Does a Voluntary Repossession Affect Your Credit?

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

If you fall behind on your car payments and cannot catch up, you can give your car back to your lender. Lenders call this voluntary repossession, and it can potentially give you some financial breathing room. But before you turn your car over to the bank, you need to consider all the potential consequences. To learn more about voluntary repossession in Florida, contact a skilled car repossession lawyer at Loan Lawyers today.

Can Voluntary Repossession Have an Impact on Your Credit?

One reason many people consider voluntary repossession is to protect their credit score. Unfortunately, giving your car to your lender is unlikely to protect your credit. Many lenders consider a voluntary repossession the same as an involuntary repossession, leading to a negative mark on your credit report.

How Much Does a Voluntary Repossession Affect Your Credit?

Estimates vary, but you can expect a voluntary repossession to lower your credit score by 50-150 points. How big of a drop you will see depends on factors such as your prior credit history and how many payments you made before the repossession. A large drop in your credit score can severely impact your ability to obtain future loans for a car, home, or other large purchases. Some lenders may not give you credit after your score drops, or you may have to accept a loan with a high-interest rate.

How Long Does a Voluntary Repossession Stay On Your Credit?

According to Experian, one of the three main credit reporting agencies, a voluntary repossession is considered a loan default. Loan defaults lead to derogatory marks on your credit report that can last up to seven years. You may be able to remove a derogatory mark from your credit report by paying the balance you still owe on your loan or working out an arrangement with your lender.

Pros and Cons of Voluntary Repossession

There are pros and cons to surrendering your car to your lender if you fall behind on your payments. The benefits of voluntary repossession include the following:

• A better repossession experience — Involuntary repossessions upset many people because they often happen at inconvenient times. A voluntary repossession allows you to choose when you turn over your car, giving you time to make plans.
• Lower repossession expenses — If a lender repossesses your car, you may owe additional fees on top of your loan balance. Voluntarily turning over your car means you do not have to pay repossession costs.
• Less stress on you — For better or worse, turning over your car to your lender means you do not have to worry about the car any longer. You may still owe a balance and have other problems to worry about. But you do not have to worry about maintaining your car or when the bank will take it.

Some negative effects of voluntary repossession of a car include the following:

• Lower credit score — You will likely see your credit score drop after you give your car to your lender, which could impact your financial future.
• You may still owe a balance on your loan — You might need to pay back your lender even after giving them your car, though typically just the remaining balance not covered by the car’s resale. An outstanding loan balance can cause significant financial stress.
• You no longer have your car — You may have ways to get where you need to go after surrendering your car. But these options will likely be less convenient than driving yourself.

Talk to an Experienced Car Repossession Lawyer in Florida Today

The Florida foreclosure defense, debt defense, and bankruptcy attorneys at Loan Lawyers can help you decide whether to voluntarily repossess your car. We will protect your rights and help you find the best way forward from this challenging situation. Call us today or visit our contact page for a free consultation.

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Can a Loan Modification Stop Foreclosure?

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss, and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

Homeowners who can no longer afford their mortgage payments have options for stopping foreclosure and keeping their homes. Depending on the circumstances, a homeowner may consider applying for a loan modification with their lender to avoid or stop a mortgage foreclosure. But how exactly does a loan modification prevent a homeowner from losing their property to foreclosure? Learn from our Florida loan modification attorneys below.

What Is Loan Modification?

In a loan modification, a lender and borrower agree to change the terms of a loan. Loan modification often happens when a borrower can no longer afford payments under the loan’s current terms. Altering the terms of the loan can provide temporary relief from payments or reduce the monthly payment amount to a more affordable level.

Examples of terms that can be modified include:

• Modifying the type of loan, such as changing from an adjustable-rate mortgage to a fixed-rate mortgage
• Reducing the interest rate
• Extending the loan term
• Pausing payments for a certain period
• Recapitalizing the loan to fold in missed payments
• Reducing the amount owed on the loan, typically by having the lender agree to forgive a portion of the balance

Who Can Use Loan Modification?

Loan modification frequently is used by homeowners who can no longer make their mortgage payments. A homeowner who has defaulted on their mortgage may use loan modification to avoid foreclosure. Lenders tend to grant loan modification to borrowers who have suffered some form of financial hardship but will resume making payments soon or can afford lower payments.

Circumstances where borrowers may seek loan modification include:

• Loss of a job with a reasonable chance of securing new employment soon
• Sudden illness or temporary disability that results in missed time from work or substantial medical bills
• Loss of income due to the death of a financially contributing family member
• Separation or divorce
• Increases in housing or living costs, such as an increase in property taxes

Advantages and Disadvantages of Loan Modification

The advantages of seeking loan modification during foreclosure include the following:

• You can keep your home by pausing payments if you experience temporary financial difficulty or reducing mortgage payments to a more affordable level.
• Loan modification can help you resolve missed payments or a default on your mortgage.
• You may avoid damage to your credit rating that foreclosure would cause.

However, there are disadvantages of loan modification as a way to stop foreclosure, such as the following:

• Most types of loan modification result in you paying more money throughout the loan than you would under the original terms.
• You may have to pay fees as part of the loan modification process.
• You can incur tax liability if the lender forgives part of the mortgage.
• There may be an impact on your credit score if the loan modification is reported to the credit bureaus as a debt settlement.

Talk to an Experienced Foreclosure Defense Lawyer About Modifying Your Loan

If you are facing mortgage foreclosure, a skilled foreclosure defense lawyer can help you learn more about how options such as loan modification can help you keep your home. Contact Loan Lawyers today for a free, confidential consultation with our foreclosure defense, debt defense, and bankruptcy law firm to discuss how we can help you find the best solution to resolve your foreclosure.

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Difference Between Debt Consolidation and Debt Settlement

Loan Lawyers, LLC is licensed to practice law in Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please get in touch with your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

If you are struggling to pay off debt, you may have heard about debt consolidation and debt settlement — two financial strategies to manage your debt. While these methods may sound similar, they function differently and are often used to resolve specific issues. 

Contact Loan Lawyers for a free consultation with a debt defense lawyer to learn more about debt consolidation vs. debt settlement.

What Is the Difference Between Debt Consolidation and Debt Settlement?

There are a few key differences between these two methods of debt management. First, debt consolidation combines debts from multiple creditors into a single debt that may have a better interest rate and more manageable terms for the debtor. Debt can be consolidated through a balance-transfer credit card, personal loan, home equity loan, or debt consolidation loan. This method may offer advantageous terms, such as a lower interest rate that allows the debtor to save money. It can also help the debtor pay off debt sooner and reduce the payments they must make.

Debt settlement involves purposefully withholding payment from a creditor for a period, typically two or three years. The debtor then attempts to settle the debt with a much lower lump-sum amount. They may try to negotiate debt resettlement or hire a for-profit company to help. However, it can be risky in either case.

Pros and Cons of Debt Consolidation vs. Debt Settlement

There are advantages and disadvantages to each debt management strategy. The pros of debt consolidation are:

• Fewer payments to manage
• Lower monthly payments due to a lower interest rate or extended payment schedule
• Credit may improve if the credit utilization ratio is reduced

The cons of debt consolidation include the following: 

• Original debt is not eliminated but extended over time
• Bad credit may prevent a debtor from getting a lower interest rate 
• There may be fees involved
• The pros of debt settlement are:
• Opportunity to settle for a much lower amount, saving significant money
• Possibility to settle relatively quickly

However, there are cons of debt settlement, such as: 

• No guarantee that a creditor will agree to settle
• Accrual of late fees and interest charges while payments are being withheld 
• Potential damage to a debtor’s credit score
• Possibility of being scammed by debt settlement companies

Debt Consolidation vs. Debt Settlement: Which Is Better for You?

