What are the Consequences of Foreclosure in Florida?

Two Florida Democrats in the House of Representatives proposed a bill recently that would provide relief to renters and homeowners in the event of a natural disaster. The protection is important, as foreclosure has many consequences for homeowners.

The first repercussion that comes to mind, of course, is the fact that you will lose your home. Unfortunately, that is only the beginning and there are many other harmful impacts of a foreclosure, as well. It is for this reason that the new legislation is so hopeful for homeowners, and why you should speak to a Florida foreclosure defense lawyer any time you fear you may lose your home.

The Federal Disaster Housing Stability Act

This week, U.S. Reps. Val Demings and Al Lawson championed a bill that would enact an eviction moratorium automatically for all rental properties, and federally-backed mortgages in the event of an emergency. Demings introduced the Federal Disaster Housing Stability Act, which would automatically freeze evictions from rental properties and foreclosures on federally-backed mortgages in the event that the federal government declared an emergency.

The moratoriums would only affect the geographical locations included within the declaration of the emergency. The moratorium for renters would protect them for at least 90 days, while homeowners would have six months of protection from foreclosure.

The Act has been touted as a way to help people during one of the worst times of their lives, when a disaster strikes. Given that hurricanes and other devastating tropical storms are not uncommon in Florida, it would eliminate the risk of someone losing their home during an already difficult time. It would also allow thousands of homeowners to avoid the consequences that come with a foreclosure.

Losing Your Home

Your home is much more than just a house. It may be the place you raised your family, became part of a community, and made memories. You were likely hoping to make many more. Losing your home is devastating, and it also has a financial impact. You will also lose any equity you have in the home, which you have likely spent years building. Unfortunately, losing your home is not the only consequence of foreclosure.

Finding a New Home

Not only will you lose your home during foreclosure, but you may also face difficulties finding a new place to live. You will not be able to purchase a new home immediately after the foreclosure process, particularly if you need a federally-backed mortgage. Most people find they have to rent a home at least for a year or two after foreclosure, but landlords are sometimes hesitant to rent to people that have just been through a foreclosure. Although finding a place to rent is not impossible, you should prepare for higher security deposits, and you may have to pay first and last month before you move in.

The Impact on Your Credit Score

A foreclosure will cause your credit score to take a big hit, and it will start even before you lose the home. When you miss mortgage payments, your credit score will likely drop anywhere between 70 and 135 points. If the foreclosure proceeds and you do lose your home, your credit score will drop even further, anywhere between 85 to 160 points. Even if your credit was perfect prior to missing mortgage payments, your credit status will still drop to fair or poor.

A low credit score will hurt you for some time to come. You may be denied loans or credit cards, and if you are able to take out credit, you will pay a much higher interest rate for it, costing you much more in the end.. Fortunately, your credit score is updated every month and so over time, you can start to rebuild your credit.

The Financial Impacts

No one goes through a foreclosure when they are in a solid financial position. However, you will also face additional financial consequences associated with the foreclosure process.

Florida is a judicial foreclosure state, which means to foreclose on the home, lenders must file a lawsuit against you and take you to court. If the judge rules in the lender’s favor during the trial, the lender may then pursue a deficiency judgment against you. This will mean that you are responsible for paying the remaining balance on the home. The lender may even pursue an order for a wage garnishment or bank levy to make sure you repay the debt.

It is important to work with a foreclosure defense lawyer in Florida that can help you avoid deficiency judgments by reaching an agreement with the lender. Still, even if an agreement is reached, the discharged debt is considered taxable income, which means you will have to declare it and pay taxes on it. A lawyer can also advise you on ways you can avoid these consequences.

The Emotional Impact

Losing your home is devastating, and the foreclosure process is often long and exhausting. You may also have to significantly downsize, and you may face a social stigma afterwards. Even if you do not face any backlash in your personal life, you may feel embarrassed or ashamed about losing your home. It is important to remember that foreclosure can happen to anyone, and it does not mean that you are financially irresponsible or bad with money. While keeping these things in mind is helpful, a foreclosure is still likely going to take a big emotional toll on you.

Our Foreclosure Defense Attorneys in Florida Can Help You Avoid These Consequences

While federal legislation may provide protection for homeowners facing foreclosure during difficult times, a Florida foreclosure defense attorney can also advise on possible legal remedies. At Loan Lawyers, we have helped thousands of Floridians stay in their home, and we will put our experience to work on your case, too. Contact us today by calling (954) 523-4357 or by contacting us online to schedule a free consultation with one of our skilled attorneys and to learn about the available defenses to foreclosure.

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Jefferson Capital Systems Debt Lawsuit in South Florida

It is always unsettling to receive a notice from a debt collection company, particularly if that collector is Jefferson Capital Systems. After receiving the notice, you can likely expect a flood of harassing phone calls and letters from Jefferson Capital Systems, and they will use questionable tactics to try and recover the amount they claim you owe. Jefferson Capital is a debt collection company that purchases consumer debt from the original creditor for pennies on the dollar. Any money they recover from you goes towards their own bottom line.

