Do You Still Owe Money After Foreclosure?

It can be difficult enough to pick up the pieces and move on with your life after losing your home to foreclosure. Many homeowners simply do not consider, “Will I owe money after foreclosure?” Sadly, the answer may be “yes.” Because of this possibility, it is important to take any notice of foreclosure you receive seriously. Not only can you lose your home, but you might be required to continue paying the lender even after you’ve lost your home.

What is a Deficiency Judgment?

When your mortgage lender forecloses on your home, they’ll attempt to sell your home to recoup as much money as possible. Depending on how much you owed, the value of your property, and other conditions, the foreclosure sale may not cover the full amount you owed to your lender.

If this is the case, the lender could go to court to obtain a deficiency judgment. A deficiency judgment allows your lender to take legal action against you to recover the difference between what your home sold for and what you still owe (this is known as a “deficiency”).

Can Your Lender Sue You for the Deficiency?

If your lender goes to court and obtains a foreclosure against you, they are allowed to file a motion after foreclosure to recover the deficiency you still owe. If they obtain a deficiency judgment against you, they may be able to put a lien on your remaining assets, garnish your wages, and take additional steps to claim the money they’re still owed under the terms of your mortgage.

Exceptions and Considerations

In Florida, state law says that your lender cannot file for a deficiency judgment unless the fair market value of your home is less than what you still owe your lender. Additionally, your lender only has one year from the date the foreclosure sale is completed to file for a deficiency judgment. Furthermore, just because your lender is allowed to seek a deficiency judgment against you does not necessarily mean that they will, especially if you have few assets that they could claim to make up for the deficiency.

If your lender does file for a deficiency judgment against you, it’s up to a judge to determine the final amount the lender can receive. With help from a foreclosure lawyer, you may be able to convince a judge to minimize the amount you have to pay back to your lender. A foreclosure defense lawyer can also discuss other defenses you may be able to raise.

What If You Can’t Pay the Deficiency?

If you can’t pay back a deficiency after a foreclosure, there are a few ways the case could proceed. If you have any remaining assets that could cover the deficit, your lender might go after them, or you could sell them yourself. You might also be able to have a deficiency judgment discharged by filing bankruptcy.

Contact a Foreclosure Attorney Today

Don’t let the banks take advantage of your situation. Instead, talk to an experienced Florida foreclosure defense lawyer about your rights and legal options. The foreclosure defense lawyers at Loan Lawyers have over 100 combined years of experience and have saved over 3,000 homes in Florida from foreclosure. Let us evaluate your situation during a free consultation today.

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In Florida, Can I Discharge Debts Incurred as a Result of Fraud in Bankruptcy?

Filing bankruptcy does provide a great sense of relief to borrowers, and allows them to get back on their feet financially. Unfortunately, too many people in Florida are surprised to learn that filing bankruptcy will not discharge every type of debt they carry. Debt incurred as a result of a fraudulent action or inaction is one type of debt borrowers cannot discharge during bankruptcy. In some cases, however, the creditor has the burden of proof to show that fraud occurred.

If you are filing bankruptcy, you should always work with a Florida bankruptcy lawyer that can help you through the process. If a creditor is accusing you of fraud and therefore, you are at risk for not getting a full discharge, speaking with an attorney that can defend against these accusations is essential.

Can Bankruptcy Discharge Fraud-Related Debts?

Many people assume that when you file bankruptcy, your debts are discharged and you start with a clean slate right away. This is not true and just because you file bankruptcy, it does not mean that every type of debt you carry will be discharged. If you were convicted of a crime such as embezzlement, it will stay on your record regardless of whether you file a Chapter 7 or Chapter 13 bankruptcy, even if you do not have any assets. When the bankruptcy court sees this conviction on your record, they will likely not discharge the debt because it was obtained through fraudulent acts.

The situation is sometimes different if a debt is based on a civil judgment that arose from your allegedly fraudulent actions. In these cases, the creditor accusing you of fraud has the burden of proof to show why the bankruptcy should not discharge the debt. A judge will then decide whether the debt should be discharged as part of the bankruptcy case. If the judge rules in your favor, the debt is discharged along with your other debts.

It is easy to assume that any debts classified as potentially fraudulent will not be discharged in bankruptcy. Fortunately, this is not the case and sometimes, creditors will use the argument simply so that you are still responsible for repaying that debt and they can recover their costs and profit. If you have debt that involves fraud, embezzlement, or some other type of misconduct allegations, it is critical that you speak with a Florida bankruptcy lawyer that can help you get the debt discharged to the fullest extent possible.

Requirements for Borrowers and Credits when Debts Involve Embezzlement

The definition for embezzlement states that it occurs when a person acts fraudulently while acting in a fiduciary capacity. If a creditor accuses you of this type of action after you have filed bankruptcy, they must act quickly.

According to Section 341 of the Bankruptcy Code, you will have to attend a meeting of the creditors. The judge assigned to your case is not present at this meeting and it will usually occur between 21 and 50 days after you have filed your case. During the meeting, the bankruptcy trustee will review your case. You will likely have to answer questions, and do so under oath, about your conduct, liabilities, property, financial situation, and other matters. The trustee will also make sure you understand the bankruptcy process during this meeting.

It is called a meeting of the creditors because any creditors you owe are notified of the meeting. They are given the opportunity to attend and ask you questions pertaining to the debt or any other matter concerning the administration of the case. Creditors are not required to attend these meetings, and they do not waive any rights if they do not attend. The meeting of the creditors generally only lasts between ten and fifteen minutes. However, if a creditor is accusing you of embezzlement, it may take longer.

Within 60 days of the meeting, or within 60 days of the first day if the meeting extends over several days, a creditor must initiate an adversary proceeding if they are accusing you of fraud. Essentially, adversary proceedings are lawsuits filed during the bankruptcy process.