You should consider several factors when determining which financial strategy is better for you. The main issues to take into account include the following: 

• How much debt do you owe
• Whether you are delinquent and, if so, how far behind you are
• Your credit score
• Your ideal timeline for paying down debt

An experienced debt relief attorney can evaluate your financial situation, explain your options, and help you choose the best strategy for your case. 

Contact Loan Lawyers Today for a Free Consultation

If you struggle to manage your debt, contact Loan Lawyers today for a free consultation. Our foreclosure defense, debt defense, and bankruptcy law firm can help you find the best solution for your case. We work directly with each client on a personalized, detailed approach to solving debt problems.

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HOA Foreclosure vs. Bank Foreclosure

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

The word “foreclosure” understandably triggers fear and anxiety in most homeowners. As a homeowner, you should understand how one initiated by a homeowner association (HOA) differs from traditional bank foreclosure.

The team at Loan Lawyers wants to provide homeowners facing foreclosure with practical and straightforward information about the process of homeowner association foreclosures. To learn more, contact Loan Lawyers today for a free consultation.

Why Do HOA and Bank Foreclosures Happen?

Foreclosure occurs when a lender takes back property from a borrower who can no longer make mortgage payments. When someone cannot afford to pay their mortgage, the lender is not getting back the money on the loan they provided. If the lender can foreclose on the property, it can take ownership of the house and sell it to recover money.

Under federal law, a homeowner must generally be more than 120 days past due on their mortgage payments before a lender can file for foreclosure. However, the homeowner’s HOA can begin foreclosure if they stop paying HOA fees.

What Are the Main Differences Between an HOA Foreclosure and Bank Foreclosure?

There are distinct differences between an HOA foreclosure and a bank foreclosure. A bank foreclosure typically occurs when a homeowner fails to make monthly mortgage payments. After 120 days, a lender may begin foreclosure to take ownership of the property and sell it to recover losses.

HOA foreclosures are different because they involve a homeowner association. An HOA collects dues or fees from homeowners to maintain communal areas like parks, lawns, and pools. If a homeowner fails to pay these fees, an HOA can choose to recover what it is owed by placing a lien on the home. A lien prevents the homeowner from selling or refinancing the property.

The HOA can take steps to begin the foreclosure process. However, HOA auctions only seek to sell the property for enough money to recover the outstanding lien. An HOA foreclosure has nothing to do with a homeowner’s mortgage. When someone buys an HOA foreclosure, they may be surprised to find an outstanding mortgage is still attached to the property.

What Should I Do After Being Served with a Foreclosure Lawsuit?

If you have been served with a foreclosure lawsuit, you should immediately contact an experienced attorney who can advise you on your options. A foreclosure defense lawyer can find a solution that works for you and your lender or HOA. Navigating the foreclosure process alone rarely works out in a homeowner’s favor, so hiring an attorney is in your best interest.

Contact the Consumer Debt Defense Attorneys at Loan Lawyers for Help

Loan Lawyers is a foreclosure defense, debt defense, and bankruptcy law firm committed to protecting clients’ rights. If you are being foreclosed on, contact the consumer debt defense attorneys at Loan Lawyers today for a free consultation.

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Legal Rights Before a Foreclosure

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

If you are facing foreclosure in Florida, you might be feeling overwhelmed and wondering what to do next. The Florida foreclosure attorneys at Loan Lawyers can help you understand your options and establish a strong legal strategy to defend your mortgage rights and home. To learn more about your homeowner rights in foreclosure, contact Loan Lawyers today for a free consultation.

Breach Letter

During the pre-foreclosure stage in Florida, your lender must send you a notice known as a breach letter. This notice is meant to inform you that you are past due on your mortgage payments and the lender will begin foreclosure if you don’t correct the default. Breach letters should also contain information about your various options for avoiding foreclosure.

Notice of the Foreclosure

Homeowners in Florida are also entitled to notice of a pending foreclosure if they cannot correct the default. Florida is a judicial foreclosure state, which means lenders must get court approval before beginning foreclosure proceedings. If your lender gets approval from the court for judicial foreclosure, your notice should come in the form of an official complaint and court summons in the mail.

After your lender starts a judicial foreclosure in Florida, you have 20 days to file a response in court. If you do not respond by the deadline, your lender might ask the court to grant a default judgment. A default judgment would allow your lender to proceed with the foreclosure of your home.

Reinstating Your Mortgage

Most Florida home mortgages have conditions allowing borrowers to reinstate their mortgages. This lets borrowers stop the foreclosure by paying off all past-due amounts and fees. Many mortgage contracts allow borrowers to reinstate their mortgages until a specific deadline, usually when the court renders a judgment.

After a successful reinstatement, the lender stops foreclosure proceedings. The borrower then resumes their regular mortgage payments.

Redeeming Your Home

Another way to save your home from foreclosure is by redeeming the property, which is different from reinstating a mortgage. When you redeem a home, you must pay off the entire mortgage and any late fees or interest you owe your lender.

As you might imagine, few homeowners who default on their mortgages have the financial ability to pay off their debts all at once. If redeeming your home is an option, remember that you must redeem the home before your court-ordered foreclosure redemption period expires or your lender files a certificate of sale.

Contact the Foreclosure Defense Attorneys at Loan Lawyers

You shouldn’t have to defend your homeowner rights on your own. If you want to challenge your foreclosure, contact the foreclosure defense team at Loan Lawyers today. We can address your concerns and review your case for free when you contact us for an initial consultation session.

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What Is Zombie Debt and How Do You Deal With It?

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

One of the most stressful things about being in debt is how long it can impact your life. Sometimes, a debt may be so old that your creditors can no longer collect on it. That does not mean unethical collectors won’t try to collect on this debt, though, putting you in a difficult situation.

The rise of this “zombie debt” is a growing problem in Florida. But the foreclosure defense, debt defense, and bankruptcy attorneys at Loan Lawyers can help if someone is trying to collect on these debts. Contact our office for a free consultation to learn more.

What Is a Zombie Debt?

“Zombie debt” is a term for debt that is old or you no longer owe. These debts may have been previously discharged in bankruptcy or are so old that your creditors can no longer take action against you. However, people sometimes buy these debts and try to collect on them, using scare tactics or intimidation to force debtors to pay up when they no longer owe anything.

There are a few common types of zombie debts that debt scavengers will try to collect on, such as:

• Expired debts – When you owe money to your creditors, they have a limited window to take legal action if you fail to pay back the debt. If the statute of limitations on a zombie debt has expired, you no longer have to pay them back.
• Debts discharged in bankruptcy – The point of bankruptcy is to clear away your debts and give you a fresh financial start. You do not have to pay debts discharged in bankruptcy.
• Debts that were not yours – Even in this age of electronic records and databases, it is possible for your debts to be confused with someone else’s. You do not have to pay a debt you do not owe.
• Debts that have fallen off your credit report – If a debt has been dropped from your credit report, you may still have to pay it. However, it should not impact your credit score. Unfortunately, debt scavengers sometimes report old debts as new so they reappear on your credit report, which can have severe financial consequences.

How to Deal With a Zombie Debt

Do not agree to pay any debt you believe you do not owe. In fact, you should say as little as possible if someone contacts you about a zombie debt. You do not want to give the debt collector any information to use against you or potentially revive the debt.