Like other debt collection companies, Jefferson Capital Systems will try many tactics to try and recover the debt, including filing a lawsuit against you. If someone from the company has already started calling you, speak to a debt defense lawyer in South Florida that can advise you on what to expect, and how to prevail against the company.

Complaints Against Jefferson Capital Systems

Between 2016 and 2019, there were 1,400 complaints filed with the Better Business Bureau against Jefferson Capital Systems. Over 400 of those complaints were filed in 2019 alone. The company has also had complaints filed with the Consumer Financial Protection Bureau (CFPB). The majority of the complaints focus on billing issues and the practices used by the company when trying to collect on debt. Other consumers have complained that Jefferson Capital Systems has reported them to the credit bureau for a debt they did not owe.

If you have started to receive calls or letters from the company, or have been served with a lawsuit, do not panic. There are several defenses available in debt collection lawsuits that can stop the calls, and correct the issue.

Jefferson Capital Systems is Often in Violation of the Fair Debt Collection Practices Act

It is not uncommon for debt collectors such as Jefferson Capital Systems to try and take advantage of borrowers. They make the assumption that most people are not aware of the rights they have under the Fair Debt Collection Practices Act. Oftentimes, this is actually the case and so, the company makes harassing phone calls or uses threatening behavior in an attempt to collect on the debt.

This is why it is so important that everyone understands their rights under the FDCPA.

Under this Act, Jefferson Capital Systems cannot:

• Call you before 8:00 a.m. or after 9:00 p.m. local time in South Florida
• Call your place of employment to harass you about the alleged debt
• Use inappropriate or vulgar language when speaking with you
• Threaten you with legal action if they do not intend on following through on the threat

Removing Debt from Your Credit Report

Many of the complaints against Jefferson Capital Systems are that they report debt to the major credit bureaus when consumers are not legally responsible for that debt. As such, it is important to know how to get the debt off your credit report so your credit score does not suddenly drop due to debt you do not owe.

The first thing you should do is always obtain a copy of your credit report from the three major bureaus – Equifax, TransUnion, and Experian. Review it to ensure all the information is accurate, and only reflects debts you are actually responsible for. If there is an entry for Jefferson Capital Systems and you do not believe it is valid, contact the credit reporting bureau that is showing it on your report. These companies are legally obligated to investigate the matter and determine the legitimacy of the debt collection effort. These investigations are typically resolved within 30 days.

Ask Jefferson Capital Systems to Validate the Debt

Under the FDCPA, you have the legal right to ask Jefferson Capital Systems to verify the debt, meaning they must show that the debt is yours. You can work with a debt defense lawyer in South Florida that will send the company a demand letter, asking for the verification.

After asking the company to validate your debt, they must do so within 30 days of receiving the demand letter. If they cannot provide the appropriate documents and other evidence within that time, they must remove the account entirely from your credit report and stop contacting you trying to recover the debt.

How to Answer a Jefferson Capital Systems Debt Lawsuit

The debt collection lawsuit process begins when Jefferson Capital Systems files a complaint against you. They must then properly serve you with the complaint, which will also contain a summons that tells you of your court date. After you are served with the complaint, you then have only 20 to 30 days to answer the complaint.

It is important to keep the following tips in mind when drafting your answer:

• Do not admit that you are responsible for the debt, even if you think you might be. The burden of proof is on Jefferson Capital Systems to prove that you own the debt.
• Deny anything in the complaint you believe is untrue.
• File your answer with the clerk of court in the timeframe required.
• Ask the clerk of court for a copy of the answer and mail it to Jefferson Capital Systems, LLC.

An Affirmative Defense to a Jefferson Capital Systems Debt Lawsuit

There are many defenses available in debt collection lawsuits. Some of these involve the debt not being yours, or Jefferson Capital Systems not being able to prove that they rightfully own the debt. Other defenses are known as affirmative defenses, in which you admit you own the debt but also show the company can no longer try and collect on it.

One of these is the statute of limitations on debt collection lawsuits, which is five years from the day you took out the debt or last made payment. If more than five years has passed, the company has forfeited the right to sue you and must stop trying to collect on the debt.

Our Debt Defense Attorneys in South Florida Can Help with Your Jefferson Capital Systems Debt Lawsuit

If Jefferson Capital Systems has filed a lawsuit against you, our South Florida debt defense attorneys at Loan Lawyers can defend against it. Call us today at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how we can help with your case.

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How to Stop Collection Calls from JHPDE in South Florida

Constantly having debt collectors call you is stressful and annoying, and JHPDE Finance I, LLC, is known as being one of the most aggressive companies in their tactics. While you may be tempted to simply change your phone number, there are better ways to get these calls to stop. If you live in South Florida and are being harassed by JHPDE, our consumer debt lawyer provides some tips on how to deal with the situation.

