums. What’s going to happen once the moratoriums are over? What people need are permanent solutions or options that deal with the issues head on.

So what road can you take if you are facing foreclosure or are behind in your mortgage payments? If you are already in a foreclosure proceeding, please contact a foreclosure attorney immediately. There are very important deadlines that can’t be missed and delaying an answer could cost you your house. An attorney can help you decide if there is an argument in your favor that could win this case, if the case can be defended to win you some time or if bankruptcy is the right choice for you.

If you have still not been sued, then you have time to strategize. Maybe you want benefit from this high selling real estate market and sell your property. Maybe you just need some time to move out. Perhaps things are picking up and now you’re able to catch up on the payments.

Bankruptcy would be a great choice in this case. And maybe, you need to free up some money to continue making payments on your own. By examining your unsecure debt, such as credit cards and medical bills, a good bankruptcy attorney can tell you which ones can be eliminated or negotiated.

If any of these scenarios looks like your situation, do not hesitate to send us a message or give us a call to discuss more in depth the options you have to deal with your creditors. Not only will we explore if bankruptcy is for you, but we also other departments which may be a better fit depending on your problem.

Our teams work together to find the right fit for you. 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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Reasons a Foreclosure May Be Delayed in Fort Lauderdale

A house littered with outdoor debris and boarded-up windows stands vacant in Eau Gallie, and it has for over ten years. The bank foreclosed on it in 2007 but has had a previous owner since that time. That owner died in 2020 and now, a number of circumstances have held up the foreclosure. Until the foreclosure goes through and something is done with the property, it will remain what it is today, a place for crimes to take place. In 2018, a woman died from an overdose inside the home and last year, a man was beaten and killed.

Stories like this are shocking for everyone, particularly the homeowners that own real estate near such zombie homes. Unfortunately, it happens all too commonly. In the above story, the foreclosure was stalled due to the case being held up in probate court, and because it was part of a bankruptcy case. The bank tried to foreclose on the home once again but it was tied up in early 2020 because of the COVID-19 pandemic. While some of these reasons are extraordinary and do not apply to everyone, there are other reasons a foreclosure case may be delayed in Fort Lauderdale. They are outlined below.

Stays and Continuances

Many people use the terms ‘stay’ and ‘continuance’ as the same legal term, but the two are quite different. A stay is an order issued by a judge that puts a foreclosure case on hold. A stay can be temporary or permanent. After a judge orders a stay, nothing will happen with the foreclosure case, including scheduling a hearing or trial date. The only way the case can proceed is for the judge to lift the stay. A bankruptcy stay, for example, places a foreclosure on hold until the bankruptcy case is closed.

A continuance, on the other hand, is when a judge issues an order that delays the hearing or trial date in a specific foreclosure case. A continuance can happen before, during, or even after a hearing or trial has begun. Either party in a foreclosure lawsuit can request a continuance. For example, the lender may want to postpone the trial because they need to locate witnesses or find documents. Or, a borrower may want to postpone the trial date to give them more time for discovery.

The Backlog of the Courts

In the most recent story, one of the reasons the foreclosure has been delayed for so long is because when the lender was ready to foreclose again, the COVID-19 pandemic prevented it from happening. At the beginning of the pandemic in March and April of 2020, courthouses were shuttered for months. That not only delayed foreclosures that were happening at the time, but it will also affect the length of time a foreclosure in Fort Lauderdale takes now.

As the pandemic continued and more Florida courts started to reopen, the backlog was a very serious issue. At the time, there was a 990,000 case backlog of foreclosure cases alone, and the court system was asking lawmakers for $16 million due to the increased workload to clear the backlog. When making their request, the court system stated it expected to be dealing with the fallout from the pandemic for the next three years. That does not mean that a single foreclosure case will take three years. It does mean, however, that the backlog of the courts will affect homeowners facing foreclosure in some manner.