You should do some research before you take any action. The Fair Debt Collection Practices Act and other laws provide certain legal protections for borrowers. You can also ask the debt collector to validate the debt you allegedly owe.

No matter what, talk to a lawyer right away. A debt defense attorney can review your situation, tell you if you have to pay the zombie debt, and help you deal with debt scavengers.

How to Remove Zombie Debt from Your Credit Report

There are ways you can have a zombie debt removed from your credit report. You may have to contact the credit bureau directly, and each of the three main credit bureaus has procedures for these situations. The best and easiest way to remove zombie debts from your credit report is to work with an experienced debt defense lawyer.

Talk to Our Experienced Debt Defense Attorneys in Fort Lauderdale, FL Today

Is someone trying to collect on your old or expired zombie debt? Our Fort Lauderdale debt defense lawyers have more than 100 years of combined legal experience and have helped our clients eliminate more than $100 million in debts. To learn more about how to deal with zombie debt, contact us today for a free consultation.

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4 Tips for Starting Over After Bankruptcy

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

Filing for bankruptcy can provide you with a fresh financial start. But recovering after bankruptcy isn’t always easy. Knowing how to start over after bankruptcy can help you build a solid financial future. Contact Loan Lawyers today to learn more about what to do after bankruptcy to take charge of your finances.

1. Save Your Paperwork

Although you may want to put your bankruptcy behind you as quickly as possible, saving any paperwork from your bankruptcy case is essential. You may be asked for copies of your bankruptcy notices or files — especially when applying for large ticket items such as a car loan or mortgage after bankruptcy.

Your bankruptcy paperwork will also be handy if a creditor or collection agency approaches you about money owed. If your bankruptcy included that specific debt, you could easily prove that your bankruptcy was discharged and you no longer owe that money.

2. Create a Budget

Knowing how to manage your money is critical to helping you establish good financial habits with your day-to-day spending. One way to do this? Create a budget.

However, creating and sticking to a budget may sound challenging. To set yourself up for budgeting success, you must have a plan. First, understand where you stand now. Take an inventory of your income, savings, spending, and debt. Then, create a financial plan for life after bankruptcy.

For example, you may choose to use the 50/30/20 method of budgeting. This budget assigns 50 percent of your income to needs, 30 percent to wants, and 20 percent to savings. After budgeting, you may find you need to cut back on spending or get a side hustle or part-time job to bring in more income. 

3. Save Money for Emergencies

Building an emergency fund is another way to create healthy financial habits after bankruptcy. When unexpected expenses pop up, emergency savings can help you avoid landing back in debt.

Even with the necessity of an emergency fund, 56 percent of Americans don’t have enough savings to cover a $1,000 emergency expense – causing stress and increasing debt. Don’t put off saving money for emergencies. Even if you only have a small amount to fund an emergency savings account, saving is key to helping your fund increase over time.

4. Check Your Credit Report

When you filed for bankruptcy, you probably saw your credit score dive. Your credit score increases as old credit accounts drop off your credit over the next seven or ten years, depending on if you filed Chapter 7 or Chapter 13. 

However, make sure your credit reports note which accounts are included in your bankruptcy. You don’t want an overdue credit account floating around, causing more financial havoc. Check your credit report regularly to help track your credit accounts and reduce reporting errors. 

Things to Avoid After Filing Bankruptcy

Part of knowing how to recover after bankruptcy is understanding what not to do. Some things to avoid when recovering from bankruptcy include:

• Avoid credit repair scams
• Avoid payday lenders
• Avoid taking on additional debt
• Avoid repeating past financial mistakes

Taking proactive steps to repair credit and improve your financial situation can help you pave the way for a more solid financial future.

Talk to Our Experienced Bankruptcy Lawyers in Fort Lauderdale, FL Today

If you’re considering filing for bankruptcy, you’ll want an experienced debt solution law firm with a proven track record of success on your side. To gain control of your debt, don’t hesitate to call the experienced bankruptcy attorneys at Loan Lawyers to discuss your options and how we could help.

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How to Deal With an Aggressive Debt Collector

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

Are debt collectors harassing you? Are they calling or texting you at all hours? Are they using threatening language? Aggressive debt collectors use a variety of tactics to get people to make payments on their debt. They are often persistent and resort to bullying or threatening you. Don’t be intimidated by this behavior. Know that you have rights as a consumer and that an experienced attorney could help.

If you are facing illegal harassment from rude debt collectors, Loan Lawyers could help you stop this unwanted and possibly illegal behavior. Contact us for more advice on how to deal with rude debt collectors.

Tips on How to Deal with Aggressive Debt Collectors

Responding to debt collectors can feel overwhelming, so here are some tips to help:

1. Know your rights – The Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collections Practices Act protect consumers from unauthorized communication from debt collectors. These laws specify how debt collectors may obtain your information, how they can contact you, and when they can contact you. False and misleading representations, harassment, and other unfair practices are prohibited.
2. Keep records – Make detailed notes about any calls you receive and what you discuss. You should also keep your financial records organized. You can dispute the debt if their requests do not match your records.
3. Don’t make a payment – Making a small payment of $5 or $10 may seem like a good idea. However, it could restart the statute of limitations. This could lead to a lawsuit or wage garnishment. Don’t make promises such as “I can start paying next month” for the same reasons.
4. Request that they stop calling – You can send a letter to the collection agency requesting they stop calling. You can also block their number on your phone.
5. Stay calm – If your case goes to court, you don’t want evidence that you became angry or used vulgar language when dealing with the collection agency. You may also unintentionally share damaging information if you’re mad or upset.
6. Consult with an attorney – Once you hire an attorney, the FDCPA requires that the debt collector speak directly with your lawyer. This can end unwanted calls, and you won’t need to worry about accidentally sharing information that could jeopardize your case.

You may also report abusive debt collectors to the Federal Trade Commission and the Consumer Financial Protection Bureau.

Common Actions Performed by Aggressive Debt Collectors

Signs you are speaking with an aggressive debt collector include:

• Speaks disrespectfully, including using vulgar language
• Communicates in an aggressive or angry tone
• Displays a lack of sensitivity for your finances or personal concerns
• Uses threats or scare tactics

Many of these and other related behaviors are prohibited by law.

Talk to Our Skilled Debt Collector Harassment Attorneys in Fort Lauderdale, FL Today

Living under a cloud of debt can leave you feeling frustrated and hopeless. Aggressive debt collectors only add to that stress.

At Loan Lawyers, we have helped over 7,000 Florida clients get out of debt. We’ve also recovered over $25 million on behalf of our clients as compensation for negligence or fraud by debt collectors, credit card companies, and banks. We are here to protect you from their abuse. Contact us today for a free consultation.

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Claiming Surplus Funds After a Florida Foreclosure

Going through a foreclosure is devastating. Throughout the process, you have had a lot to think about. Afterwards, you likely just want to put it all behind you and start moving forward. However, there may be surplus funds you are not aware of. After a home has gone through the foreclosure process, there are often funds remaining and sometimes, these are taken by the lender as profit.

While surplus funds are essentially profits from the sale, they should not be taken by anyone other than the homeowner who was vacated from the premises. Unfortunately, many homeowners do not even know that these funds exist. If you have been through a foreclosure, you may not know that there are surplus funds you can claim. Your lender may not have notified you about these funds, and if that is the case, you may be able to take legal action against the lender. Below, our Florida foreclosure lawyer explains more.