Overall, creditors usually have approximately 90 days to initiate an adversary proceeding, as the meeting of the creditors is usually about 30 days after a borrower files for bankruptcy. Creditors do have a right to request an extension on the amount of time they have to initiate the proceeding, but they must do so within 60 days after the borrower files bankruptcy.

What Must a Creditor Prove?

Fortunately for borrowers, an accusation from a creditor about fraud is not enough to keep the debt from being discharged. To prove their argument, creditors have to prove two elements of their case.

The creditor must first prove that you acted in a fiduciary duty, or that you were acting in trust for another person. The creditor must then show that you took the property and used it for a purpose that the rightful owner did not consent to. If the owner gave you permission to use the property as you did, such as to obtain a loan, the creditor will not be able to prove their case.

After the creditor has made their arguments, a judge will then determine whether the facts of the case indicate that fraud occurred. Generally speaking, a judge will consider whether there were omissions or misrepresentations that caused loss to a victim. If a judge does determine the case involved fraud, they will not discharge the debt and that judgment would likely apply to any future bankruptcy case you file.

Our Bankruptcy Lawyers in Florida Can Help with Your Case

It is always important to work with a Florida bankruptcy lawyer when filing, but it is even more so when a creditor is claiming you acted fraudulently. At Loan Lawyers, we will defend against these arguments so you get as much debt discharged as possible, making it easier for you to move forward. Call us today at (954) 523-4357 or contact us online for a free consultation.

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Is Portfolio Recovery Associates, LLC a Legit Company?

Debt collection companies such as Portfolio Recovery Associates, LLC, are known for their aggressive, and sometimes abusive, collection tactics. When these collection companies harass or threaten you, it is natural to wonder if they are even a legitimate company. Many debt collection companies are scams and make their money from defrauding other people.

Portfolio Recovery Associates, LLC. is a legitimate company, but that does not always hold true for their debt collections tactics. If you are receiving calls from Portfolio Recovery Associates, LLC, or the company has already taken legal action against you, it is important to speak to a Florida debt defense lawyer that can give you the best chance of a positive outcome.

What is Portfolio Recovery Associates, LLC?

Portfolio Recovery Associates, LLC has been around since 1996, and they are based out of Norfolk, Virginia. However, they buy debts from all over the country and many Floridians are contacted by them regularly. In fact, the company is one of the biggest debt collection businesses in the world.

The company touts itself as a debt collection agency that places a focus on full compliance with the regulations and the laws that govern the industry. The company works in a similar manner as other debt collectors. They purchase debts from banks, creditors, hospitals, and more, and they only pay pennies on the dollar for them. That essentially makes Portfolio Recovery Associates, LLC, the prime creditor and gives them the right to contact borrowers and file lawsuits to recover the debt.

This arrangement works out well for the creditor, who is guaranteed to recover at least a portion of the debt right away. Portfolio Recovery Associates, LLC, then goes after borrowers for the full amount of the original debt, and not the amount they paid for it.

Is Portfolio Recovery Associates, LLC, a Legitimate Company?

Portfolio Recovery Associates, LLC, is not a scam. They are a legitimate company, but that does not mean they always act fairly. The company has been known to file a lawsuit right away before trying to retrieve the money owed. If they are successful, they may garnish your wages, levy your bank account, and take other legal action against you.

When Portfolio Recovery Associates, LLC files a lawsuit against you, they are hoping that you will ignore it. If you do, they can obtain a summary judgment and automatically win their case. It is not uncommon for debt collectors, including Portfolio Recovery Associates, to do this in an attempt to scare people into paying the debt. It is natural to panic any time a lawsuit is filed against you, but it is important to remain calm. Some lawsuits filed by debt collection companies are not legitimate and you could have a valid defense before the case even really gets started.

Your Rights if Portfolio Recovery Associates, LLC, is Calling

It is not uncommon for debt collection companies such as Portfolio Recovery Associates, LLC, to use harassing or threatening tactics when trying to collect debt. They are hoping that the more aggressive they are, the more you will want to stop the calls and so, you will just pay the debt. Sometimes, debt collection companies even get the wrong information by mistake, and the collection notices they are sending do not even belong to you.

Under the Fair Debt Collection Practices Act (FDCPA), Portfolio Recovery Associated is not allowed to:

• Contact someone that is not the main borrower on the account
• Threaten you with wage garnishment, harm of credit, or referral to a lawyer without the actual intention of following through on those threats
• Phone any time before 8:00 a.m. or 9:00 p.m.
• Contact your employer, or try to reach you at your place of employment, after you have asked them not to
• Tell your employer about your debt
• Disclose any information about the debt to anyone else without your permission
• Send collection notices that appear to be sent from a government office or courthouse
• Threaten you with arrest if you do not pay the debt

When a debt collection company violates your above rights, you can file a lawsuit against them to claim certain damages.

What to Do if Portfolio Recovery Associates, LLC Contacts You

No one wants to deal with debt collection companies. Knowing what to expect, and the steps you should take when speaking with them can make it easier.

If Portfolio Recovery Associates, LLC has contacted you, follow the below steps.

• Ask them to verify the debt: By the time the company has purchased your debt, there is a chance that it has changed hands several times. Mistakes can be made, and they often are. Paperwork also gets lost along the way, which can also result in a mistake and the company’s inability to prove that the debt is yours.
• Removal from your credit report: If the company cannot prove the debt is yours, you have the right to demand that they remove it from your credit report. If Portfolio Recovery Associates does not do this, you can open a case with the three major credit reporting bureaus, who have an obligation to start an investigation.
• Pay the debt: If the debt is yours and Portfolio Recovery Associates does prove it, you have two choices. You can pay the debt in full, or you can negotiate for a lower amount. Portfolio Recovery Associates, LLC, will often enter into these negotiations willingly, as they would rather recover a portion of the debt rather than none at all.

It is always important to work with a debt defense lawyer if Portfolio Recovery Associates, LLC has contacted you. An attorney can provide the necessary defense in your case, and enter into settlement negotiations on your behalf.