While the courts slowly start to get through the current backlog of cases due to COVID-19, it is important to remember that courts are backlogged often, even when there is not a pandemic going on. The court system in Florida is often overburdened and any time there is a backlog of cases, it will affect your case.

A Bankruptcy Case

If you are facing foreclosure and file for bankruptcy, it will delay your case. How long it delays your case will depend on the type of bankruptcy you file. You will temporarily stall your foreclosure case if you file for Chapter 7 bankruptcy. If you are current on the loan and do not have a lot of equity in the home, you may be able to save your home, even when filing Chapter 7. If the loan is in default or you cannot otherwise modify the loan, you will likely lose your home during a Chapter 7 bankruptcy. Still, that can take several months and can provide a necessary delay to save the home.

Homeowners that want to file for bankruptcy and still keep their home should file Chapter 13 bankruptcy. During a Chapter 13 bankruptcy your debts are restructured, and that could include your mortgage debt. A mortgage arrearage will allow you to pay the defaulted payments over a period of several years, usually three to five. You can also try to modify your loan during this bankruptcy process.

Other Factors that Could Delay Foreclosure in Fort Lauderdale

In addition to bankruptcy and the backlog of the courts, there are other factors that could delay a foreclosure in Fort Lauderdale. These include:

• Lost documents: Lenders must have certain documents to prove that they have standing to foreclose and if they do not, that can delay a foreclosure case.
• Loss mitigation: Loss mitigation occurs when the lender and the borrower come to an agreement to bring the loan back into good standing.
• Hardship: In certain circumstances, you may be able to write a letter or otherwise explain your hardship to delay or avoid foreclosure.

Our Foreclosure Defense Lawyer in Fort Lauderdale Can Help with Your Case

If you are facing foreclosure and want to learn more about how to possibly delay or avoid foreclosure, our Fort Lauderdale foreclosure defense attorneys at Loan Lawyers can help with your case. We know the defenses available in foreclosure cases, and will advise on what is best for your case. Call us today at 954-807-1361 or fill out our online form to schedule a free consultation.

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How to Graduate from College Debt-Free

Student loan debt in the United States is over $1.71 trillion, with more than 44.7 million Americans carrying this type of debt. The number of people taking on student loan debt is growing higher every day. According to the Bureau of Labor Statistics, the number of people taking out student loans increased by seven percent in 2003 to 15 percent in 2012. Given these numbers, and the fact that the average student will graduate with approximately $30,000 in student debt, graduating college-free debt-free seems impossible.

It is not. It is possible to graduate from college without carrying an immense amount of debt, and 30 percent of students do it every year. Below are some tips you can follow if you want to graduate from college with the education you need, and not the debt you do not.

In-State Tuition

Tuition for in-state schools is drastically lower than the majority of private schools and other schools that are out of state. The average college tuition for students attending college in-state is approximately $10,000 less than students that attended school out-of-state.

Community College Transfer to Four Year Programs

A very strategic way to graduate from college debt-free is to earn an associate degree at a two-year community college and then transfer to a four-year program in a different school. Community colleges are typically far less expensive than other institutions and attending one for two years will allow you to complete nearly all of your degree prerequisites without paying so much in tuition to do it. It is also important to note that only 17 percent of community college students rely on federal student loans, compared to 48 percent of their counterparts at four-year public institutions.

Attending College Online

Online college was becoming more popular even before the pandemic made it necessary for millions of college students across the country. The benefit of online college is that it is generally much cheaper than attending a brick-and-mortar college. When colleges offer distance learning programs, they often do so at a significantly discounted price than regular tuition. Students that attend a physical school end up paying approximately $85,000 for their college degrees, while graduates of online schooling options typically only pay approximately $30,000 for theirs.

It is also important to note that students that can attend online college while still living at home will save even more money, which can help them avoid going into debt. While living on campus, students must pay for all of their needs, including food, laundry, and more. Simply living at home and attending online college can save a student tens of thousands every year they are in school.