Who is JHPDE Finance I, LLC?

Although many residents of South Florida are harassed by JHPDE, they are based out of Hazelwood, Missouri. They are a relatively new debt collection company, being founded just a few years ago in 2016. According to their website, they also share accounts with JH Portfolio Debt Equities, so these two businesses are associated with each other.

JHPDE has had several complaints filed against them since they were founded. Many consumers have been successful when filing claims against them and have received a settlement pertaining to unfair debt collection practices. This is one remedy you may have if JHPDE has violated the law by harassing you, but you must take certain steps first.

Know When Debt Collectors are Allowed to Call You

Debt collectors do not have free rein when they phone you. All debt collection companies are required to comply with the Fair Debt Collection Practices Act (FDCPA), which dictates what they are allowed to do, and what they are not allowed to do.

Under the Act, debt collection companies cannot contact you about a debt that you do not owe. You have the right to ask JHPDE to verify that the debt is yours, and that is something you should do the very first time they call you. If the company cannot provide that verification, they are barred from contacting you again under the law.

Even without asking JHPDE to verify that you owe the debt, there are certain rules the company must follow if they want to call you. The company cannot call you before 8:00 in the morning or after 9:00 at night your local time. Even though the company is based in Missouri, which is Central Daylight Time, JHPDE must follow the law and cannot call you too early or too late in Eastern Daylight Time. JHPDE also cannot call you constantly, and they cannot call you at a certain time if you have told them it is an inconvenient time for you.

How to Stop Collection Calls from JHPDE

You are not required by law to communicate with JHPDE when they call you. If you do not answer the phone when they call, or you hang up on them once you learn who is calling, the company cannot take any action against you based on that fact alone. However, if you have hung up on them or told them that you did not want them calling you any longer, and they do so anyway, they are in violation of the law.

The simplest way to stop JHPDE from calling you is to inform them that they are only allowed to contact you in writing. Once you have told them this, they are only allowed to communicate with you by sending a letter. Receiving communication from JHPDE works in your favor for a number of reasons. The first, and perhaps most obvious, is that you will no longer have to deal with phone calls from the company. However, only receiving communication in writing can also provide the important evidence you may need when defending your case, or when pursuing a claim against the company.

The best way to stop JHPDE from calling you is to send them a cease and desist letter. Within the letter, you should tell the company to stop contacting you through any form of communication, written or via the phone. It is important to note that while you can send a cease and desist letter to JHPDE, it only applies to them, and not someone that is working on behalf of the company you originally borrowed the debt from.

When JHPDE Calls You About Someone Else’s Debt

There are several reasons why JHPDE may call you about someone else’s debt. It is not uncommon for people to receive calls from JHPDE when they are trying to reach the previous owner of the phone number. You may think that simply telling them they called the wrong number should be enough but too often, it is not.

JHPDE may also call you about someone else’s debt if they are trying to locate someone else. They are allowed to do this under the law, but they can only ask for the borrower’s address, phone number, and employment information. They can only contact you one time, and they cannot provide you with any information about the debt.

Regardless of the reason JHPDE has for calling you about someone else’s debt, you should send them a cease and desist letter, just as you would if the debt was yours. Tell them to stop calling you, and repeat that the debt is not yours. If JHPDE continues to call, you can report them to Florida’s Attorney General, the Consumer Financial Protection Bureau, and the Federal Trade Commission.

JHPDE can contact you one more time after they receive your cease and desist letter. They must do so in writing and they must tell you one of three things. They can tell you that they will no longer try to collect the debt from you, that they may take certain action against you, or that they are taking legal action against you. However, if they tell you that they may take action against you, it cannot be an empty threat.

Call a Debt Defense Lawyer in South Florida

A South Florida debt defense lawyer is an invaluable resource when going up against aggressive collectors such as JHPDE. At Loan Lawyers, we have helped hundreds of clients fight back against this company and others, and we will help you, too. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

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What to Do with an Underwater Mortgage in Fort Lauderdale

An underwater mortgage is a financial burden, but it is also an emotional one. When a home is underwater, it is easy to live in fear or denial, but it is important to explore your options. Home prices in Fort Lauderdale have soared over the recent years, and the national negative equity share hit its lowest point in more than ten years.

Still, over five percent of homeowners with a mortgage were delinquent on payments in March of 2021, including those that are in forbearance. That number is high, and it is up from 3.2 percent prior to the pandemic. Juggling an unfavorable mortgage while still trying to keep the home takes a toll on anyone that attempts to do it, but it is important to know how to seek help for an underwater mortgage.

What Exactly is an Underwater Mortgage?

Everyone knows the value of their home when they first purchase it, but that can change over time. An underwater mortgage, also sometimes referred to as an upside-down mortgage, means there is more owed on the home than what it is worth. This situation places homeowners in a precarious situation. They can catch up on payments and live on less, and it also makes it much more difficult to sell the home.