Call Our Debt Defense Lawyers in Florida Today

If you are being harassed or threatened by Portfolio Recovery Associates, LLC, our Florida debt defense lawyers at Loan Lawyers can provide the legal advice you need. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to learn more about how we can help.

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Seven Times You Should Avoid Using Your Credit Card

Credit card debt in the United States has reached an all-time high. As of May 2021, credit card debt has reached nearly $1 trillion, the highest ever in American history.  Clearly, people are using their credit cards more these days and for many, the burden of the debt becomes too great to bear. They then find themselves facing harassing phone calls from debt collectors, and they may even have a lawsuit filed against them.

To avoid these consequences, it is important to remember that just because you have credit available, and just because you see something they would like to buy, does not mean you should whip out your card and rack up debt. There are times when it is better to leave your card in your wallet, or at home, instead. Below are seven times when you should avoid using your credit card.

You Cannot Afford to Pay Off the Balance

Most importantly, you should never use your credit card if you cannot afford to pay the full balance when it is due. Essentially, if you do not have the cash available to make a purchase, you should not use your credit card, either. Doing so will cause you to incur late fees and interest, which will only add to your overall debt and make it harder to repay. Allowing a large balance to accumulate on your credit card will also lower your credit score, as the creditor will report the unpaid debt to the major credit bureaus, such as TransUnion.

Additionally, if you use your credit card knowing that you cannot repay the debt, you could technically be charged with fraud. Some creditors claim you acted fraudulently so that the debt cannot be discharged if you file bankruptcy. Never use your credit card if you know you cannot afford to take on additional debt.

You Do Not Know How Much Credit is Available

Decades ago, it was not uncommon for borrowers to opt into over-the-limit protection but since the CARD Act of 2009 was passed, fewer are. It is actually better to opt-out of this protection because if you try to make a purchase that would put you over the limit, the transaction is simply declined and you will not incur any additional fees or expenses.

However, if you have opted in for the over-the-limit protection, the creditor will allow the transaction to take place, even if it puts you over your credit limit. In exchange, they will charge you a hefty fee that will only add to your balance and make it more difficult to repay a debt. You could also trigger a higher interest rate if you go over your credit limit, and maxing out your credit card will also negatively affect your credit score.

Always make sure you know how much credit you have available before using your card. Today it is very easy to do, as most creditors will have an app that allows you to check your limit very quickly.

You are Applying for a Mortgage

Mortgage lenders will look at a number of things when you are applying for a loan. They will consider your credit utilization, which is the percentage of the credit card balance you are using. They will also look at your debt-to-income ratio, which is how much of your income you need to repay any debt you are carrying. If you carry a high credit card balance, it means you have to pay more every month to repay the debt, which increases your debt-to-income ratio.

Do not make big purchases when you are getting ready to apply for a mortgage. Instead, wait until at least after the closing process is complete so any new debt will not affect your application. Even better, wait a few months until after the closing process so you can get accustomed to paying your mortgage, and any upkeep expenses.

You Just Want to Feel Better

Sometimes when a person has had a bad day or has just been feeling blue for a little while, they will go shopping to make themselves feel better. As long as this does not end up becoming a temporary fix for larger problems, there is no problem with this, unless you are using a credit card to do it. Splurging on yourself once in a while is okay, but you do have to make sure you can afford to repay the balance at the end of the month. If you turn to shopping every time you feel down, start looking for healthier ways to feel better, such as journaling, exercising, or gardening.

You are Already in Debt

The simplest rule for using your credit card is that you should not if you are already in debt. Adding debt on top of debt is a surefire way to get in over your head. If you do not know about all of your debt, take out all of your statements, add up the total debt, and develop a strategy for paying it off.

When You are Intoxicated

You are more likely to make bad decisions when you are intoxicated and not thinking clearly. If you plan on going out for drinks with friends, carry cash on you to ensure you do not get in over your head. And if you are having a few drinks at home, resist the urge to shop online.

You Do Not Trust a Person or Device

Credit card skimming is a real problem and largely occurs at gas pumps and ATMs. Sometimes, a person that is given a credit card, such as a restaurant server or store clerk, may also pass a credit card through a skimming device in what would otherwise be a legitimate transaction. You will not ultimately be responsible for these charges, but they are a pain to deal with. If you ever do not trust a person or device, do not use your credit card and use cash instead.

Call Our Debt Defense Lawyer in Broward County if a Lawsuit has Been Filed

It is all too easy to get in over your head with debt and when that is the case, you need the help of a Broward County debt defense lawyer. At Loan Lawyers, our skilled attorneys will defend against these lawsuits to give you the best chance of a positive outcome. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

People Also Ask

• When should you not use a credit card?
• What should you avoid when using a credit card?
• Is it bad to use my credit card a lot?
• When should you stop using your credit card?

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How Much Does Foreclosure Cost in Broward County?

You have enough on your plate if you are facing foreclosure. You are behind several months on your mortgage and you may loss your home. As if all of that was not distressing enough, a foreclosure may also cost you extra money in fees, deficiency judgments, and more.

These additional costs will make it even more difficult for you to pay your mortgage and get your life back on track financially. While unpleasant to think about, you will not be able to get around paying these extra fees, as they are outlined in your mortgage contract. A foreclosure defense lawyer in Broward County can give you the best chance of avoiding these fees, and of keeping your home.

Fees in Foreclosure

You will face many different fees when facing foreclosure. These include:

• Title search fee: Once you start missing mortgage payments, the servicer will conduct a title search to ensure there are no other encumbrances on the property, such as a construction or mechanic lien. Any encumbrance on your property will have to be dealt with before possession can occur. The title search fee can cost hundreds of dollars.
• Attorney fees: You should always work with an attorney when you are facing foreclosure and unfortunately, they do have to charge fees for their services. However, you should find a lawyer that will offer a free consultation so they can review your case and outline some of your legal options. The cost of your attorney will depend on the complexity of your case, and the defenses that may be presented at trial. You will also have to pay the attorney fees of your lender if you are unsuccessful with your case. All of these fees can add up to thousands of dollars.
• Pre-acceleration late fee: Once the note has been accelerated, which means the servicer has demanded the loan be paid in full, the servicer is not allowed to assess late charges. Before the note is accelerated though, the servicer can charge you and that can cost hundreds of dollars.
• Private process server fee: Florida is a judicial foreclosure state, which means before the lender can repossess your home, they must file a lawsuit in civil court. When your lender files the lawsuit, they will have to serve you with the summons and complaint, and you will have to pay for that service. The cost is usually just under $100.