No-Loan Colleges

No-loan colleges give students certain opportunities when they meet certain financial aid requirements, such as eligibility for the Federal Pell Grant. When a college offers these programs, students are still allowed to take out loans, but they typically have a much lower rate than other types of student loans. Certain schools require students to contribute to their tuition by obtaining student employment on a part-time basis. Regardless of the arrangement, no-loan college programs can provide reasonable funding that can help students avoid going into debt.

Steps to Take Before College to Graduate Debt-Free

Although it is difficult for students to imagine how they will get through a school year without going into debt, there are steps that can be taken even before you enroll in college. These include:

• Become employed: Working during the summer to earn money that will help you in the fall when you go to college is one of the best ways to graduate from college debt-free. You may not think you can earn enough to fully cover your tuition and that may be the case. Still, every little bit helps when you are in college and if you have savings you can use to offset daily expenses, it will help you avoid going into debt.
• Save money: Yes, you will work so you can save money for school, but there are more official ways that will help you save money, and even save money in a smarter way. In Florida, students can take advantage of 529 plans that provide financial savings opportunities for students that want to set aside tuition money.
• Prior learning assessments: Prior learning assessments give students the opportunity to gain college credits while they are still in high school. This means less time spent in college gaining those credits, while spending even more, and less debt upon graduation.

Steps to Take During College to Graduate Debt-Free

Of course, preparing for college by saving is a great way to make sure you graduate from college debt-free. However, there are steps you can take while at school, too. These include:

• Become a Residence Advisor: Residence Advisors (RA) are students in residence that oversee their dorm and that foster a fun and welcoming environment. The job has perks too. These sometimes even include earning a part-time income, although housing is most often free and RAs are typically given a meal plan, as well, which greatly helps to offset the cost of college.
• Rent textbooks: Textbooks are expensive and there is a good chance you will not look at them again once you graduate. Consider renting your textbooks, or purchasing used books, that can help you save even more money, helping you to graduate from college debt-free.

When You Cannot Avoid It, Our Debt Defense Lawyers in Florida are Here to Help

The above tips are all very helpful when trying to avoid going into debt for college, but they are not always enough. If you are carrying a significant amount of student debt and you have been threatened with legal action, our Florida debt defense attorneys at Loan Lawyers can advise on your case. 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

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The Importance of a Bankruptcy Certificate in Your Case

Bankruptcy is a much more complex process than simply filing and having your debts discharged or restructured. You will have to first complete many steps and one of those is obtaining a bankruptcy certificate or rather, two certificates. Bankruptcy certificates are documents that show you completed a credit counseling and a debt education course. These courses are separate from each other, and you will have to complete them at different times during the process.

You must have a bankruptcy certificate from a credit counseling course to file for bankruptcy, while you have to obtain a certificate from a debt education course after you have filed. Both courses are mandatory if you are pursuing bankruptcy protection. It is important to know about the companies that have the authority to issue bankruptcy certificates, so you can know what to expect before starting the bankruptcy process.

The Law on Bankruptcy Certificates

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 outlines the requirements of obtaining a bankruptcy certificate. As the name of the Act suggests, the requirements on bankruptcy certificates are intended to help ensure people are only filing bankruptcy when they really need to, and not to abuse the system. Adding the extra step of requiring bankruptcy certificates makes it a bit harder for people, ensuring only people in legitimate need of relief are filing. The bankruptcy certificates apply whether you are filing Chapter 7 bankruptcy or Chapter 13.

Which Agencies Can Issue Bankruptcy Certificates?

It is important to only take a credit counseling course or a debtor education course from a company approved by the U.S. Trustee Program. These are the only companies authorized to issue bankruptcy certificates. If you are filing a joint bankruptcy with another person, you can attend the courses together, but you must each receive your own services. These courses are often individualized to help borrowers with their own situations and so, each party must receive this individual counseling. After you have each completed the course, you are then both given your own bankruptcy certificate to prove completion.

What Happens During Credit Counseling?