What Causes Underwater Mortgages?

Mortgages fall underwater for two reasons. The homeowner either misses several payments, or the value of the property decreases.

First, we will consider missed payments. As soon as you start making payments on your mortgage, the amortization process starts. A mortgage is essentially one really big loan that is split into equal installments that include both principal and interest. In the early years of the mortgage, most of the payment you make covers the interest. As time passes, the amortization schedule will dictate how the installments are divided and eventually, more of your payment covers the principal amount of the loan, not the interest.

When you miss a mortgage payment, the interest on the loan continues to accumulate. Compounding interest makes it even more challenging to repay the loan because missing a payment forces you to increase your monthly payment to match the interest that has accumulated. Eventually, the mortgage loan may go underwater.

While making payments on your mortgage may be somewhat in your control, the property value of your home is completely out of your control due to fluctuations in the market. For example, you may purchase a $300,000 home. Your down payment is $11,000 and your lender covers the remaining $289,000 with a mortgage loan.

At some point in the future, some of your neighbors may decide to sell their homes. With little buyer interest, your neighbors lower their asking price, which also decreases the property value of your home. After the homes are sold, you may have a remaining balance of $250,000 on your home, but it is only worth $200,000.

How to Determine if Your Home is Underwater

If you fear that your home is underwater because you have missed mortgage payments, it is quite easy to determine if your home is underwater. Your home is particularly susceptible to falling underwater if you missed mortgage payments early on in the loan. Simply compare the current principal on the loan with the original and determine which one is higher. If your home has not increased in value and your current principal is higher than the original, your home is underwater.

Determining if your home is underwater due to falling property values is a bit more complex. You should regularly monitor the prices of homes in your area because if the value of property declines, the value of your home will, as well. You should not only monitor the value of homes in your neighborhood, but in the larger surrounding area, as well.

If you want a more precise evaluation of the value of your property, you can obtain an independent appraisal. An appraiser will visit your home, inspect the condition, and compare it with other homes in your area. If the estimate you receive from the appraiser is less than the remaining balance on your mortgage, your home is underwater.

Options When Your Home is Underwater

Dealing with an underwater mortgage is very difficult, but you do have options. They include:

• Staying in your home: Start by having an honest discussion with your lender about your financial challenges. They may be able to help you avoid foreclosure with a forbearance plan, which could reduce or pause your payments for a certain period of time. Your lender may also be willing to work out a repayment plan with you, although you will have to be in a reasonably financially stable position for this to happen. You may also find help through the Department of Housing and Urban Development (HUD).
• Refinancing: Most lenders will require you to have a certain amount of equity in your home before you become eligible for refinancing. As such, it may seem as though refinancing is not an option if your home is underwater. However, refinancing may still be possible if your mortgage is federally-backed by Fannie Mae and Freddie Mac.
• Sell the home: If you do not believe that you can get caught up on your missed mortgage payments, you may have to think about selling your home. Although the proceeds from the sale likely will not provide enough to fully cover the mortgage loan, you could make up the difference.
• Defend against foreclosure: There are many defenses available for foreclosure, such as a deed in lieu. A foreclosure defense lawyer in Fort Lauderdale can explain your options and advise on which is best for your case.

Call Our Foreclosure Defense Lawyers in Fort Lauderdale Today

If your home is underwater, our Fort Lauderdale foreclosure defense lawyers are here to help. At Loan Lawyers, we have helped thousands of homeowners defend against foreclosure and stay in their homes, and we want to put that experience to work for you. Call us today at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how we can help.

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What is Medical Bankruptcy in South Florida?

The cost of healthcare in the United States is climbing, and it is one of the biggest financial burdens for Americans. In 2018 alone, medical care in the country cost $3.6 trillion. A recent Gallup poll showed that concerns about bankruptcy due to medical debt are also rising in the country. According to the poll, 15 percent of American adults reported that at least one person in their home had medical debt that will not be repaid within one year. Even those that have health insurance still incur copays and high deductibles that impose a financial burden on them.

Clearly, if you have medical debt, you are not alone. High medical expenses actually form the basis of many consumer bankruptcy cases. It is difficult to determine how many people file for bankruptcy based on medical debt, but it has been estimated that the number falls anywhere between 26 and 62 percent. If you have a high amount of medical debt and are considering bankruptcy as a way to discharge it, below are some important things to know.

Is There Such a Thing as Medical Bankruptcy in South Florida?

No. ‘Medical bankruptcy’ is not something that actually exists, even when you are trying to discharge medical debt during the process. This means that when you file bankruptcy to discharge medical debt, you cannot limit your case to avoid paying those bills alone. The bankruptcy laws of the state and country are intended to be as fair as possible to both you the consumer, and the creditor that will likely not recover the full amount of debt you owe.