What are Surplus Funds?

After a foreclosure sale or deed in lieu, there is sometimes additional money remaining. This additional money is called surplus funds. In most cases, the amount is shown on the certificate of disbursement. The additional funds can be a result of insurance, taxes, operating expenses, and other fees. When surplus funds do remain after foreclosure, the lender has essentially made a profit from selling your home.

Surplus funds are also sometimes present when a homeowner has equity in the home at the time of the foreclosure sale. In these cases, homeowners may receive a letter from a trustee stating that there are surplus funds. When the foreclosure is complete, the homeowner can then claim the surplus funds. The majority of people who go through the foreclosure process are unaware that there are surplus funds, or that they have a right to claim them.

Foreclosures are complicated processes for those going through them, and they are also very stressful experiences. You may be feeling confused and uncertain about what the future holds. You may also be worried about taking the right steps to complete the process. Not only that, but you may not realize or remember that you have equity in the home. If you do not have the right advisors on your side, such as a Fort Lauderdale foreclosure defense lawyer, you could miss out on funds that are owed to you.

The foreclosure process is a long one, but after your home has been sold at a foreclosure auction, the lender should notify you if there are surplus funds you can claim. The surplus funds are essentially the difference between the outstanding balance on the mortgage loan and the sale price. Due to the fact that foreclosure sales are auctions, the prices for homes can vary greatly. The equity a homeowner has put into a home is not affected by the final selling price of the home, as it is static.

Who Can Claim Surplus Funds?

Surplus funds are typically given to the most recent homeowner. As such, you should receive them after the foreclosure sale. However, other parties may come forward and try to claim the surplus funds. For example, if there is a second mortgage on the property, the lender of that loan may claim the funds to help pay off the debt the borrower owes to them. In this case, you will receive surplus funds only if there is additional money left after the second mortgage lender has made their claim.

How to Claim Surplus Funds After a Foreclosure in Florida

If you believe there are surplus funds after a foreclosure sale on your former home, there are certain steps you can take to claim them. These are as follows:

• Prove ownership: You must first prove that you were the last owner of the home and as such, are entitled to the surplus funds. You can prove ownership by obtaining a copy of the title through a title search if you no longer have a copy.
• Verify the surplus funds: During this phase of the process, you must analyze the foreclosure records and subtract any loans or liens that were on the property. The remaining amount equals the funds you should have received after the foreclosure sale. A Fort Lauderdale foreclosure defense lawyer can assist with gathering the evidence that is required for this part of the process. If you have a Deposit of Surplus Funds letter, this can also serve as evidence to verify the surplus funds.
• Contact the trustee: You need to contact the bank or the lender that has a lien on your home and notify them that there are surplus funds you are owed. You may have to reach out to more than one lender if you had a second or third mortgage on the home.
• Submit your claim: You must submit your claim to the court and to the trustee. The trustee and the court will then examine your claim and determine if you are owed surplus funds. If you do not claim the funds within two to three months, the funds will be kept by the court.
• Hearings and motions: There may need to be court proceedings and hearings before you receive the surplus funds owed to you. Once all the hearings and motions are complete, you can then receive the surplus funds.

Why Working with a Foreclosure Defense Lawyer is Important

If you have surplus funds to claim, do not go through the process without the help of a foreclosure defense lawyer in Fort Lauderdale. There are many companies that claim they will help you obtain the funds you are owed, but they will require you to sign over your rights to the property, and therefore the funds, that are rightfully yours. They also will not provide legal advice. A lawyer will never ask you to sign over your rights but instead, will make sure that they are protected at all times.

Call Our Foreclosure Defense Lawyer in Fort Lauderdale Today

If you have gone through the foreclosure process and believe you may have surplus funds owed to you, do not hesitate to call our Fort Lauderdale foreclosure defense lawyers. Our experienced attorneys at Loan Lawyers can help you navigate the process and will give you the best chance of obtaining the funds you deserve. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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Being sued by Credit Corp Solutions or another debt collector for a student loan debt?

Many people believe that since they are in default on student loans, nothing can be done.  However, we are seeing more and more student loan debt being sold to debt buyers such as Credit Corps Solutions. That is music to our ears because whenever a debt buyer is suing someone for student loans, that already gives us really good leverage against them.  Debt buyers rely on people to assume nothing can be done so they can strong-arm them into paying them a ton of money or they simply will get a judgment against the borrower that will sit and earn interest for 20 years or more until it is paid off.  However, informed borrowers know that hiring a lawyer may result in getting the entire student loan debt wiped out without paying a penny.  That is correct, these cases are often very defendable because debt buyers such as Credit Corp Solutions may have a difficult time proving their case in court.

Sued By Credit Corp solutions? Talk to Our Experienced Debt Defense Attorneys in Fort Lauderdale, FL Now

If you are being sued for a student loan debt, the worst thing you can do is ignore it and let them get a judgment against you or try to work out a deal on your own without consulting Loan Lawyers first.  We have eliminated dozens of student loan debts already this year and may be able to get your student loan lawsuit dismissed or resolved in your favor.  Trying to handle a student loan lawsuit on your own will likely cost you a lot of money.  Hiring Loan Lawyers may result in having the entire student loan lawsuit dismissed without you having to pay a penny.

So, if you are being sued by Credit Corp Solutions or any other debt buyer for a defaulted student loan, call Loan Lawyers today for your 100% free consultation with one of our attorneys.  Do not go at it alone, put our experience, track record, and aggressive strategies to work for you!  Call us right now at 1-888-FIGHT-13 or contact us online for your free consultation.

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How Long Can a Collection Agency in Florida Come After You?

If you cannot pay off a debt, it could be sent to a collection agency to try to recover what you owe. While they can contact you to seek repayment for the debt, they are not allowed to harass you or violate your rights.

If you have been contacted by a debt collector in Florida, get in touch with a debt defense attorney from Loan Lawyers. Our legal team can help you understand your rights and file a complaint on your behalf to stop the harassment.

Debt Collection Statute of Limitations in Florida

Debt collection laws in Florida set a five-year statute of limitations in most cases. This gives creditors only five years to file a lawsuit against you to recover a debt you owe. The time set by the statute of limitations begins on the date of your first missed payment. However, the clock can be paused or reset for various reasons, such as making a partial payment on a debt you owe. After the deadline passes, the creditor will not have any legal grounds to sue you.

How Do I Know If the Collection Agency Is Harassing Me?

Debt collectors have been known to harass debtors by:

• Making threats
• Calling too often
• Contacting their family members
• Lying about the amount they owe
• Verbally abusing them
• Contacting them after they have been told to stop
• Attempting to collect on a debt that has already been discharged or was never owed

However, borrowers are legally protected from harassment by debt collectors. Federal and Florida laws defend debtors from unfair treatment and abusive, deceptive, or fraudulent debt recovery tactics. If you believe your rights as a borrower have been violated, contact a debt collection attorney right away to review your legal options.

How to Deal with Debt Collectors Over the Phone

If you are getting harassing calls from collection agencies, remember that you can always hang up or not answer when the debt collector calls until you’re ready. However, keep the following in mind if you do talk to them:

• Gather information about the collection agency to send a cease-and-desist letter. This includes the agency’s name and mailing address.
• Take notes during your conversation. Be sure to note the date of the conversation, the debt collector’s name, the name and address of the agency they work for, the amount they are attempting to collect, and other relevant information.
• If you don’t recall a debt you owe or suspect the debt collector may be acting fraudulently, have them mail information about the debt to your current mailing address.
• Never agree to pay the debt or admit you are liable for repaying it until you are sure you owe the amount the agency says you do. Remember that some collection agencies will try to collect on a debt even after the five-year deadline has passed.
• Don’t provide any personal information, including employment or financial information. They can use this information against you when trying to recover the amount they say you owe.

