Is Your Mortgage Forbearance Plan Coming to an End?

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

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

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

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

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

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

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

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

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

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Foreclosure Filings Are Down, but for How Long?

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

Foreclosures Were Down in November

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

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

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

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

Foreclosures Will Increase When the Federal Moratorium Expires

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

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

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

The Backlog Will Not Compare to the Great Recession

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

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

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

Foreclosure Moratorium Protection Is Temporary

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

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

Our Florida Foreclosure Defense Lawyers Can Provide the Help You Need

If you are facing foreclosure, it is important to understand that there are defenses available. At Loan Lawyers, our experienced Fort Lauderdale foreclosure defense attorneys know what those are and how to use them to give you the best chance of keeping your home. Call us today at (954) 807-1361 or contact us online to schedule a free consultation and to learn more about how we can help.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

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

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

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

Obtain a Copy of Your Credit Report

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

Fix Errors on Your Credit Report

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

Register with Credit Monitoring Service

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

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

Obtain a Credit Product

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

Limit How Much You Use Credit

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

Stop Spending

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

Start Saving

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

Pay Automatically

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

Pay As Much As You Can

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

Transfer to Low-Interest Credit

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

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

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

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

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How to Choose a Foreclosure Defense Lawyer

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

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

What Kind of Lawyers Handle Foreclosure Defense?

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

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

Funding a Reliable and Trustworthy Foreclosure Defense Attorney

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

Resources

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

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

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

What to Look For

Consider the following when choosing a foreclosure attorney:

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

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

Watch Out for Warning Signs

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

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

Why You Can Trust Loan Lawyers

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

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

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

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

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

Contact Us Now to Find Out How We Can Help

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

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

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Can I Handle My Foreclosure Lawsuit By Myself?

Thousands of American homeowners face the daunting issue of foreclosure every year. If you’re dealing with a foreclosure yourself, you’re not alone.

In particular, Florida residents have experienced some of the most alarming foreclosure rates in the country over the past decade. Florida has reported the highest foreclosure rate in the United States.

What happens if you’re already strapped for cash and struggling to figure out how you’ll fight back against a foreclosure filing on your home? While you might be tempted to handle it yourself, fighting a foreclosure lawsuit against a lender can be challenging. Success often requires specific knowledge of the process. With so much on the line, handling a foreclosure battle without the assistance of an experienced attorney could spell disaster.

To learn more about what is involved in the foreclosure process in Florida, contact Loan Lawyers by phone or online now for a free, confidential consultation.

What Is a Foreclosure Pro Se Representation?

When people purchase homes, their mortgage contracts typically include one or more clauses that describe what a lender can do if a homebuyer fails to make their mortgage payments on time.

One of the most common remedies in this kind of situation is called foreclosure. In a foreclosure, lenders seize a delinquent borrower’s property, evict them, and then sell the property in an attempt to recoup any past-due amounts the borrower owes.

There are two main types of foreclosure in the United States, including:

• Non-judicial foreclosures – As the name suggests, non-judicial foreclosures are those that involve no formal judicial process. Non-judicial foreclosure is typically handled out of court, though lenders must still follow specific legal procedures to initiate and finalize non-judicial foreclosure, such as posting official notices of their intent. Florida does not allow non-judicial foreclosures. Any foreclosures that are filed in our state must go through an alternate process known as a judicial foreclosure.
• Judicial foreclosures – In Florida and 22 other states, judicial foreclosure is the only option available for lenders who wish to remove delinquent borrowers from a mortgaged home. In a judicial foreclosure, a lender will sue a borrower in court to obtain permission from the court to sell the borrower’s property. The funds from the sale are used to cover delinquent loan payments.

This brings us to “pro se” foreclosure representation. Every American has the right to defend themselves in court without an attorney, which is what pro se representation is. The term “pro se” is derived from a Latin phrase meaning “for oneself.” Appearing in court without a legal representative is possible in the U.S. legal system.