In bankruptcy, medical debt is treated the same as credit card debt, personal loans, and utility bills under the bankruptcy code. Due to this, if you are filing bankruptcy as a result of medical bills you cannot pay, you can also discharge your other unsecured debts, as well. During the bankruptcy process, you must list all of your personal property, real estate, as well as your debts.

You must also list every household expense you are currently facing, and provide full disclosure about the income of your household. This is true even if your spouse does not file bankruptcy with you. You will also likely have to provide any information about debts you have recently paid, and any transactions such as property sales or transfers you have recently engaged in. All of this information is required, along with your medical debt, when filing bankruptcy.

The majority of people that file bankruptcy file either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Regardless of the type of bankruptcy you file, it will remain on your credit history for seven to ten years.

Filing Chapter 7 Bankruptcy for Medical Debt

Chapter 7 is a fairly straightforward process that will last approximately four to six months. If you are successful with your case, your debts will be discharged and forgiven. You may not be able to discharge all your debts in bankruptcy. While you can typically discharge medical debt and credit card debt, expenses such as child support and alimony are typically not dischargeable.

If you want to keep certain property that is considered secured debt, such as your home or vehicle, you will have to continue to make payments after the bankruptcy case is final. You may be able to keep the property if an exemption applies to it. If you have assets that are not considered exempt, a trustee will seize it. The assets are then sold and the proceeds of the sales are used to repay the creditors. Although the law does allow for this process, it rarely happens. Property is only seized in approximately five percent of bankruptcy cases.

Not everyone filing bankruptcy qualifies for Chapter 7. To qualify, you must pass a means test which involves calculating your family income and all of your expenses. You will qualify if your income is less than the average income in South Florida, after your necessary and reasonable expenses are deducted. If your income is higher than the average income, you will have to file Chapter 13 bankruptcy to manage your medical debt.

Filing Chapter 13 Bankruptcy for Medical Debt

When filing Chapter 13 bankruptcy, your debts are not actually discharged but instead, they are organized into a repayment plan that will last between three and five years. The amount you will have to repay is based on the debt you owe, and the amount of disposable income you earn.

Still, even though you have to repay a portion of your debt, it is still possible to discharge thousands of dollars of debt that you will not be responsible for repaying. It is important to note that because a portion of your disposable income will go towards repaying your debt, you may still have to live on considerably less after the bankruptcy case is closed.

Do You Lose Your Doctor After Discharging Medical Debt?

The relationship between a doctor and their patients is an important one and many people are hesitant to file bankruptcy for medical debt because they do not want to lose their doctor. Although hospitals are prohibited under the law from denying care to a patient because they cannot afford to pay for the treatment, the same does not hold true for discharging medical debt through bankruptcy. If you discharge medical debt through bankruptcy, your doctor can use that as a reason to no longer treat you as a patient.

Our Bankruptcy Attorneys in South Florida Can Help with Your Medical Debt

If you have incurred a high amount of medical debt, our South Florida bankruptcy attorneys at Loan Lawyers are here to help. We will advise on your case, help you determine which type of bankruptcy is right for you, and guide you through the entire process so you have the best chance of a favorable outcome. Call us today at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how we can help.

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How to Handle a Crown Asset Management Debt Lawsuit in Fort Lauderdale

Life is full of surprises, and this is especially true if you are facing financial difficulties. You may have found yourself drowning in debt that is now growing out of control, and you will also accumulate fees and interest that only make it more difficult to get back on solid financial ground. If you have been getting calls from creditors and debt collectors, there is a good chance that one of the companies calling you is Crown Asset Management. Our Fort Lauderdale debt attorneys at Loan Lawyers can advise on your case and prepare a solid defense to give you the best chance of a positive outcome.

What is Crown Asset Management?

Crown Asset Management is one of the biggest ‘junk debt buyers’ in the country. The company is based in Georgia and like other debt collectors, they buy unpaid debts for just a fraction of what the debts are actually worth. After Crown Asset Management has purchased the debt, they will then pursue the debt.

Crown Asset Management will buy debts from credit card companies, but there are others they will also purchase debt from. These include banks, credit unions, hospitals, other medical providers, automobile finance companies, utility companies, and retailers. Crown Asset Management purchases thousands of these debts across the country every year.

Why is Crown Asset Management Suing Me?

Junk debt buyers such as Crown Asset Management will use many tactics in an attempt to collect on the debt they claim you owe. One of the most common ways they do this is by filing a lawsuit against you.

When Crown Asset Management files a lawsuit against you, they do so in the hopes that you will not respond to the lawsuit. This is one of the biggest mistakes you could make if you are facing a lawsuit. If you do not appear in court with a defense against the lawsuit, the judge will likely issue a default judgment for Crown Asset Management, which essentially means that they will win their case.

If the judge does issue a judgment against you, the consequences could remain with you for up to 20 years, and it will also stay on your credit report for seven years, or even longer. A judgment issued against you will make certain things in life very difficult. You will not be able to buy a home or a vehicle, and you may also be unable to get a new loan or open a new credit card account.