Credit counseling is meant to help you understand whether you do actually need to file for bankruptcy, or whether you can get back on your feet financially through an informal repayment plan. Even if a repayment plan is not practical, such as if you have too much debt and not enough income, you must still attend credit counseling.

During counseling, a representative from the company will prepare a budget based on your income and expenses. They will then determine the options you have to repay the debt. In the majority of cases, the company will confirm that you cannot repay the debt and so, you should file for bankruptcy.

Under the law, you are only required to complete the counseling. You are not under any obligation to go through with the options the company provides you with. So, even if you can repay the debt, you can still choose to file bankruptcy instead. However, you must include any plan the company created with the other documents when you file bankruptcy. If the court finds that you could also repay the debt, they may require that you file Chapter 13 bankruptcy instead of Chapter 7.

Credit counseling sessions usually last between 60 to 90 minutes. You can complete the course in person, over the phone, or even online. The fee for credit counseling is usually approximately $50.  You must complete the credit counseling session within the 180-day period prior to filing for bankruptcy.

What Happens During a Debtor Education Course?

The debtor education course is not intended to determine if you can file for bankruptcy, which is why you will have to complete it after filing. Instead, this course is intended to help you manage your money and debts better once you have filed and after your case is final. During the debtor education course, you are given financial management tools, including how to rebuild your credit after bankruptcy and how to create a budget.

Like the credit counseling sessions, once you have completed the debtor education course, you will receive a bankruptcy certificate. You must file the certificate within 60 days of your first date of meeting with the creditors or the court will dismiss your case. The company that offers the course may file your certificate for you, so it is important to ask any agency what their process is so you can ensure your certificate is filed properly and in the appropriate amount of time.

Debtor education courses take a little longer than credit counseling sessions and they can last up to two hours. However, you can still complete the course in person, online, or over the phone. The cost for these courses is usually $50 to $100.

Fees for Bankruptcy Certificates

Bankruptcy law recognizes that anyone seeking a discharge or reorganization of their debts is struggling financially. As such, any company offering a credit counseling course or a debtor education course must disclose all of their fees upfront. While these companies are allowed to charge a fee for the bankruptcy certificate, they must inform you of this fee before the service.

It is possible sometimes to have the fees associated with these courses waived. You will typically only qualify for a waiver if your household income is less than 150 percent of the poverty level. If you qualify and are unable to pay, the companies are required to provide the service free of charge.

Our Bankruptcy Lawyers in Fort Lauderdale Can Help with Your Case

When filing for bankruptcy, there is a lot to know and you will have to take certain steps that many people are not aware of. At Loan Lawyers, our Fort Lauderdale bankruptcy attorneys can advise you of what to expect, and help you through the entire process to give you the best chance of a successful outcome. Call us today at 954-807-1361 or fill out our online form to schedule a free consultation.

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How to Reach a Settlement Agreement with a Creditor in South Florida

When people fall into financial difficulty, sometimes, working with a debt settlement company seems like a good idea. These companies negotiate with your creditors on your behalf and come to an agreement about the amount of debt you will repay.

A settlement is typically less than the original amount of the debt and sometimes, the difference is considerable. Debt settlement companies may seem like the only answer, but they are not. In fact, armed with just a few tips and tricks, you can negotiate a settlement on your own without the fee those companies will charge you.

Why Are Credit Card Companies Willing to Negotiate?

While some people think they have to use a debt settlement company to negotiate with creditors, others simply think there is no point at all. Fortunately, your credit card company may be just as willing to negotiate as you are. Credit card companies have many different priorities, but the first is always to make as much profit as possible.

The priority of the banks and credit card companies remains making money even when it becomes clear that a person will not be able to repay all of their debt. They know there is a chance they may still be able to recover at least a portion of the debt and so, they become willing to negotiate with you for a smaller amount.

The banks and creditors also know that if you cannot repay the debt you owe them, there is a chance you may file for bankruptcy. If that is the case, they stand to lose everything and recover nothing. While creditors will still try to recover as much as possible from you, they will remain willing to negotiate with you in many situations.