Pro se representation may seem like an attractive option for people without significant financial resources or those who just prefer to take care of things themselves. However, going to court without a licensed attorney can be a huge risk – especially if you are arguing against experienced professionals on the lender’s side.

Why You Should Consider Hiring a Lawyer

You have your own job, family, and other concerns to deal with. The learning curve for foreclosure defense is steep. Since you don’t want your foreclosure case to be derailed by simple mistakes, it’s a good idea to hire an experienced foreclosure defense attorney before making any big decisions.

A lawyer can help your foreclosure case by:

• Offering specialized training and knowledge – Foreclosure proceedings are subject to a variety of state and federal laws. Foreclosure defense lawyers study and analyze those laws for a living. The laws are complicated and difficult to understand for people without years of practice.
• Providing the most up-to-date information – Not only is foreclosure law complex, it’s also dynamic. The relevant laws change every year, which can be hard to keep up with if you don’t know what to look out for.
• Preparing complex, thorough foreclosure defenses – Many foreclosure defenses are based on arguments that a lender did not follow proper procedures within their claim. This kind of defense requires a thorough understanding of relevant statutes and prior court decisions, which often means an abundance of research and research material.
• Helping you follow specific court procedures correctly – It’s entirely possible to have a solid case with irrefutable proof and then lose out on your right to sue because of a simple administrative blunder. A foreclosure defense attorney knows all of the particular details required by law in your state and can help you avoid this kind of frustration.

Defending Home Foreclosure Is a Delicate Process

If your foreclosure defense lawsuit does not go as planned, you could be facing the loss of your home, an unmanageable amount of debt, and other grave consequences. Foreclosure laws are some of the most complex legal codes imaginable, so it’s incredibly easy to make simple mistakes that have lifelong effects. However, there’s no need to let this process overwhelm you.

Foreclosure defense lawsuits typically involve specific court documents that must be filled out in specific formats and then filed by specific deadlines. You may not know exactly how to respond to a foreclosure summons, manage any necessary paperwork, or mount a competent defense of your case – but a lawyer does.

If your only hesitation has to do with cost, that’s completely understandable. It’s important to keep in mind that many legal consultations are free, and most law firms offer payment plans to help alleviate some of the financial pressure.

Contact Our Foreclosure Defense Lawyers Today

If you are considering handling your own foreclosure defense, contact Loan Lawyers today for more information and a second opinion. We can help you understand the particulars of your unique situation and discuss all of the options that may be available to you.

Call our foreclosure defense, debt defense, and bankruptcy law firm or contact us online for your free consultation.

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The Foreclosure Timeline in Florida

If you are a homeowner in Florida and have fallen into financial hardship as so many people have during the pandemic, it is natural to wonder what happens during the foreclosure process. Knowing what to expect can make this difficult time a little easier and understanding how to prepare can help you avoid foreclosure altogether by taking advantage of one of the alternatives available. If you think you are headed for foreclosure, below is a timeline of what you could expect.

Obtaining a Mortgage

You cannot face foreclosure without first having a home mortgage loan. Your mortgage loan outlines the total amount of the loan, the interest rate on the loan, and the amount of time you have to pay it back. When you took out the loan, you signed a promissory note along with the mortgage. By signing the promissory note, you made a promise to the lender to pay the home loan back within the terms you and the lender agreed upon.

Your Financial Situation Changes

It has never been more clear than during this pandemic that sometimes, things can change in an instant. You may lose your job or have a sudden medical issue that prevents you from working. You may rely on your savings but soon, that runs out. You have not missed a mortgage payment yet, but you fear that it is going to happen soon. It is at this point that you should speak to a foreclosure defense lawyer. A lawyer can advise on your situation, and may even be able to help keep you in your home.

You Miss Your First Mortgage Payment

It is natural to panic as soon as you miss one mortgage payment, but it is important not to. Most lenders will provide a grace period–typically 10 to 15 days after the mortgage payment is due–in which you have to make your payment. You will likely have to pay a late fee, but that is the only consequence for paying within the grace period.