Unfortunately, these consequences are just a few you will face if you are not successful with your Crown Asset Management lawsuit. If the company is successful with proving that you are liable for paying the debt, they may garnish your wages, seize your property, place a lien on your home, or even take funds from your bank account.

What to Do if You are Sued by Crown Asset Management

If you have been served with a lawsuit filed by Crown Asset Management, there are specific steps you should take, as it is the only way to protect your rights and to position yourself for a successful outcome.

Again, one of the most important things to do is to not become paralyzed by fear or anxiety that will prevent you from taking the necessary action. The lawsuit will not simply go away, regardless of how much you want that to happen. Junk debt buyers are counting on the fact that you will ignore the lawsuit, as so many consumers do.

Crown Asset Management, along with other junk debt buyers, prey on vulnerable consumers that are struggling financially. When they file a lawsuit against you, they will assume that you will not respond or challenge their documents or arguments. They can take this gamble because so many consumers do not take the necessary action after a lawsuit has been filed against them, allowing them to access the consumer’s funds and collect on the debt.

Instead of ignoring the lawsuit and hoping it will go away, it is important to respond to the complaint. This will prevent Crown Asset Management from obtaining a default judgment against you. You will likely only have between 20 and 30 days to file your answer to the complaint, so it is important to take this action quickly. If you do not respond to the lawsuit in the required amount of time, Crown Asset Management can still obtain a default judgment against you.

Unfortunately, simply filing an answer to the complaint does not mean an end to your lawsuit. The complaint will also contain a summons, which will contain a court date when you must appear. Prior to the trial, you will also enter a discovery phase in which you can ask Crown Asset Management to produce documents and other evidence they are planning to use to win their case.

The discovery phase is incredibly important in a debt defense lawsuit. It is during this time that a debt lawyer in Fort Lauderdale will confirm whether the company is suing the wrong person, if they have misstated the amount owed, or if the statute of limitations has expired. If the discovery process does not provide an appropriate defense, there may still be other defenses available in your case, such as filing for bankruptcy. As soon as you file bankruptcy, an automatic stay is issued, which prevents creditors and debt collectors from contacting you or trying to collect on the debt.

Our Debt Defense Lawyers in Fort Lauderdale Can Fight Your Lawsuit

If Crown Asset Management has filed a lawsuit against you, our Fort Lauderdale debt attorneys at Loan Lawyers can provide the solid defense you need. We will discuss your financial goals with you, advise on any potential defenses in your case, and provide a strategy for moving forward to obtain the resolution you need. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation with one of our seasoned attorneys and to learn more about how we can help.

People Also Ask

• Why is Crown Asset Management suing me?
• Does Crown Asset Management always sue?
• How can a debt lawsuit be dismissed?
• What should I do if a debt collector sues me?

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Sued by Cascade Capital? Call Our Debt Defense Firm in Fort Lauderdale

Cascade Capital is a third party debt collector that usually purchases delinquent debt from Santander Consumer USA. If you took out a vehicle loan with Santander at some point and the vehicle was later repossessed and sold at auction, Cascade Capital may now be the one trying to sue you. When Cascade sues you, they will attempt to pursue the deficiency balance, or the remainder of what you owe after the car was sold at auction.

Hundreds of debtors face lawsuits from Cascade every month in Florida, and many of them are right here in Fort Lauderdale. If you are being sued by Cascade Capital, it is important to call our debt defense firm immediately so we can protect your best interests.

Do Not Ignore a Summons from Cascade Capital

Many people receive a summons from Cascade Capital in the mail and are unsure about what to do about it. The most important thing to do is to not ignore it. Again, Cascade Capital is a third party debt collector and so, many people do not recognize the name and ignore the summons, thinking it was sent in error.

Cascade Capital is actually hoping that you ignore the summons. If you do, they can pursue a default judgment against you that may allow them to levy your bank account or garnish your wages. They may be successful in obtaining that default judgment because if you do not respond to the summons, you will not have the chance to defend yourself.

If you have received a summons from Cascade Capital, it means they have filed a lawsuit against you. If you do not respond, the company may obtain a default judgment against you, even if they do not have the legal right to continue to pursue payment for the debt.

Before responding to the summons, you should speak to a Fort Lauderdale debt defense firm. A lawyer will advise you on the possible defenses available for your case, and will represent you throughout the lawsuit to give you the best chance of a favorable outcome.

Cascade Capital May Not Have Standing

Again, Cascade Capital buys thousands of debts from Santander, and those in Fort Lauderdale represent just a fraction of them. Along with these debts comes an incredible amount of documentation, and things are bound to get lost along the way, or improper transactions may result in missing documents. When this is the case, Cascade Capital cannot prove that they own the debt, which means they have a lack of standing and cannot file a lawsuit against you.

After filing a lawsuit against you, Cascade Capital must prove that they own the debt, and that the records they kept are accurate. This is often made even more difficult if they were the third or fourth company to purchase the debt, which is often the case.