The Cost of Preserving the Property

Once your lender serves you with the foreclosure, they will inspect the property to determine its condition, and take steps to protect it and ensure it is properly maintained. They do this because they will have to sell the property once the foreclosure is over to recover the mortgage debt you took on and did not pay.

As the lender inspects the property, they will likely start by trying to determine if the home is occupied. Sometimes, when people are behind on their mortgage payments and know the home will foreclose, they simply walk away. These cases are known as zombie foreclosures. Even if you have walked away from your home, you will still be charged for the inspection and for any repairs that have to be done.

You will probably incur even more fees if you have already vacated the home. For example, the lender may have to set up lawn maintenance services, trash removal, and will likely have the locks replaced. These are just a few of the services the lender may have to make sure the home has, and you will pay for them. It is recommended that you do not just leave the property, even if you are facing foreclosure. Remaining in the property will not only result in lower property preservation costs, but it will also allow you to prepare a defense that may allow you to keep your home.

Can You Avoid Fees in Foreclosure?

If your lender has improperly assessed a fee, you may be able to get it removed from the amount you owe at the end. A foreclosure defense lawyer in Broward County will look at the fees to determine if they are valid, or if removal is necessary. If the fees were properly assessed, there is likely nothing you can do about them and you will have to eventually pay for them.

Deficiency Judgments

Sometimes, homeowners are responsible for paying a deficiency judgment after the foreclosure process. This most often happens after a short sale. If your home is sold during a short sale, it will sell for less than the full amount you still owe on the loan. As such, the lender will not recover the full amount they loaned you when you first took out the mortgage.

The lender will still want to recover the debt you owe and so, they may petition the court to get a deficiency judgment against you. If they are successful, the judge will issue the deficiency judgment and you will be responsible for the amount.

A foreclosure defense lawyer in Broward County can draft an agreement between you and the lender in which the lender waives their right to pursue a deficiency judgment against you. Lenders will sometimes also pursue a deficiency judgment if they have agreed to a deed-in-lieu of foreclosure, so it is important to work with a lawyer that can advise you of your legal options, and protect your rights.

Our Foreclosure Defense Lawyers in Broward County Can Provide Sound Legal Advice

Facing foreclosure is one of the most stressful things a person could go through, but you do not have to go through it alone. At Loan Lawyers, our Broward County foreclosure defense lawyers can advise on your case and protect your best interests, so you face as few consequences as possible. Call us today at 954-523-4357 or fill out our online form to schedule a free consultation with one of our knowledgeable attorneys and to learn more about how we can help with your case.

People Also Ask

• Are foreclosures going up in Florida?
• How much does it cost to foreclose?
• How are foreclosure fees calculated?
• Are foreclosure fees mandatory?

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Top Ten Ways to Avoid Credit Card Debt in Fort Lauderdale

Americans are carrying more and more credit card debt every year and for many, the burden is too great to bear. With so many more people taking on this debt every year, it also means more lawsuits are being filed every year by creditors and debt collectors against borrowers. For many people, the judgments issued in these lawsuits are devastating and for some borrowers, the only way out is to file bankruptcy.

Bankruptcy is a good option for those that are carrying too much debt, but it should only be used as a last resort, as this option also comes with some consequences. The best way to avoid a debt lawsuit is to simply not incur too much credit card debt in the first place. While this may sound difficult, our Fort Lauderdale debt defense lawyer offers some simple tips that can make it easier.

Create a Safety Net

The best safety net you can have is an emergency savings account you can tap into in the event that unexpected expenses come up, such as major car repairs or medical bills. Ideally, your emergency savings account should have enough to cover six months of living expenses. However, everyone has to start somewhere so even if you only start with $500 or $1,000 in your emergency savings, this can still be enough to provide for those expenses without using a credit card.

Only Purchase What You Can Really Afford

Many people think they can afford to make a purchase on their credit card because they can repay it over time. Unfortunately, if you have to do this, it means you cannot afford the purchase. Rationalizing that you can make payments over time to repay the debt is essentially just giving away your future income. So, how do you know if you can really afford to make a purchase on your credit card? Determine if you have enough cash, either on you or in the bank, to buy the item. If you do, you can likely afford it and can use your credit card for the purchase.

Do Not Make Unnecessary Balance Transfers

Sometimes, it makes sense to transfer a balance from a credit card with a high interest rate to one that has a lower interest rate. After all, you will pay less in interest, reducing the amount of overall debt you have to pay.

However, you have to be careful when making balance transfers. For example, if you simply want to beat the credit system and you transfer a payment to avoid a payment due date, this strategy could backfire. Transferring balances repeatedly while you avoid paying a substantial portion of the debt will lead to a balance that continues to increase on the card you transfer the balance to, particularly after the balance transfer fee is added.

Make All Payments on Time

To avoid credit card debt, you may stay on track with all of your credit card payments. If you do not make even one payment, the next payment due is going to be much higher, as it will constitute the payment you missed, the new payment, and any late fees you incurred. This makes it incredibly hard to catch up, and it will also place a strain on your budget. Once you are in this position, you will have to rely on your credit cards even more, putting you further into the hole.

Pay Off Your Full Balance Every Month

This is probably the number one piece of advice given to those that are trying to avoid credit card debt. However, it bears repeating any time you are considering how to lower your payments and get yourself out of debt. If you have a zero balance at the beginning of every month, you will never have to worry about getting in over your head with credit card debt.