Know the Different Types of Agreements

As a consumer, you have many options when coming to a settlement agreement. Creditors will typically use one of three arrangements when agreeing to a settlement and they are as follows:

• Lump-sum agreement: This option is usually best if you know that you will soon receive an inheritance, a work bonus, or another additional source of income and want to use it to repay your debt. You can offer to make a one-time payment to the creditor and they will forgive the remaining amount.
• Workout agreements: If the credit card company is willing to enter into a workout agreement, they may lower your interest rate, reduce the amount of the minimum payment due monthly, or waive late fees. A workout agreement will reduce the total amount of debt you owe, allowing you to pay it off completely in a shorter amount of time.
• Hardship agreement: If you have just lost your job, experienced a natural disaster, or became sick, you may qualify for a hardship agreement. A hardship agreement may also reduce your monthly minimum payment, fees, and interest rate. In some cases, the creditor may also allow you to suspend payments for a certain period of time and not incur any penalties for doing so. Not all credit card companies offer this, but it is good to know that some do.

Starting Negotiations

Once you understand the options that may be available to you, it is time to contact the credit card company and try to negotiate an agreement. Before picking up the phone, make sure you understand the exact amount you owe, the interest rate you are paying, and any other important details about the debt.

When speaking to the credit card company, inform them that you cannot repay the entire amount of the debt and that you would like to work out a settlement agreement. Emphasize the fact that you would rather give the credit card company something rather than nothing. Additionally, if you are thinking about filing for bankruptcy, tell the credit card company so and explain that you would rather negotiate a settlement instead.

Do not become discouraged if the first person you talk to is not able or not willing to negotiate a settlement agreement. It can take speaking to several different people over a period of days before you reach someone who can negotiate with you. The negotiations after that point will also take some time, so it is important to remain persistent even after the creditor has turned down your first one or two offers.

As you speak to different people at the credit card company, make sure you document who you spoke to, and everything that was said during the conversation. If you are able to reach an agreement with the creditor, always make sure the terms of the deals are in writing. A formal document will help you avoid any disputes about the debt in the future.

Know the Potential Drawbacks

Successfully negotiating a settlement agreement with a creditor can help if you cannot repay the entire debt. However, it also comes with some potential drawbacks and it is important to know what those are.

Depending on how negotiations go, a debt settlement agreement can cause your credit score to drop quite significantly. A company may have already closed your account before you came to an agreement with them, or they may have taken other measures to prevent you from using more credit. This will make you seem like a bigger risk to other creditors, as well. If you are able to find a new source of credit, you will likely have to pay a much higher interest rate to use it.

If the credit card debt forgiven is over $600, it will be treated as taxable income. The creditor will notify the IRS of the total amount forgiven and will give you a Form 1099-C, which you must file along with your taxes. If you do not, you will face serious consequences.

Call a Debt Defense Lawyer in South Florida

Negotiating with a creditor on your own is possible, but you can give yourself a better chance of success if you work with a South Florida debt defense lawyer. At Loan Lawyers, we have the necessary experience to negotiate with creditors and will help you obtain the settlement agreement you need or defend you against legal action. Call us today at 954-807-1361 or fill out our online form to schedule a free consultation.

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Do I Need to Hire a Lawyer to Help me With a Loan Modification?

Loan modification can be a tricky business.  Many struggling homeowners believe that their loan servicer does not want to take their house, so a loan modification is a sure thing.  Unfortunately, that is not the case.  For starts, loan servicers exist to make a profit, not to help homeowners.  Pursuant to Regulation X at 12 CFR 1024.41 every homeowner has a right to be reviewed for a loan modification.  However, the right is only to be reviewed for a modification, not to be approved for a modification.  Pursuant to Regulation X, the loan servicer must give you an answer on the modification within 30 days of receiving a complete loan modification package.  However, the law allows servicers themselves to determine what a complete package looks like.