You Have Already Settled the Debt

Perhaps you settled the debt with Santander, or maybe there was a prior settlement between you and another debt collector that purchased the debt. If you did, this can certainly provide a defense to any lawsuit filed by Cascade, but you will have to prove that you have already settled the debt. To do this you will have to show documentation of the settlement agreement, and any records that prove you made the agreed upon settlement amount.

It is for this reason it is so important to keep any documents associated with debts, settlements, creditors, and debt collectors. If you do not, third party debt collectors such as Cascade may use that to their advantage when you do not have the documentation that could provide a defense for your case.

Cascade May Have Sued the Wrong Party

While it may sound impossible, Cascade sometimes sues the wrong party and that can also work as a defense. For example, if a married couple took out a car loan and both of their names were on it, they are both liable for the debt. However, if the couple got a divorce and the debt was assigned to just one party during the divorce, they are the only one liable for the debt. Still, Cascade may try to pursue the spouse no longer liable for it.

This is actually a legal practice. Debt collectors are not required to keep updated on what is going on in the family courts and if you do not remove your name from a debt that you are no longer liable for, you may still be held liable for it. It is important to remove your name from any debt that is no longer yours after divorce, or when you have co-signed for someone and your name is no longer required to hold the loan.

The Statute of Limitations has Expired

Like in all states, debt in Fort Lauderdale is governed by the statute of limitations under state law. This is the amount of time Cascade has to sue you over past debt. In Florida, the statute of limitations on collecting debt is five years, but Cascade is known for ignoring this time limit and pursuing debt collections anyway.

Cascade often argues that you made a payment, which has restarted the clock on the statute of limitations. When they cannot prove that with a bank record or a copy of a check, they may even argue that you paid in cash. A debt defense lawyer can fight these claims and prove that the statute of limitations has expired and all debt collection efforts must stop.

Call Our Debt Defense Law Firm in Fort Lauderdale Today

Receiving a summons from Cascade is scary, but it does not have to mean that they have automatically won their case. At Loan Lawyers, our Fort Lauderdale debt defense firm knows how to build you a strong case that can shield you from liability, and harassing phone calls in the future. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation so we can advise on your case.

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How to Lower Your Mortgage Payments in Broward County

During the pandemic, millions of homeowners fell behind on their mortgage payments and the federal and state governments provided many options for relief. Now many of those programs have expired, or are set to, but many people are still facing economic hardship. Recently, the Biden Administration announced a new program in an attempt to prevent a sharp increase in foreclosure cases in the next few months by lowering the mortgage payments for millions of homeowners.

Unfortunately, not all homeowners in Broward County will be covered under this new program. For these individuals, it is important to know that there are other ways to lower your mortgage payments if you do not qualify for the federal program.

The New Government Program

On July 23, the Biden Administration announced that loans backed by the Federal Housing Administration and other federal agencies to extend the term of all mortgage loans. This means locking in interest rates, as well as offering lower monthly principals. According to the Urban Institute, approximately 75 percent of new mortgages are backed by the federal government.

The changes are intended to help homeowners that entered into a forbearance program during the pandemic, allowing them to not make mortgage payments for a maximum of 18 months. Now that many of those programs are set to expire, and people still have not gotten back on their feet financially, millions of homeowners will soon face foreclosure, and that is something the new program is meant to remedy.

According to Black Knight Inc., approximately 1.55 million people are seriously delinquent with their mortgage payments, which means they have not made a mortgage payment in at least 90 days. The majority of these homeowners have a forbearance plan and are most at risk for foreclosure in the coming months. They make up approximately 2.9 percent of the 53 million mortgages in the country, which is down from a record of 4.4 percent in August and September of 2020.

While the new program does bring relief for millions of homeowners, it sadly does not cover everyone. Homeowners that will not be provided protection under this plan should know the other methods that can help them lower their monthly mortgage payments.

Contact the Lender

Many people often think to first turn to other options when trying to avoid foreclosure or lower their monthly mortgage payments, and they do not think to contact their lender. In fact, this is a mistake. Contacting your lender and asking about the different options that could lower your monthly payments is a critical, and often overlooked, step when trying to reduce your payment. Contrary to what many people think, your lender is not against you and does not want to foreclose on your home. They are much more likely to try and offer a remedy that will work for you and them both.

While speaking to your lender is the first step you should take, you should not do it alone. A foreclosure defense lawyer in Broward County will have the necessary experience to speak to your lender with you or on your behalf and can even negotiate for a lower amount.

A lawyer will also advise on whether you are eligible for a lower rate. To qualify, an individual must:

• Ask for the lower amount they are seeking,
• Be in good standing with their mortgage currently, and
• Use the money for their primary residence

When a person meets the above criteria, lenders are likely to grant a lower rate. However, you cannot count on your lender to contact you and offer you one. Lenders will only provide this relief to individuals that qualify, and that ask for the help.