Identify when You are in Over Your Head

If you are regularly spending more than you earn, have received default notifications, or you have used one credit card to pay for another, you are likely in over your head financially. To avoid falling even deeper into debt, you should recognize the signs that you are in over your head so you can take action as soon as possible.

Do Not Take Out Cash Advances

Using a credit card is always expensive, but there are some ways of using it that are more expensive than others. One of these is by taking out a cash advance. If you use your credit card to take out cash, the creditor will likely start charging you interest from the day you take out the cash, instead of at the end of the month, as they usually do.

Do Not Let Anyone Use Your Card

This one may seem like common sense, but you should never let anyone else use your credit card. While your intentions may be good, you will still be responsible for the debt they incur, even if they refuse to repay you.

Know the Terms of Your Agreement

The best way to understand the interest rate you will pay, the fees the creditor will charge, and more, you must understand the terms of your agreement. Simply by knowing these terms, you will know more about your credit card, and how to avoid using it so you do not get too deep into debt.

Limit the Number of Cards You Carry

Simply put, the more cards you carry, the greater chance there is that you will get too far into debt. Generally speaking, you should only carry a maximum of three credit cards. This will give you two to carry on you, and one to keep in a safe place in case of emergency.

Call Our Debt Defense Lawyers in Fort Lauderdale

There are many tips you can use to avoid credit card debt but unfortunately, they do not always work. When that is the case, our Fort Lauderdale debt defense lawyers at Loan Lawyers can help. We know the strategies that will give you the best chance of a successful outcome and will protect your interests at all times. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

People Also Ask:

• What is the most effective way to avoid excessive credit card debt?
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What Happens to Tenants When a Property Forecloses in Broward County?

As moratoriums on foreclosures and evictions have expired, more property owners are going to face foreclosure in the coming months. Many of those property owners are landlords, and the buildings they own are rental properties. Often, the tenants inside those properties have continued paying their rent on time, and think they should not have to face consequences brought on by something that was not their fault. So, what happens to tenants when a property forecloses in Broward County?

Protecting Tenants at Foreclosure Act of 2009

Prior to 2009, if a rental property was foreclosed and tenants lived within it, the new owner could evict both property owners and tenants when they took over ownership of the home. The foreclosure automatically terminated the lease and evicted any tenants, who were also not given a great deal of time to leave the premises. In most instances, the eviction came as a complete shock to renters because they had no idea the landlord was not paying the mortgage. Fortunately, Congress passed the Protecting Tenants at Foreclosure Act of 2009, which now provides much greater protections for tenants.

Under the Act, anyone that purchases a property at a foreclosure sale is required to give tenants 90 days notice to vacate the property. However, this requirement is only in place if the new owner intends to live within the property themselves. If the new owner is not going to move into the property and live there on their own, they must allow the tenant to continue living in the property for the remainder of their lease. If the tenants do not have a lease, the new owner must provide them with 90 days notice to vacate the property.

The Act has undergone many transformations since the time it was enacted. The Act initially contained a sunset provision, which meant it would automatically expire in 2012 unless Congress renewed it. Since that time the Act has been renewed, and many changes have been made to it, although the above provisions and protections still stand. In 2018, the Trump Administration made the Act permanent.

Exceptions Under the Law

Although the law does provide greater protections for tenants than it once did, there are some exceptions under the law. If the borrower is still residing within the home, they are not granted any protections under the law. Also, if the rent a tenant is paying is deemed to be “substantially lower than fair market value for their living space,” can be evicted without the proper notice that is typically required under the law.

Still, what is considered “substantially lower” is not defined under the law. Instead, it is left entirely to the judge’s discretion. As such, tenants can argue that their rent is not substantially lower than fair market value. The law does protect low-income tenants that pay lower than market value because they rely on certain government programs.

Do Tenants Still Have to Pay Rent During Foreclosure?

Losing your home is very upsetting, whether you are a property owner that is being foreclosed on, or a tenant that is losing their home due to eviction or foreclosure. Some people become so upset that they want to retaliate against the landlord by not paying rent. Others believe they are not obligated to pay rent if the landlord is not using it to pay the mortgage on the property. Unfortunately, this is not true.

Until the foreclosure is final, the landlord still technically owns the property. As a result, if you stop paying rent for any reason, your landlord will still have the right to evict you. Landlords are not required to use rental income for paying the mortgage on the property and so, you cannot stop paying rent and use this as a defense.

If you live in a multi-family dwelling, such as in an apartment building, the mortgage on the property likely includes an assignment of rents clause in the home loan contract. Under this clause, the lender is allowed to collect rents directly from tenants any time a landlord stops paying the mortgage on the property. Lenders must provide tenants with adequate notice that they will be collecting the rent instead of the landlord.

What Happens to the Security Deposit if a Rental Property Forecloses?

When a landlord’s rental property goes into foreclosure, it is typically because they have fallen on hard times financially. As a result, if you have paid a security deposit, you may fear that you will never get it back, even if you have paid your rent in a timely manner and kept the property in good condition. You may already assume that your landlord simply cannot afford to give your security deposit back to you.

Under the law, your landlord is required to return your security deposit to you, even if the property is lost in foreclosure. However, because landlords often cannot financially afford this, the only recourse you likely have if your landlord refuses is to file a lawsuit against them in small claims court.

Speaking to Your Landlord

Again, many tenants do not even know their landlord has fallen onto hard financial times and so, the foreclosure comes as a shock. Once you learn of the foreclosure, it is important to speak to your landlord so you can learn what they intend to do about it. Just because a lender has started the foreclosure process does not mean your landlord will lose the home, as there are many defenses available. Speak to your landlord and ask if they are going to allow the foreclosure to continue so you can start making plans in case you do have to find a new place to live.

Call Our Foreclosure Defense Lawyers in Broward County Today

If your landlord or a new owner has not upheld your rights, or you are facing foreclosure, our Broward County foreclosure defense lawyers at Loan Lawyers can help. We will always protect your best interests and advise you of the legal strategies that will give you the best chance of a positive outcome. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to obtain the legal advice you need.