Every loan servicer has their own way of reviewing loan modification packages.  Further, every loan owner and servicer has unique guidelines on who will qualify for a modification and under what circumstances. There are so many pitfalls when it comes to modification.  Just trying to get a complete package in can be tricky.  Although service is supposed to tell you within 5 days of receiving a package what, if anything,  is missing, it’s not uncommon for them to wait weeks before advising you of what is missing.  Then, by the time you supply that missing documents, all of the documents you submitted previously are stale and they will then send another letter telling you that you must provide all new documents.  This can start a vicious cycle that could last for months.

Another big issue is the amount of income a homeowner has.  If a homeowner has too little income to support a modification payment, it will be denied.  On the flip side, if a homeowner has too much income, that is also grounds to deny a modification. This is especially tricky for people who are self-employed or work on commissions.  Knowing when to submit a loan modification request and how to submit a loan modification request simply comes with experience.  So, while you may be able to obtain a loan modification on your own, having a law firm with a proven track record of success to handle the modification request for you will usually greatly increase your odds of being approved.  You may be thinking that maybe it’s best to handle it on your own and then go to a lawyer if its denied.   That’s also not a great idea.  Once you had a loan modification denied, it may be more difficult to go back and get a proper second review.

Further, what if the loan servicer does not give you an answer within 30 days?  Well, you have a right to sue them for violating Regulation X, however, that needs to be set up properly.   At Loan lawyers, when we represent someone for a modification, we use all of our experience and best judgment to submit the modification in such a way to maximize our clients’ chance of success.  Further, if the loan servicer does not provide a timely answer, we will often sue them in federal court.  This may result in them settling the federal case in such a way that includes loan modification.

If someone is sick, they will go to a doctor because that doctor has the training and experience to deal with whatever malady they are facing.  Falling behind on a mortgage is a legal problem that also needs a professional with the training and experience to handle that matter for you.  We have seen time and again clients who have tried to resolve everything themselves with the expectation that their loan servicer is going to really help them out, just to be disappointed and facing a foreclosure sale and a much more difficult situation.

If you find yourself behind on your mortgage and are thinking about a loan modification, call Loan Lawyers now for your free consultation with an experienced attorney to go over your options.  Getting the right legal help early will likely increase your chances of saving your home before things snowball out of control, which can happen fast for homeowners behind on their mortgage.  Call Loan Lawyers now for your free consultation with an experienced foreclosure and loan modification attorney at 1-888-FIGHT-13.

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How to Challenge Unexpected Fees in Foreclosure in South Florida

The story of a pending foreclosure in Miami Gardens emerged recently that shone a light on not only foreclosures in Florida, but also the unexpected fees that often come along with it. The Miami Gardens home was passed down from a mother to her daughter, who later died without a will or estate plan in place. The family tended to the home from time to time, but did not have the legal authority to pay the mortgage or stop a foreclosure from happening.

The bank took over the home with just over $8,000 owed on the mortgage. One year later, the homeowner’s sister obtained the legal authority to take control of the home. She paid off the mortgage and the fees that had accrued over the year. It ultimately cost over $40,000 to save the home from foreclosure. The family, like so many others in South Florida, was shocked to learn what it would cost them to keep the home.

Fortunately, while the story had a happy ending even with the additional cost, the fees lenders charge people to keep their homes only add to the financial difficulties of homeowners. For many, they are too much and they lose the home anyway. However, there are ways you can challenge fees and ensure this does not happen to you.

Late Fee Assessments

If you default on your mortgage, the servicer will likely apply a late fee to your account. Servicers, though, do not always charge these fees correctly and that can add hundreds of dollars to the amount a person owes. The most common mistakes made with late fee assessments are as follows:

• Late fees are assessed during a grace period
• Servicers do not post payments to the borrower’s account promptly
• The amount of the late fee assessment is incorrect

In other instances, a servicer may ‘pyramid’ late fees illegally. In these cases, a servicer will charge the borrower a late fee even though a full payment was made. However, if a borrower did not include a payment for a late charge they did not previously pay, the servicer deducts the prior late fee to the current full payment. This leaves a certain portion of the current amount owed overdue, and more late fee assessments are applied to the account.