You Miss a Few Mortgage Payments

After you have missed several mortgage payments, the loan servicer will send one or two letters notifying you of the missed payments. The servicer will also likely try to call you to collect the missed payments. At this point, it is crucial that you get sound legal advice from a foreclosure defense lawyer. You may be able to work out an agreement, which may include a loan modification, a forbearance, or a payment plan.

You Enter the Pre-Foreclosure Period

If you and the loan servicer or your lender could not come to an agreement, you will enter into the pre-foreclosure period. In January of 2014, the Consumer Financial Protection Bureau enacted rules that stated mortgage servicers must wait a minimum of 120 days after you become delinquent in mortgage payments until they can begin foreclosure proceedings. During this time, it is crucial to examine all the options that could stop a foreclosure.

You Might Receive a Breach Letter

Depending on your mortgage contract, the servicer or lender may send you a breach letter, or demand letter. The letter will notify you that your loan is in default and if the mortgage requires it, the lender must send it before they start the foreclosure process. The letter will also specify the amount you must pay to bring your account up to date. If you make the payment before this date, it will stave off foreclosure.

The Lender Will File a Lawsuit

Florida is a judicial foreclosure state. This means that before the lender or servicer can foreclose on your home, they must file a lawsuit with the courts. After the lawsuit is filed, you will receive a notice of the complaint along with a summons. The summons tells you when you are to appear in court. You should also answer the complaint within 20 days to avoid a default judgment.

The Lender will File a Motion for a Default Judgment

If you do not file an answer with the court within the appropriate amount of time, the lender or servicer will file a motion for a default judgment. A default judgment will mean the lender automatically wins their case and by not responding, you have forfeited your chance to defend yourself.

The Lender will File a Motion for a Summary Judgment

Even if you do respond to the complaint, the lender will still file a motion for summary judgment if the facts of the case are fairly clear. A summary judgment allows the lender to foreclose more quickly, as this stops the trial process. At this point, it is critical that you work with a foreclosure defense lawyer who can stop the motion for a summary judgment from being granted.

A Trial Date is Set

If the judge denies the summary judgment, a trial date is set for your case. If the judge rules in your favor at trial, you can keep your home. If the judge decides in favor of the lender, the final judgment against you is entered and the foreclosure process will continue.

The Lender Will Prepare the Foreclosure Sale

If you lose at trial, the lender will start to prepare for the foreclosure sale, which usually takes place between 20 and 35 days from the final judgment. A foreclosure defense lawyer can work with the lender to extend this time so you have more time to move. A legal notice of the sale will also be published in the newspaper for two consecutive weeks. By selling your home, the lender can recover some of the money you still owe on your mortgage.

The Lender May Pursue a Deficiency Judgment

Lenders sometimes file deficiency judgments against homeowners who lost their homes in foreclosure. If they are successful, you will need to repay the balance that is left on the loan after the foreclosure sale.

Our Florida Foreclosure Defense Lawyers Can Help You Keep Your Home

If you are facing foreclosure, a Fort Lauderdale foreclosure defense lawyer can help you throughout every step of the process. At Loan Lawyers, we understand the foreclosure process and have used the defenses available to help thousands of homeowners stay in their homes. If you are in fear of foreclosure, call us today at (954) 807-1361 or contact us online to schedule a free consultation.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

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FAQs About Bankruptcy

Bankruptcy is a great way for some people to get rid of all or most of their debt, but the process is confusing for some. Individuals filing bankruptcy typically have questions before, during, and even after the process is finalized. If you are suffering from immense debt, below are the answers to some of the most frequently asked questions. Knowing these answers before you begin can help you to better prepare for the process.

What Is Bankruptcy?

Bankruptcy is the legal process for discharging debt. There are many different types of bankruptcy you can file depending on whether you are filing a personal bankruptcy or filing for your business.

What Type of Bankruptcy Should I File?