People Also Ask:

• What happens to tenants when a property is foreclosed in Florida?
• Do I still have to pay rent if the house is in foreclosure in Florida?
• What happens to tenants during a foreclosure?
• How do you evict an owner after foreclosure?

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Top Ten Ways to Avoid Credit Card Debt in Fort Lauderdale

Americans are carrying more and more credit card debt every year and for many, the burden is too great to bear. With so many more people taking on this debt every year, it also means more lawsuits are being filed every year by creditors and debt collectors against borrowers. For many people, the judgments issued in these lawsuits are devastating and for some borrowers, the only way out is to file bankruptcy.

Bankruptcy is a good option for those that are carrying too much debt, but it should only be used as a last resort, as this option also comes with some consequences. The best way to avoid a debt lawsuit is to simply not incur too much credit card debt in the first place. While this may sound difficult, our Fort Lauderdale debt defense lawyer offers some simple tips that can make it easier.

Create a Safety Net

The best safety net you can have is an emergency savings account you can tap into in the event that unexpected expenses come up, such as major car repairs or medical bills. Ideally, your emergency savings account should have enough to cover six months of living expenses. However, everyone has to start somewhere so even if you only start with $500 or $1,000 in your emergency savings, this can still be enough to provide for those expenses without using a credit card.

Only Purchase What You Can Really Afford

Many people think they can afford to make a purchase on their credit card because they can repay it over time. Unfortunately, if you have to do this, it means you cannot afford the purchase. Rationalizing that you can make payments over time to repay the debt is essentially just giving away your future income. So, how do you know if you can really afford to make a purchase on your credit card? Determine if you have enough cash, either on you or in the bank, to buy the item. If you do, you can likely afford it and can use your credit card for the purchase.

Do Not Make Unnecessary Balance Transfers

Sometimes, it makes sense to transfer a balance from a credit card with a high-interest rate to one that has a lower interest rate. After all, you will pay less in interest, reducing the amount of overall debt you have to pay.

However, you have to be careful when making balance transfers. For example, if you simply want to beat the credit system and you transfer a payment to avoid a payment due date, this strategy could backfire. Transferring balances repeatedly while you avoid paying a substantial portion of the debt will lead to a balance that continues to increase on the card you transfer the balance to, particularly after the balance transfer fee is added.

Make All Payments on Time

To avoid credit card debt, you may stay on track with all of your credit card payments. If you do not make even one payment, the next payment due is going to be much higher, as it will constitute the payment you missed, the new payment, and any late fees you incurred. This makes it incredibly hard to catch up, and it will also place a strain on your budget. Once you are in this position, you will have to rely on your credit cards even more, putting you further into the hole.

Pay Off Your Full Balance Every Month

This is probably the number one piece of advice given to those that are trying to avoid credit card debt. However, it bears repeating any time you are considering how to lower your payments and get yourself out of debt. If you have a zero balance at the beginning of every month, you will never have to worry about getting in over your head with credit card debt.

Identify when You are in Over Your Head

If you are regularly spending more than you earn, have received default notifications, or you have used one credit card to pay for another, you are likely in over your head financially. To avoid falling even deeper into debt, you should recognize the signs that you are in over your head so you can take action as soon as possible.

Do Not Take Out Cash Advances

Using a credit card is always expensive, but there are some ways of using it that are more expensive than others. One of these is by taking out a cash advance. If you use your credit card to take out cash, the creditor will likely start charging you interest from the day you take out the cash, instead of at the end of the month, as they usually do.

Do Not Let Anyone Use Your Card

This one may seem like common sense, but you should never let anyone else use your credit card. While your intentions may be good, you will still be responsible for the debt they incur, even if they refuse to repay you.

Know the Terms of Your Agreement

The best way to understand the interest rate you will pay, the fees the creditor will charge, and more, you must understand the terms of your agreement. Simply by knowing these terms, you will know more about your credit card, and how to avoid using it so you do not get too deep into debt.

Limit the Number of Cards You Carry

Simply put, the more cards you carry, the greater chance there is that you will get too far into debt. Generally speaking, you should only carry a maximum of three credit cards. This will give you two to carry on you, and one to keep in a safe place in case of emergency.

Call Our Debt Defense Lawyers in Fort Lauderdale

There are many tips you can use to avoid credit card debt but unfortunately, they do not always work. When that is the case, our Fort Lauderdale debt defense lawyers at Loan Lawyers can help. We know the strategies that will give you the best chance of a successful outcome and will protect your interests at all times. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

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What Happens to Tenants When a Property Forecloses in Broward County?

As moratoriums on foreclosures and evictions have expired, more property owners are going to face foreclosure in the coming months. Many of those property owners are landlords, and the buildings they own are rental properties. Often, the tenants inside those properties have continued paying their rent on time, and think they should not have to face consequences brought on by something that was not their fault. So, what happens to tenants when a property forecloses in Broward County?

Protecting Tenants at Foreclosure Act of 2009

Prior to 2009, if a rental property was foreclosed and tenants lived within it, the new owner could evict both property owners and tenants when they took over ownership of the home. The foreclosure automatically terminated the lease and evicted any tenants, who were also not given a great deal of time to leave the premises. In most instances, the eviction came as a complete shock to renters because they had no idea the landlord was not paying the mortgage. Fortunately, Congress passed the Protecting Tenants at Foreclosure Act of 2009, which now provides much greater protections for tenants.

Under the Act, anyone that purchases a property at a foreclosure sale is required to give tenants 90 days notice to vacate the property. However, this requirement is only in place if the new owner intends to live within the property themselves. If the new owner is not going to move into the property and live there on their own, they must allow the tenant to continue living in the property for the remainder of their lease. If the tenants do not have a lease, the new owner must provide them with 90 days notice to vacate the property.