Servicers are also not allowed to apply late charges to post-accelerated cases. If a loan is accelerated, it means you must pay the entire loan’s balance, and not just the amounts that are already overdue. This is often the beginning of the foreclosure process in South Florida, but borrowers cannot accrue late fees during this time. Unfortunately, they still often face these fees.

Fees Related to Default in South Florida

If you do not make mortgage payments on time, a servicer may also apply default-related fees to your account. These fees often include:

• Fees for property inspection: Servicers are usually allowed to take certain steps to protect the rights of the lender, which includes inspecting the property to determine if it is occupied, as well as the physical condition of the premises. Once the mortgage loan falls into default, an inspection is often automatically ordered and the cost of the inspection is added to the mortgage loan.
• Fees for preserving the property: To protect the lender’s rights, servicers are also often allowed to conduct maintenance on the property to preserve it. This may include replacing locks, repairing or replacing windows, restoring utilities, or landscaping the property. Most courts in South Florida have rules that these fees are collectible from the borrower, but that they must also be reasonable.
• Fees associated with foreclosure: Lenders do not generally want to foreclose on a property because it costs them a lot of money to do so. Still, lenders can also pass those fees onto the borrower in the event that they are trying to foreclosure. These fees can include advertisements at auction, the cost of the sheriff’s duties in serving the papers, filing fees, and any certified mailings they sent in regards to the foreclosure. In some cases, borrowers may even have to pay the lender’s attorney’s fees.

While the amount of fees incurred during the foreclosure may make it seem impossible for any borrower to pay off entirely, it is not. There are times when it is found borrowers are not responsible for these fees.

Challenging Fees During Foreclosure in South Florida

When late fees or default-related fees are charged improperly, it is possible to defend against them and show you are not responsible for them. Some of these defenses can bring a full stop to the foreclosure, while others will reduce the amount you owe on the total debt. A few proven defenses are:

• Violation of state law
• Breach of contract
• Deceptive and unfair practices
• Negligent servicing
• Breach of good faith
• Breach of fiduciary duty

In addition to challenging foreclosure fees, you can also prevent them from incurring altogether.

Preventing Fees in Foreclosure in South Florida

A number of things could have helped prevent the foreclosure process from starting in the most recent story, and they can also help thousands of other borrowers in South Florida. To prevent fees from incurring during foreclosure, you should:

• Have a will and power of attorney in place so someone else can make decisions for you in the event that you become incapacitated.
• Remain in contact with your lender, particularly if you are having trouble paying your mortgage.
• Visit the home regularly if it is not a current residence and ensure the home is properly maintained.

The above actions will prevent servicers from making simple improvements, such as mowing the lawn, and charging large fees for it.

Our South Florida Foreclosure Defense Lawyer Can Advise on Your Case

While it is possible to defend against foreclosure and the additional fees it causes, you should not do it alone. At Loan Lawyers, our foreclosure defense attorneys in South Florida can advise on your case and prepare the necessary defense to help you keep your home or avoid excessive fees. Call us today at 954-807-1361 or contact us online to schedule a free consultation.

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What Happens to Credit Card Debt After a Person Dies in Florida?

Many people are so concerned with dealing with their credit card debt while they are alive, that they do not even think about what will happen to it if they pass away. Unfortunately, debts do not always die with a person, and for those that have not made the necessary provisions, surviving family members could end up paying for it. Lenders and debt collectors do not make this any easier when they contact relatives and friends telling them to pay the debt with their own money. So, what happens to credit card debt after a person dies in Florida, and how can you protect your loved ones?

The Estate Will Pay Debt

A person’s estate is everything they own after they die. Assets often include real estate, bank accounts, retirement savings, and more. The estate is settled after a person passes away, and anyone that has a right to get paid from the estate is notified. The executor of the estate plan or the personal representative will notify all creditors that have a right to a portion of the estate either by contacting them directly or through publication.