Contact a Debt Collection Defense Lawyer for Help Today

Have your rights been violated by a debt collector in Florida? If so, contact Loan Lawyers to find out how we can help. Our foreclosure defense, bankruptcy, and debt defense lawyers are committed to finding the best financial solution for our clients. We can advocate for your legal rights to seek the best possible outcome. Call or reach out to us online today for a free consultation.

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What To Do About Robocalls?

Robocalls this year are expected to reach 48.5 billion, down only slightly from the 50.4 billion calls in 2021, according to the latest figures by YouMail, a robocall blocking and tracking firm. That volume of calls breaks down to an eye-popping 4 billion monthly robocalls.

It’s hoped that the FCC’s latest efforts—along with an expanded partnership with 36 state attorneys-general, will help steepen the drop in robocalls.

The FCC said that over 8 billion robocalls originate from a single bad actor with operations based in Panama. The rogue company uses small U.S.-based carriers to route millions of daily robocalls onto large consumer phone company networks, according to the FCC.

“Auto Warranty” scam robocalls resulted in more consumer complaints to the FCC than any other unwanted call category each of the last two years, the agency says.

These calls usually claim your insurance or warranty is about to expire and they frequently use consumers’ real information in order to appear legitimate, the FCC says.  These calls may be seeking consumers’ personal or financial information in order to defraud them, hoping to initiate a payment, and/or garnering information about active phones, the agency added.

Consumer Tips Against Robocalls

The FCC offered some tips to consumers when they do receive a robocall:

• Don’t share. Do not provide any personal information to anyone who calls you unexpectedly.
• Be aware. Telephone scammers are good at what they do and may use real information to gain your trust and imply that they work for a company you trust.
• Use Caller ID. Criminals might use “spoofing” to deliberately falsify the information transmitted.
• Double-check. If you think it might be a legitimate call, hang up and call the company with which you have an established business relationship using a phone number from a previous bill or on their website.
• File a complaint with the FCC.

Talk to an Experienced TCPA Violation Attorney in Fort Lauderdale, FL Today

Our experienced Fort Lauderdale TCPA violation attorneys at Loan Lawyers will review the specifics of your case and provide solutions for you. Contact us online or give us a call today and schedule a free consultation with our skilled attorneys.

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What’s the Difference Between a Forbearance Agreement, Repayment Plan, and Loan Modification?

When you’re having problems making your monthly mortgage payments, you might have a few options to negotiate with the lender to get current on your mortgage or make your payments more affordable. It’s important to understand the differences between a mortgage loan modification, forbearance agreement, and repayment plan, so you can choose the best option for your financial and personal situation.

What’s the Difference Between a Forbearance Agreement, Repayment Plan, and Loan Modification?

While forbearance agreements and repayment plans spread a couple of payments over a longer period, loan modifications permanently alter the monthly payment. Mortgage forbearance agreements and repayment plans are typically used when a homeowner has a temporary situation that makes it difficult to meet monthly payment obligations. However, a loan modification agreement may be a better option for a homeowner who simply cannot afford their mortgage.

What Is a Loan Modification?

A loan modification is an agreement between you and the lender to change the terms of your mortgage loan to make your monthly payments more affordable. Lenders may agree to one or more modifications to your mortgage, including lowering the interest rate, extending the loan term length, or forgiving a portion of the principal amount.

Altering the interest or extending the loan term are frequently favored by banks, since forgiving part of the mortgage principal means the bank won’t be paid back some of the money they loaned. Waiving some principal can also have consequences for the homeowner, such as tax liabilities.

What Is a Forbearance Agreement?

In a mortgage forbearance agreement, the lender agrees to temporarily suspend or reduce your monthly mortgage payments. Mortgage forbearance agreements may be used when you only need a few months of relief from your mortgage payments, such as when you are temporarily disabled from working or between jobs.

The interest on your mortgage loan typically continues to accrue during the forbearance period. To make up for it, you may be required to make a lump sum payment when the period ends or have slightly higher monthly payments over the rest of the loan period.

What Is a Mortgage Repayment Plan?

Using a mortgage repayment plan to avoid foreclosure can help when you have missed one or two monthly payments. In repayment plans for mortgages, the lender agrees to spread out the past due balance over a period of months or years. Once you have paid off the past due balance, your monthly payments will return to their normal amount.

Get a Free Consultation with Our Debt Relief Attorneys to Evaluate Your Options

If you are having trouble making your mortgage payments, you have options for resolving your financial difficulties and keeping your home. Contact Loan Lawyers today for a free consultation to speak with our debt relief attorneys.

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Things to Know About Filing Bankruptcy in Hollywood, Florida

Bankruptcy is a very good option for many people struggling with significant debt that they cannot repay. Although bankruptcy will stay on your credit report for some time, it also gives you a clean financial slate so you can make a fresh start. Filing bankruptcy has the potential to become more complex than many people think. Below, one of our Hollywood bankruptcy lawyers explains the most important things you should know about Chapter 7 and Chapter 13 bankruptcy if you are considering filing.

How Does Chapter 7 Bankruptcy Work in Hollywood, Florida?

A Chapter 7 bankruptcy allows you to discharge most if not all of your unsecured debt. The process of filing Chapter 7 involves the following steps:

• Determine if you are eligible: Not everyone is eligible to file Chapter 7 bankruptcy. You will have to pass a means test, which is not easy. A Hollywood bankruptcy lawyer can help you determine if you are eligible, and if Chapter 7 is the right option for you.
• Consider appropriate exemptions: Part of the Chapter 7 process is selling your assets so the proceeds can be distributed among your creditors to cover a portion of your unpaid debt. Your lawyer can advise on which property you own that is exempt from being sold. For example, Florida law provides a very generous homestead exemption that can allow you to exempt the equity in your home.
• Submit the bankruptcy petition: Your bankruptcy case officially starts when you submit the bankruptcy petition to the court, essentially asking the court to grant you a discharge. Your lawyer will help you complete the petition and ensure it includes all the necessary information.
• The automatic stay: As soon as you file your bankruptcy petition, the bankruptcy court will issue an automatic stay. The automatic stay places a hold on any debt collection attempts, so creditors and debt collectors cannot contact you to try and recover the debt.
• The bankruptcy trustee: A bankruptcy trustee will be assigned to your case. The trustee will handle certain aspects, such as object to certain exemptions, meet with the creditors, and inform the court of any status update in your case.
• Adversary claims: Creditors have the right to file an adversary claim if they believe the debt they own is non-dischargeable or they believe the borrower has misused the bankruptcy process.
• The discharge: Lastly, any assets that were not exempt are sold by the bankruptcy trustee and the bankruptcy court will discharge any of your debt that is eligible.

How Does Chapter 13 Bankruptcy Work in Hollywood, FL?