The Act has undergone many transformations since the time it was enacted. The Act initially contained a sunset provision, which meant it would automatically expire in 2012 unless Congress renewed it. Since that time the Act has been renewed, and many changes have been made to it, although the above provisions and protections still stand. In 2018, the Trump Administration made the Act permanent.

Exceptions Under the Law

Although the law does provide greater protections for tenants than it once did, there are some exceptions under the law. If the borrower is still residing within the home, they are not granted any protection under the law. Also, if the rent a tenant is paying is deemed to be “substantially lower than fair market value for their living space,” can be evicted without the proper notice that is typically required under the law.

Still, what is considered “substantially lower” is not defined under the law. Instead, it is left entirely to the judge’s discretion. As such, tenants can argue that their rent is not substantially lower than fair market value. The law does protect low-income tenants that pay lower than market value because they rely on certain government programs.

Do Tenants Still Have to Pay Rent During Foreclosure?

Losing your home is very upsetting, whether you are a property owner that is being foreclosed on, or a tenant that is losing their home due to eviction or foreclosure. Some people become so upset that they want to retaliate against the landlord by not paying rent. Others believe they are not obligated to pay rent if the landlord is not using it to pay the mortgage on the property. Unfortunately, this is not true.

Until the foreclosure is final, the landlord still technically owns the property. As a result, if you stop paying rent for any reason, your landlord will still have the right to evict you. Landlords are not required to use rental income for paying the mortgage on the property and so, you cannot stop paying rent and use this as a defense.

If you live in a multi-family dwelling, such as in an apartment building, the mortgage on the property likely includes an assignment of rents clause in the home loan contract. Under this clause, the lender is allowed to collect rents directly from tenants any time a landlord stops paying the mortgage on the property. Lenders must provide tenants with adequate notice that they will be collecting the rent instead of the landlord.

What Happens to the Security Deposit if a Rental Property Forecloses?

When a landlord’s rental property goes into foreclosure, it is typically because they have fallen on hard times financially. As a result, if you have paid a security deposit, you may fear that you will never get it back, even if you have paid your rent in a timely manner and kept the property in good condition. You may already assume that your landlord simply cannot afford to give your security deposit back to you.

Under the law, your landlord is required to return your security deposit to you, even if the property is lost in foreclosure. However, because landlords often cannot financially afford this, the only recourse you likely have if your landlord refuses is to file a lawsuit against them in small claims court.

Speaking to Your Landlord

Again, many tenants do not even know their landlord has fallen onto hard financial times and so, the foreclosure comes as a shock. Once you learn of the foreclosure, it is important to speak to your landlord so you can learn what they intend to do about it. Just because a lender has started the foreclosure process does not mean your landlord will lose the home, as there are many defenses available. Speak to your landlord and ask if they are going to allow the foreclosure to continue so you can start making plans in case you do have to find a new place to live.

Call Our Foreclosure Defense Lawyers in Broward County Today

If your landlord or a new owner has not upheld your rights, or you are facing foreclosure, our Broward County foreclosure defense lawyers at Loan Lawyers can help. We will always protect your best interests and advise you of the legal strategies that will give you the best chance of a positive outcome. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to obtain the legal advice you need.

People Also Ask

• What happens to tenants when a property is foreclosed in Florida?
• Do I still have to pay rent if the house is in foreclosure in Florida?
• How do you evict an owner after foreclosure?
• How do foreclosures work in Florida?

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How to Reduce Damage to Your Credit Report Due to Medical Bills

People get in over their heads with bills all the time. When it comes to the financial struggle these bills cause, they may not seem that unique from each other. One of the most common expenses that results in people struggling financially is medical bills. Although medical bills can place a financial strain on people, these costs are fairly different from others. If you have incurred high medical bills and are now wondering how to pay for them, or how they will affect your credit score, below is the information you need to know.

Medical Bills Do Not Affect Your Credit Right Away

Some creditors will report a late payment or non-payment right away, sometimes days within the bill being overdue. This is not the case with medical bills, though. The majority of health care providers will not report to the credit bureaus, so it is possible to carry a large balance or make late payments and not have them affect your credit score.

However, health care providers will send your unpaid bill to a debt collector, and that debt collector may report the unpaid balance to a credit bureau, such as TransUnion. Still, you will typically have at least 60 days before the balance is reported. Additionally, medical debt should not appear on your credit report until the balance is a minimum of 180 days past due. Debt collectors will still try to collect on the debt though, even before they have reported it to the credit bureau.

Make Sure the Medical Bill is Correct

You should always make sure any bill you receive is correct and that the creditor or company is asking for the right amount. Medical billing errors are extremely common, and those mistakes can cost you a great deal of money.

You may receive documentation from a health care provider that clearly states “This is not a bill” and be tempted to throw it away. Do not. These documents often itemize the procedures and medications you have received that your insurance company is being billed for. Always keep your bills and these itemized lists and cross-reference them with each other so you can ensure they are accurate.

If you are in the hospital, try and keep a record of any tests you have undergone or medication you have been given. If you cannot do this yourself, ask someone you know personally to do it for you. Compare your own notes to the invoice when it arrives. You may also be able to negotiate a payment plan or a discounted amount with the hospital billing office.

Consider Your Payment Method

You may want to use your credit card to pay off your medical bills, but this is not usually recommended. Medical bills have a great deal of protection for patients and if you transfer the amount owed from your medical bills to your credit card, you lose those protections. If you are expecting your insurance to cover a portion of the amount, or you believe you can negotiate a lower payment, you should try these avenues before you do anything else. After you have paid the bill, you no longer have any negotiating power.

On the other hand, if debt collectors have already started to call you trying to recover the debt, you may want to use a credit card to pay it. Once a debt collector starts calling, it means the protections no longer apply and the collections company will continue to contact you until the total amount is paid. If you pay the medical debt with a credit card, the calls from the collection agency will stop immediately. However, if you do use a credit card to pay your medical bills, always make sure you choose the one that has the lowest interest rate so you do not end up paying too much.