Lenders and debt collectors only have a limited time to recover debts from the estate. After creditors have collected their share, the remainder of the estate is passed on to the beneficiaries.

How Different Debts Are Handled After Death

A person may carry many different types of debt during their life, and these are not all treated equally in the event that a person dies. The most common forms of debt a person still carries, and how they are handled after the borrower passes away are as follows:

• Personal loans: A personal loan can consist of a single agreement drafted between a borrower and a bank, or several credit cards someone held during their life. Personal loans are typically unsecured loans, meaning there is no collateral attached to the debt. If the estate does not have enough assets to pay this debt, the creditor or debt collector is usually out of options.
• Student loans: Student loans are also usually not secured, but they are often discharged when a borrower dies. This is particularly true of federal student loans. Private lenders of student loans may have different policies.
• Mortgage loans: Mortgages and other similar home loans, such as lines of equity, are secured with the property. If the debt is not properly paid, the lender can start the foreclosure process in an effort to sell it and recover at least a portion of the debt owed. The foreclosure process does not typically start immediately, as federal law allows specific relatives to take control of home loans.
• Car loans: Auto loans are also secured with collateral, which is the vehicle. When auto loans are not paid, the lender does have the right to repossess the vehicle. Still, the majority of lenders are only interested in recovering the debt and are likely to allow relatives to keep the vehicle if they are willing to take over the debt.

Although lenders and debt collectors can take assets and money from the estate in order to recover their debt, there are ways to prevent this from happening.

Property Exempt from Probate

Creditors and debt collectors can only try to recover debt from the property that is in probate. It is not uncommon for assets to pass to beneficiaries without the need for probate. Many people do this because probate is an expensive and lengthy process. Still, it can also provide the benefit of keeping assets away from creditors to pay back debt, and ensure heirs receive what is theirs.

• Designated beneficiary: Some assets include a designated beneficiary provision that stipulates how assets are to be handled after someone’s death. Beneficiaries are the people chosen to receive assets upon someone’s death. For example, life insurance policies typically outline certain beneficiaries and the death benefits available under this type of coverage are typically protected from creditors.
• Joint tenancy: Joint tenancy with rights of survivorship is a very common way to allow assets to avoid the probate process. This is commonly seen when a married couple has a joint bank account together. If one of them passes away, the surviving account holder has 100 percent control of the account. This option is sometimes risky and is not always appropriate. It is important to speak with an attorney before entering into joint tenancy to determine if it is worth it just to avoid paying a debt.

Trusts and other arrangements are also a very effective way to keep certain assets out of the probate process and therefore, protect them from lenders and creditors.

Accounts with Multiple Borrowers

While there are ways to protect assets from being sold to pay creditors and debt collectors, there are times when friends and family members may be found responsible for paying a debt. These most often when an account has multiple borrowers, such as:

• Joint accounts: Sometimes, an account such as a credit card has multiple borrowers and when that is the case, each person is considered 100 percent responsible for the debt.
• Co-signers: Co-signing a debt is a risky act because if the borrower cannot pay the debt, it becomes the responsibility of the co-signer. While there are a few exceptions in the event of death, many co-signers are still responsible for the debt even if someone passes away.
• Authorized borrowers: Some types of debt, such as credit cards, allow for one primary borrower and additional authorized users. Due to the fact that authorized users do not have an agreement with the company, they are typically not responsible for the debt if the main borrower passes away. However, if you can foresee a death and go on a big shopping spree, you could still be responsible for repaying the debt.

If you are found responsible for a debt and a collector has taken legal action against you to collect it, it is important to speak to a Florida debt defense lawyer.

Call Our Debt Defense Lawyers in Florida Today

Facing a debt lawsuit may seem hopeless, but there may be ways to defend against it. If a creditor or lender has threatened to take legal action against you, our Florida debt defense attorneys at Loan Lawyers can help. Call us today at 954-807-1361 or contact us online to schedule a free consultation.

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