Not everyone is eligible, or wants to, file Chapter 7 bankruptcy, so they file Chapter 13 bankruptcy. Instead of discharging your debt so you are no longer responsible for it, your debt is reorganized into a payment plan. The payment plans in Chapter 13 bankruptcy generally last from three to five years and while you are still responsible for the debt, it is much easier for you to repay. Like Chapter 7, a Chapter 13 bankruptcy can protect you from foreclosure, wage garnishments, and more. The most important things to know about Chapter 13 bankruptcy are as follows:

• The automatic stay: The same type of automatic stay that is issued in Chapter 7 bankruptcy is also issued as soon as you file your petition for Chapter 13. Debt collection efforts must stop once the stay is issued and the stay can even cancel a foreclosure hearing that was already scheduled.
• Mortgage modification: You can force your mortgage lender to agree to a five-year repayment plan that will allow you to pay any missed payments. You do not have to apply for a loan modification and the bank must accept the repayment schedule. A bankruptcy trustee will oversee your case, including the mortgage modification.
• Eligibility: Just like Chapter 7, there are certain requirements one must meet before they can file Chapter 13 bankruptcy. Only individuals who live in the United States can file Chapter 13, so businesses are not eligible. Although there is no means test, there is a requirement that you must have a regular source of income. If you are filing jointly with your spouse, only one of you must have a regular source of income.
• Limits on debt: You can only have a certain amount of debt to file Chapter 13 bankruptcy. Your unsecured debt, or the debt that does not have collateral attached to it, must not exceed $394,725. Your secured debt, or that which does have collateral attached to it, cannot exceed $1,184,200.
• Credit counseling: The bankruptcy courts do not want to grant you bankruptcy only to have you file again soon afterwards. To prevent this from happening, borrowers are required to complete two credit counseling courses. The first course must be completed no longer than 180 days after the petition was filed. Once the case has been filed with the court, the borrower may be required to take another course.
• Creating the repayment plan: You will likely want to include the smallest payments possible when creating your repayment plan, while your creditors will try to get the largest payments possible. It is critical to work with a Hollywood bankruptcy lawyer who can negotiate a fair and reasonable repayment plan.
• Filing the repayment plan: Once you have created a repayment plan, you must submit it to the bankruptcy court for approval. You must submit the repayment plan within 14 days of filing your case. It is important to work with a lawyer because if the court does not find that your plan is satisfactory, it can cause unnecessary delays and unintended consequences.

Call Our Bankruptcy Lawyers in Hollywood, Florida Today

If you need debt relief, do not hesitate to call our Hollywood bankruptcy lawyers. At Loan Lawyers, we have helped thousands of people successfully discharge their debt, and we can guide you through the process and give you the best chance of success, too. Call us now at (954) 523-4357 or contact us online to schedule a free review of your case.

 

 

 

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Defenses to Foreclosure in Hollywood, Florida

Hollywood is a beautiful beachfront community situated between Miami and Fort Lauderdale. Famous for the long Hollywood Beach Boardwalk and dotted with palm trees, the city truly is a paradise for residents. Unfortunately, as picturesque as the city is, things are not always perfect. Like much of Florida, foreclosures are quite common in Hollywood, causing some people to fear the loss of their home. If you have received a foreclosure notice from your lender, it is important to remember that there are defenses available.

You Have Options When Facing Foreclosure in Hollywood

Your home is likely your most valuable asset. It may also be the place where you raise your family, entertain friends, and make good memories. It is natural to feel panicked upon hearing that your lender is going to foreclosure, but it is important to remain calm. You do have options, and they may include keeping your home.

If you wish, you may choose to let the lender continue with the foreclosure process and eventually give up your rights to the property. This is actually a good option for some facing foreclosure, particularly if they cannot afford to continue making mortgage payments.

However, if you want to keep your home and fight the foreclosure, this might be the right option for you. A Hollywood foreclosure defense lawyer can advise on the potential defenses available in your case and help you through the process to give you the best chance of a successful outcome.

Loan Modifications

One of the most common ways Hollywood homeowners avoid foreclosure is by negotiating a mortgage loan modification with the lender. During these negotiations, any part of your mortgage loan can be modified. The goal of loan modification negotiations is to create a new payment plan that is easier for you to repay. A foreclosure defense lawyer can negotiate a modification of any part of your mortgage, including:

• The interest rate
• Your monthly payment
• Elimination of late fees
• The original amount of the loan
• Extending the life of the loan, reducing monthly payments as a result
• Establishing a temporary pause on payments until you are able to resume making them again

Filing for Bankruptcy

Bankruptcy is another legal option that can help you keep your home. If you file Chapter 7 bankruptcy, you can discharge most or all of your unsecured debt. During a Chapter 7, you may have to forfeit some property to the bankruptcy trustee, who will sell the assets and distribute the proceeds among creditors and other lenders. In many states, this includes the borrower’s home.

Fortunately, Florida law does not place a cap, or limit, on the amount of home equity you can protect. As such, if you have enough equity, you may be able to keep your home. Discharging your other debt can also make it easier to make your current and delinquent mortgage payments.

Not everyone qualifies for Chapter 7 bankruptcy, and it is not always the right option for even those who do. A Chapter 13 bankruptcy can also help you keep your home. During a Chapter 13 bankruptcy, your debt is not discharged but instead, is restructured in a new repayment plan. This plan can make it easier for you to repay all of your debt, including your mortgage payments.

Procedural Due Process

When defending you during the foreclosure process, a lawyer will first review any document or other important material related to your case. Along with your original mortgage loan, a lawyer will also review any other important documents,  witness statements, testimonials, receipts of payment, and more. All of this documentation is important when entering into negotiations with your lender. After reviewing the documents, a lawyer may then build a defense that involves:

• Withdrawing the home: If you obtained your mortgage within the last three years, or you have recently refinanced your home, you may be eligible for a loan withdrawal. After withdrawing the loan, you may also receive financial compensation for any interest or other fees you have paid.
• Missing documents: Under Florida law, lenders must submit certain documents when they file the foreclosure action. They must be able to show that they own the loan, usually through the mortgage note, and they must also include any documentation pertaining to mortgage payments that were made or missed. Sometimes this documentation shows an accounting or billing error that can stop a foreclosure. For example, the documentation may show that you made a payment but the lender credited it to the wrong account.
• Fraud: It is not unheard of for lenders to commit fraudulent acts against homeowners. They may include hidden fees, or frequently refinance a loan to no benefit of the homeowner, charge unfairly high-interest rates, or target vulnerable sectors such as elderly individuals.

Why Work with a Hollywood Foreclosure Defense Lawyer?

You are not required to work with a Hollywood foreclosure defense lawyer when trying to keep your home. However, an attorney will help you prepare for the process and will know the potential defenses available.

A lawyer will also represent you if your case goes to trial. If your case makes it to that point, your lender will argue their case to a judge who will then make the final decision. A trial is an intimidating and overwhelming experience, particularly for those who have never been involved in one. A lawyer will build a strong defense in your case and make arguments to the court pertaining to why you should keep your home.

Call Our Foreclosure Defense Lawyer in Hollywood for a Free Case Review

If you have received notice that your lender is starting foreclosure proceedings, you need sound legal advice. At Loan Lawyers, our Hollywood foreclosure defense lawyers have extensive experience representing borrowers and helping them stay in their homes. We will put that experience to work for you in the courtroom or when negotiating with your lender. Call us now at (954) 523-4357 or reach out to us online to schedule a free consultation and to obtain the sound legal advice you need.

 

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Look Before You Leap: Dangers of Inadvertently Reaffirming Time-Barred Debts

Between the scam calls and debt collections, sometimes your phone can feel like your enemy. It is especially unnerving to receive collection calls on debts that you believed were written off ages ago. These collectors sometimes encourage you to make any payments you can on these old debts-even as low as a single $10 payment. Such a low payment may not seem like much to you especially if the balance is exponentially higher, but it is important to pause and consider the implications BEFORE making a payment or promising to pay.