Consider Refinancing Your Mortgage

For many homeowners, the best option is to refinance their mortgage. Unlike a forbearance plan, which allows you to defer your mortgage payments to a later date, a refinance essentially gives you a whole new loan. When you refinance your mortgage, you can receive a new loan that changes that interest rate, the term of the loan, and even the principal balance. There are many free online tools that will allow you to determine if refinancing your current loan will lower your monthly payments.

For homeowners that are considering a refinance, there is perhaps no better time than now. Mortgage rates are at record lows, or nearly there, and offer the bulk of homeowners that have not refinanced their home loan to lower their monthly mortgage payment. When refinancing, it is best to compare multiple lenders in order to get the best interest rate.

Consider a Loan Modification

If your income level has dropped but you are still employed, you should consider applying for a loan modification. Unlike refinancing, a modification will leave you with your current loan, but with certain terms changed. Loan modifications have many benefits over refinancing, including that they do not require a credit check, and there are often not the costs incurred that are associated with refinancing.

Again, when seeking a loan modification, it is important to work with a foreclosure defense lawyer in Broward County. Foreclosure defense lawyers are highly experienced in negotiating a loan modification and can help you secure the lowest amount possible, and show that your income can support it so you do not end up in the same position in the future. Lenders are typically likely to offer a loan modification, as they do not want to deal with the costs and headache of foreclosure, either.

Call Our Foreclosure Defense Lawyers in Broward County Today

If the COVID-19 pandemic has resulted in financial hardship to you and your family and you now need to lower your monthly mortgage payment, or you are facing foreclosure, our Broward County foreclosure defense lawyers can advise on your case. At Loan Lawyers, we know how to negotiate with the lenders in the area, and will provide the sound legal advice you need. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

 

People Also Ask:

• What is the average mortgage payment in Florida?
• How much income do you need to buy a $500000 house?
• How much is a down payment on a house in Florida?

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What to Do When Your Loan Forbearance Expires

In response to the COVID-19 crisis, the federal government passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provided a forbearance for struggling homeowners and other consumer protections. However, these protections via forbearance are expiring soon. Here is what you need to know about this issue and your options for mortgage assistance.

COVID Forbearance Protections Under the CARES Act Are Expiring

The CARES Act provided certain homeowner protections that were originally set to expire by June 30, 2021. However, the U.S. Federal Housing Administration (FHA) has announced it is extending the moratorium on foreclosure actions through July 31, 2021, joining with other federal agencies that are taking similar actions. The moratorium applies to the following types of properties:

• FHA-insured single-family mortgages for properties that are not vacant or abandoned
• Multifamily FHA mortgages that have been current on payments as of Feb. 1, 2020
• USDA Multifamily Housing Communities
• FHA, Fannie Mae, or Freddie Mac-owned real estate owned properties they acquired through private mortgage lenders via foreclosure or deed-in-lieu of foreclosure transactions
• Fannie Mae and Freddie Mac-owned single-family mortgages

Homeowners have until Sept. 30, 2021 to request mortgage forbearance if they have not already done so. Mortgage servicers generally cannot foreclose on properties unless the mortgage is more than 120 days past due, but there are exceptions. Typically, a loan servicer will contact the borrower at least 30 days before their final forbearance period ends to discuss additional mortgage assistance options.

4 New Borrower Protections

Additional borrower protections that were put in place include:

• Borrowers must have a meaningful opportunity to apply for options that allow them foreclosure defense.
• Servicers can offer COVID-affected borrowers streamlined loss mitigation applications without having to apply for every possible type of loan modification.
• Providers must give additional information about the availability of loss mitigation options to certain delinquent buyers after initiating contact with the homeowner.
• Loan servicers must notify borrowers in forbearance due to a COVID-19 related hardship at least 30 days before the forbearance expires of this fact and to inquire if the borrower wans to complete the loss mitigation application.

These consumer protections are intended to give borrowers a meaningful opportunity to pursue other available options to avoid foreclosure, speed up the process, and inform borrowers of their options.

Depending on the particular circumstances involved and your loan service provider, you may be able to defer your missed payments to the end of your mortgage, pay back a portion of your missed payments over the course of a year, receive a loan modification that lowers your monthly payment through a lower interest rate, lower principal balance, or longer mortgage term, or sell your property.

Get A Loan Modification or Foreclosure Defense Lawyer 

If your forbearance is expiring and you are concerned about how you will make up your payments, Loan Lawyers is here to help. We are a foreclosure defense, debt defense, and bankruptcy law firm. Our experienced attorneys will help you determine the best solution for you, based on your individual needs and circumstances.

We have successfully helped over 7,000 people get out of debt and get a fresh start, saved over 3,000 homes from foreclosure, eliminated over $100 million in mortgage principal and debt and won over $25 million for our clients for bank, loan servicer, and debt collector violations. Contact us to begin the process of relief.

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