A Personal Loan Can Help You Pay Your Medical Debt

If you can get approved for a personal loan, this can be a very good option to repay medical debt. Personal loans typically have a much lower interest rate than credit cards and so, a personal loan could save you more money in the long run. A personal loan also will not have the drastic impact on your credit score as a credit card will.

Consider Bankruptcy

Bankruptcy should only be used as a last resort, but it can give you the chance at a clean slate if you find your medical bills impossible to pay. Many different types of debt can be discharged through bankruptcy, and that includes medical expenses. Additionally, if debt collectors have already started to contact you about the overdue debt, an automatic stay will be issued that will prevent debt collectors from making these calls. Bankruptcy will affect your credit score, but you can rebuild it over time.

Address the Issue

A drop in your credit score will not last forever, but it can have serious impacts for you.

Fortunately, there are some ways that can help you bounce back. These include:

• Pay your bills on time whenever possible. If that is not possible, you should contact your creditor right away to determine if there is an arrangement that can be made so your account is not reported to the credit bureaus.
• Using a credit card to recover medical debt will lower your credit utilization rate, which will cause your score to drop.
• Keep all credit card accounts open if at all possible. Closing them will only hurt your credit score.

Our Debt Defense Lawyer in Fort Lauderdale Can Help with a Lawsuit

If a medical provider or debt collector has already threatened legal action against you, our Fort Lauderdale debt defense lawyer at Loan Lawyers can help with your case. We have successfully defended hundreds of clients against these lawsuits, and we want to put our experience to work for you. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

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How to Use a Deed in Lieu of Foreclosure in Fort Lauderdale

While it may not seem like it, you have a lot of options when facing foreclosure, and a deed in lieu of foreclosure is one of them. A deed in lieu of foreclosure will allow you to avoid foreclosure, while still freeing yourself from the mortgage payments you are unable to afford. Instead of waiting for the lender to foreclose on your home, you simply sign off on the deed and voluntarily transfer ownership of the home to your lender. If you are facing foreclosure in Fort Lauderdale, it is important to know your options. Below are the basics of using a deed in lieu of foreclosure.

How Does a Deed in Lieu of Foreclosure Work?

If you want a deed in lieu of foreclosure, you will have to work with your mortgage lender to get it. Every lender sets out their own requirements for this so, you will need to ask them what their process is. You should explain that you are unable to make payments, but that you would like to avoid foreclosure.

While the process will vary lender by lender, there are some aspects of the process that are fairly common. These are as follows:

• Call your lender and ask to start the deed in lieu of foreclosure process. They may ask you to fill out an application, which may include providing details about your finances, including your budget and monthly payments.
• Gather important documentation that will help you prove your financial hardship to your lender. These documents may include pay stubs that show your income, utility bills and other invoices that show your monthly expenses, and bank account statements.
• Once you have spoken to your lender and asked about a deed in lieu of foreclosure, you have to be patient and give your lender time to respond. You will likely have to wait at least 30 days before hearing back from your lender, and perhaps even more. You can call to ask for a status update, but also be aware that you will likely have some waiting to do. Any time your lender asks you for additional information, provide it as quickly as possible to reduce the waiting time.
• If your deed in lieu of foreclosure is approved, you should speak to a foreclosure defense lawyer that can help you through the rest of the process. Ideally, you should speak to a lawyer even before you speak to your lender, as they can provide you with sound legal advice from the very beginning of your case. A lawyer can also try to shield you from a deficiency judgment, which could cost you thousands of dollars at a time when you can ill afford it.

Pros of a Deed-in-Lieu of Foreclosure

There are many pros of obtaining a deed in lieu of foreclosure. These include:

• You may qualify for relocation assistance: Moving is expensive, and you will face increased costs just to move out of your home, at a time when you are already experiencing financial trouble. However, by saving your lender from the hassle of a foreclosure, you are also saving them time and money. That may give the lender an incentive to provide you with up to $3,000 in moving expenses if you leave the home in a timely manner and leave it in a good condition.
• You may be able to purchase another home sooner: If you allow your home to foreclose, you may have to wait many, many years before you qualify to purchase another home. A deed-in-lieu of foreclosure though, stops a foreclosure from occurring. The deed-in-lieu of foreclosure will still remain on your credit report for up to seven years as a debt you owed and did not fully repay. Still, you may qualify to purchase a home sooner. If you want to qualify for a conventional mortgage through Fannie Mae, you may be eligible within two years of completing the deed-in-lieu.
• You can save money: If your lender forecloses on your home, they may also pursue a deficiency judgment, which would make you responsible for paying the difference between what is still owed on the loan and what was recovered at the short sale. With a deed-in-lieu of foreclosure, your lawyer can draft an agreement in which the lender waives their right to pursue a deficiency judgment.

While a deed-in-lieu will bring many benefits, there are also some potential downsides you should consider.

Cons of a Deed-in-Lieu of Foreclosure

A deed-in-lieu of foreclosure will save you from an actual foreclosure, but that does not mean you will walk away from your home free and clear.

There are some disadvantages a deed-in-lieu of foreclosure will bring, and they are as follows:

• You will lose your home: Although a deed-in-lieu of foreclosure will stop the foreclosure process, and many negative impacts that come along with it, the process will still result in you losing your home.
• There are tax implications: If the debt forgiven on your home totals more than $600, which is likely, that forgiven debt is treated as taxable income and you must report it within your tax return.
• Your credit will take a hit: A deed-in-lieu of foreclosure will not remain on your credit report as long as a foreclosure, but it will still show up on your report. That will make it more difficult for you to obtain a loan or any kind of credit in the future.

Call Our Debt Defense Lawyer in Fort Lauderdale Today

If you are facing foreclosure and want to learn more about deed-in-lieu of foreclosure, or other options, our Fort Lauderdale debt defense lawyers at Loan Lawyers are here to help. Call us today at (954) 523-4357 or contact us online to schedule a free consultation and to obtain the sound legal advice you need during this difficult time.

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