Statute of Limitations for Debt in Florida

In Florida, the statute of limitation i.e. the time that a creditor has to sue you to collect on a debt is five (5) years for breach of contract. See Fla. Stat §95.11. Customarily, we count the five years from the date that the account was charged off. If the debt is past the statute of limitations, the creditor cannot sue you to collect on the debt unless you make a payment or promise to pay. By promising to make a payment or making this payment, even a nominal one, you reaffirm the debt and the statute of limitation may restart. This means that the creditor may now have an additional five (5) years to sue you for the debt. This can result in some unfortunate outcomes.

Recently, a creditor filed a proof of claim in one of our bankruptcy cases seeking the payment of about  $1,100. The debt was however charged off in 2015, and our client was never sued for this debt. Because the debt was past the statute of limitation, we moved to have the debt excluded. Through researching the debt, we discovered that the creditor had convinced our client to make a $20 payment a few months before he decided to file for bankruptcy. This $20 payment caused our client to now be responsible for the repayment of a $1,100 debt.

Hopefully, our client’s mistake can save someone else from making a similar one. Before making a payment or a promise to pay on a debt that is more than four (4) or five (5) years old on which you have not been sued, it is best to discuss this with an experienced attorney.

Talk to the Skilled Debt Defense Attorneys in Fort Lauderdale at Loan Lawyers Today

Call us now for your 100% free consultation with one of our debt defense attorneys.  We will go through the details of your specific situation, help craft a plan that works best for you, and put you in the best position to try to obtain relief from these debts.  Call us now at 1-888-FIGHT-13.

Loan Lawyers has helped over 7,000 South Florida homeowners and consumers with their debt problems, we have saved over 3,000 homes from foreclosure, eliminated more than $100 million dollars in mortgage principal and consumer debt, and have recovered over $25 million dollars on behalf of our clients due to bank, loan servicer, and debt collector violations.  Give us a call today.

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Can Lenders Foreclose When Payments Are Current?

Florida is often one of the hardest-hit areas in the country for foreclosures and that held true this year, too. During the first three months of 2022, Florida was the eighth-highest state in the country for foreclosures. In total, one out of every 1,211 housing units was foreclosed on in Florida. That is a total of 8,147 units foreclosed on, for a total of 0.08 percent.

Many people understand that when homeowners do not make their mortgage payments, their lender may foreclose on their home. However, many do not understand that a foreclosure can happen even when the mortgage is current and has been paid regularly. Below, our Florida foreclosure defense lawyer explains when foreclosure could occur even when payments are current.

Property Taxes Have Not Been Paid

All municipalities throughout Florida collect property taxes on homes. Taxes are sometimes made as part of the mortgage payment, which is known as escrow. When taxes are not paid through a mortgage payment but are paid separately, the homeowner is responsible for paying the taxes directly to the government. When homeowners do not pay the taxes themselves, the lender may make up the payment. The homeowner is then responsible for paying the property taxes to the lender. If they fail to do that, the bank will likely foreclose on the property.

Outdated Homeowners Insurance

Like property taxes, most mortgage contracts include a clause that requires homeowners to purchase homeowners insurance and to keep it up to date. Any homeowner who does not carry and maintain up-to-date insurance is in violation of their mortgage contract. Any violation of a mortgage contract can result in foreclosure, including violating the homeowner’s insurance clause.

The Property is Not in Good Condition

Many people understand that their mortgage contract requires them to pay property taxes and to maintain up-to-date homeowners insurance. However, some homeowners do not realize that their mortgage contract also requires them to keep the property in good condition. This typically means that the lawn needs to be cut regularly, and that any part of the home that has fallen into disrepair must be corrected as soon as possible. Any time a homeowner fails to keep their premises in a safe and good condition, their lender may foreclose on the home.

Homeowner Association Fees Have Not Been Paid

Over the past several years, homeowners associations (HOAs) have become extremely popular. HOAs are community boards that outline regulations and rules all homeowners must comply with when they live in a specific neighborhood or in a multiple-unit building, such as a condominium. HOAs also maintain shared spaces, such as lobbies, courtyards, and other spaces open to anyone who lives within the HOA.

In exchange for their work, HOAs charge the homeowners they represent fees, also known as dues or assessments. HOA fees are typically paid every month, just like the mortgage. Also just like a mortgage, when HOA fees are not paid, the homeowners association can petition a court and obtain a judgment that allows them to sell the property to recover the debt, even if the mortgage is current.

Mortgage Payments were Made to Incorrect Lender

It may seem like a mistake no one could ever make but sometimes, mortgage payments are not paid to the right lender. Unfortunately, it happens more often than people think. Lenders often bundle mortgages together and then sell them to another lender. Sometimes, homeowners do not even realize that their mortgage has been sold to another lender. As a result, they continue making their mortgage payments to the original lender. The entity that purchased the mortgage may then foreclose on the home because they have not been receiving their mortgage payments.

How to Avoid Foreclosure

Facing foreclosure is not only financially devastating, but it is also emotionally traumatizing. It will also damage your credit score for many years to come, making it a challenge to obtain any credit in the future. The good news is that even if your lender has already started the foreclosure process, there are ways to stop it so you can keep your home.

One of the most popular options for stopping foreclosure is a loan modification. A loan modification can change any part of the loan, including the interest rate, the duration of the loan, and more. To obtain a loan modification, you have to ask for one from your lender. There is no guarantee that any lender will approve a loan modification, but they are more common than people think.

Payment suspensions and repayment plans are other options for avoiding foreclosure. A payment suspension allows you to stop making payments for some time, which is a good option when people suddenly become unemployed or there is another situation that prevents them from making regular mortgage payments. A repayment plan will temporarily increase the number of your payments so that you can get caught up on your mortgage little by little.

For any of the above options to work, you must stay in contact with your lender. Even if you do not think those options will work for you, it is still critical that you do not ignore your lender. Simply staying in communication with them and keeping them updated about your situation can go a long way when you are trying to avoid foreclosure.

Call Our Foreclosure Defense Lawyers in Florida to Discuss Your Legal Options

If you have missed several mortgage payments, or your lender has notified you that they are starting the foreclosure process, it is important to remember that you do have options. At Loan Lawyers, our Florida foreclosure defense attorneys have helped thousands of people stay in their homes and we can put our experience to work for you, too. Our seasoned attorneys are skilled negotiators and can work with your lender on your behalf so you have the best chance of a favorable outcome. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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Ten Signs Your Credit Card Debt is Out of Control

Residents of Fort Lauderdale carry some of the highest credit card debt in the country. In the first quarter of 2022, credit card debt in the city stood at $983.2 million, averaging approximately $13,115 per household. This is well over the average nationally and is among the most of any large city within the United States. Clearly, many people are struggling with debt that has gotten out of control. Unfortunately, many people do not even realize their debt has reached such unmanageable levels. So, how can you tell if your debt has gotten out of control? Below are ten signs.

1.Your Credit Cards Are Maxed Out

If you do not pay your full credit card balance every month, you can quickly max out all of your cards, and even go above your limit, which will cost you more in interest and late fees. If you have more than one credit card that is maxed out, it will only compound the problem. If your balance exceeds the limit, the company that issued you your credit card is likely to increase your interest rate. This will only make it even more difficult to pay off your balance.