No one can determine which type of bankruptcy is right for you without first reviewing the facts of your case. Generally speaking, Chapter 7 bankruptcy works best for unsecured debt, or if you just want to get rid of your debt and start with a clean slate. Chapter 13 bankruptcy is more complicated and involves creating a repayment plan that could extend over five years. When filing a Chapter 13 bankruptcy, you can also keep your home and other assets.

When Should I File Bankruptcy?

Simply being in debt is not reason enough to file bankruptcy. If you have a good income, or very little debt, and do not have trouble paying it off, bankruptcy is probably not the wisest choice. However, if your debt significantly outweighs your assets and income, bankruptcy may be a good choice.

How Can I Stop Creditor Harassment After Filing Bankruptcy?

Once you file bankruptcy, your creditors must stop harassing you and you do not need to do anything to stop it. The bankruptcy court will issue an automatic stay, which prohibits any debt collectors or creditors from contacting you and trying to collect on the debt.

What Should I Do if a Creditor Still Contacts Me?

If you have filed bankruptcy and a creditor or debt collector contacts you despite the automatic stay, you should speak to a bankruptcy lawyer. Ask the offending creditor for their name so your lawyer can send them a cease and desist demand letter to stop contacting you. If they still continue to contact you, obtain their names and contact information so your lawyer can sanction them in the bankruptcy court.

Can I Obtain Credit After Filing Bankruptcy?

In most cases, a person can still obtain credit after filing bankruptcy. In fact, many people receive pre-approved credit applications shortly after their debt is discharged. However, you should know that you may have to pay higher interest rates. If you want to improve your credit without taking on higher interest, a secured credit card can help you get your credit score back in good standing.

Can I Keep Current Credit Cards Once I Have Filed?

This will largely depend on your creditor. If you have a balance on your credit card and discharge the debt, the creditor will likely cancel your account. Even if you do not carry a balance on a credit card, the creditor may still cancel the account because they now view you as high risk. It is important to understand though, that keeping a credit card could hurt your bankruptcy case. Other creditors may point to the fact that you have paid down one debt, so you should be able to pay down others, as well. If they are successful with their argument, it could push you out of bankruptcy.

Is All My Debt Discharged in Bankruptcy?

The answer to this largely depends on the type of debt you have, and the type of bankruptcy you are filing. If you are filing Chapter 13 bankruptcy, you may get rid of some of your debt, but you will likely have to repay the majority of it. Regardless of what type of bankruptcy you file, there are still certain types of debt you cannot discharge in bankruptcy. These include child support, student loans, and certain tax debts.

What Property Do I Have to List When Filing?

The bankruptcy laws of the United States require that you fully disclose all of your property and assets regardless of the type of bankruptcy you are filing. Bankruptcy filings are examined by the U.S. Trustee’s office, IRS auditors, and the FBI fraud division. Even if you do not include certain assets within your bankruptcy filing, they will be found. Once they are, not only will it hurt your bankruptcy case but it can also result in charges of bankruptcy fraud. Bankruptcy is a federal felony that has serious penalties for those convicted. Always fully disclose your assets, regardless of how you think they may affect your case.

Who Will Learn About My Bankruptcy?

Most court records are public record and bankruptcy proceedings are no exception. However, you should not let this keep you from filing bankruptcy. Your friends and family will not likely pull up public records to learn about your bankruptcy, so they will only know if you tell them.

Direct notice of the bankruptcy is sent to your creditors and, if applicable, your co-debtors. Bankruptcies are also reported to the major credit bureaus and so, it will remain on your credit

for seven to 10 years. This may mean that employers and creditors may be able to see it if they perform a credit check on you.

Do I Have to Work With a Florida Bankruptcy Lawyer?

You are not required to hire a Fort Lauderdale bankruptcy lawyer when filing any type of bankruptcy and you can represent yourself in court. However, doing so has many disadvantages. Bankruptcy laws in the country sometimes change and one mistake could mean significant consequences for your case. At Loan Lawyers, we have helped thousands of people successfully file bankruptcy and become debt-free and we want to help you, too. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation with one of our skilled attorneys.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

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