2. You Can Only Afford Your Minimum Monthly Payment

Credit card companies will always give you a minimum balance you must pay. However, you should always pay more than the minimum amount so you pay more towards your balance and eventually eliminate your debt. Ideally, you should pay off your full credit card balance at the end of every month. If you are finding that you cannot afford to pay more than your minimum monthly payment, it is a sign that your credit card debt has spun out of control.

3. You Make Late Payments

If you miss making credit card payments, it is going to hurt your credit even further. A late payment increases the amount you now need to pay to catch up on the debt, and it will also result in late fees being added to your balance. If your credit card is maxed out, even just one late fee could push you past your limit, hurting your credit even further.

4. You Use Other Debt to Pay Off Your Credit Cards

Repeat balance transfers, cash advances, and payday loans are convenient and they may seem like a great option to pay off your credit card debt. Unfortunately, you are only going into more debt and if you use your credit card after you have paid the debt, the situation only becomes worse. If you need to take out debt to pay your debt, it means it has gotten out of control. It is important to determine how you are going to pay off your debt, without taking on any more.

5. You Use Credit Cards to Purchase Every Day Necessities

Using credit cards to pay for groceries or other daily necessities can help you earn cash back and rewards. If you pay your balance every month, it can even help improve your credit score because you are showing that you can afford to take on the debt. If you are using your credit card to make daily purchases because it is the only way you can afford them, that is very concerning.

6. Your Credit Score Has Dropped

You should not use more than 30 percent of your overall credit. Thirty percent is considered a good credit utilization ratio or, in other words, how much credit you are using compared to the credit you have available. If your credit utilization ratio is higher than 30 percent, it will lower your score and is a sign that your credit card debt is out of control.

7. You are Denied New Credit

Credit card companies may notice that your credit card debt is out of control before you do. If you have been denied a new credit card, the credit card issuer should have sent you a letter notifying you of the reason for the denial. If the credit card company said they could not approve your application because of high balances on your credit card, it is a sign that it is time to stop spending and pay back your debt before the situation becomes worse.

8. You Hide Your Debt

If you feel as though you have to hide your debt, it is a sign that it has become unmanageable. Hiding your debt could mean that you do not tell your spouse about it, or that you do not open credit card statements when they come in the mail.

9. You Do Not Have Any Savings

A significant amount of debt will mean that you do not have money for anything else, including savings. If you do not have savings, you may have to eventually take on more debt if an emergency occurs, which will only make paying it off even more challenging.

10. You Worry About Paying Off Your Credit Cards

Anyone who has struggled with debt knows that worrying about paying it off can keep you up at night. If you have noticed that you are increasingly concerned about paying off your debt, it may mean you have more than you can handle. However, do not think that if you do not stress about your debt that it is under control. You may be in denial about the seriousness of the situation, or you may just be ignoring the problem.

Problem with Debt? Call Our Consumer Debt Lawyer in Fort Lauderdale for Help

Struggling with debt often means receiving harassing calls from debt collectors, and facing lawsuits that could result in wage garnishment or other consequences that will make your life more difficult. At Loan Lawyers, our Fort Lauderdale consumer debt lawyers can help with any legal action you may be facing and will give you the best chance of a favorable outcome. Call us now at (954) 523-4357 or contact us online to schedule a free review of your case and to learn more about how we can help.

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Is Using a Personal Loan to Pay Off Credit Card Debt a Good Idea?

According to the latest data released by the Federal Reserve, consumer credit increased by a record $38 billion in April of 2022. The increase shows that as Americans also deal with record-high inflation, they are starting to lean on credit cards more. Revolving credit, which largely includes credit cards, totaled a record $1.103 trillion, inching about the old record of $1 trillion set prior to the pandemic.

The news is not all bad, considering that increased credit card balances mean increased consumer spending, which is important for the economy. Still, while credit cards are a convenient way to make daily purchases, they can become a real burden when the balances grow out of control and you cannot repay them. There are many strategies people use to pay off credit card debt. One of those ways is by using a personal loan. So, is using a personal loan to pay off credit card debt a good idea?

How to Use a Personal Loan to Pay Off Credit Card Debt

Credit card debt is known as revolving debt because you can regularly pay it off, freeing up more credit for you to use. Personal loans are not a revolving type of debt. They are paid in one lump sum, which you can then use and repay over a certain period of time. When you use a personal loan to pay off a credit card, you are essentially using the loan to consolidate the credit card debt. Doing so has many benefits, but there are some drawbacks to consider, as well.

Benefits of Using a Personal Loan to Pay Off Credit Card Debt

Using a personal loan to repay credit card debt is a good option for some people, particularly if your current repayment plan is not working for you. The benefits of using a loan to pay off the debt are as follows:

• Better debt management: The average American carries four different credit cards. One of the biggest challenges that comes with having so much debt spread out across so many different cards is that it becomes difficult to manage. You will have to pay close attention to due dates, minimum amounts, and interest fees. If you miss a payment simply because you did not realize it had come due, it will damage your credit score. With a personal loan, you only have one form of debt to keep track of, making repayment much easier and possibly more affordable.
• Better interest rates: One of the biggest reasons people find it challenging to repay their credit card debt is because so much of their payment goes to interest rates. In August of 2021, the average interest rate on credit cards was 17.13 percent. Compare that with the average interest rate on personal loans of 9.39 percent and it is easy to see how much a personal loan could save you.
• Better credit score: You may also see your credit score improve when you use a personal loan to pay off credit cards. Thirty percent of your credit score is based on your utilization ratio, which refers to the amount of the available credit limit you are using. When you pay off credit card debt using a personal loan, you bring the balances on your cards down to zero, improving your utilization rate and your credit score as a whole. It is important that you do not use your cards to make purchases, and that you consistently make your personal loan payments.

Drawbacks of Using a Personal Loan to Pay Off Credit Card Debt

While there are many benefits you may realize when using a personal loan to pay off credit card debt, there are some potential drawbacks, as well. These include:

• You could incur more debt: It is not uncommon for people to use a personal loan to pay off their credit card debt, only to add back to the balances of the credit cards by using them. If this happens, you will not reduce your debt, you will only take on more. You will also increase your credit utilization rate, which will further damage your credit score.
• Fees are sometimes high: Not all lenders charge fees on personal loans, but many do. For example, personal loan origination fees are very common with this type of debt. When applying for a personal loan to repay your credit card debt, it is crucial that you read the fine print in the agreement so you are not unpleasantly surprised in the future.
• Saving money is not guaranteed: While it is true that the interest rates on personal loans are lower, on average, than credit cards, this is not always the case. If you do not have a fairly high credit score, you could pay a higher interest rate on a personal loan than you are currently paying on your credit cards. Lenders will view you as a higher risk and so, they will charge more in interest to recoup any potential cost of giving you the loan.

How Much Can You Borrow on a Personal Loan?

The amount available to you using a personal loan will depend on many factors. These include the specific lender you are choosing, and your own credit score and financial situation. In 2020, the average balance of personal loans was $16,458. However, there are lenders that offer personal loans with balances as high as $100,000. It is extremely important to thoroughly research any lender you are considering using for a personal loan, so you know upfront how much you can expect to receive, and how much you can expect to pay for it.

Our Consumer Debt Defense Lawyers in Fort Lauderdale Can Advise You of Your Legal Options

If you are struggling with a high amount of debt, our Fort Lauderdale consumer debt defense lawyers can provide the legal advice you need. At Loan Lawyers, our seasoned attorneys can outline your options including negotiating the debt or defending against unfair claims for it. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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