How to Negotiate a Commercial Loan Modification

It was at the end of July when Florida Governor Ron DeSantis signed Executive Order 20-180, the order that extended the moratorium on residential mortgage foreclosures and tenant evictions. Unfortunately, the language included in the order clearly shows that the moratorium now only applies to residential properties, leaving commercial property owners at risk of foreclosure or eviction. Commercial property owners have many of the same defenses available in a foreclosure lawsuit, including negotiating a loan modification, but it is not always easy to do. Below are some steps to follow when trying to obtain a loan modification with lenders.

What Is a Loan Modification?

A commercial loan modification, also known as a workout loan, is sometimes available for business borrowers that are unable to refinance an existing loan. A loan modification can change any part of the original loan, including the length of the loan, the monthly payments, and even the original balance. When a loan modification is negotiated carefully, it can help the borrower bring their payments up to date and avoid foreclosure.

Negotiating a loan modification is not easy. The lender must first agree to change the terms of the loan, and then both sides must come to an agreement that is reasonable and fair. In most cases, it is best to work with a foreclosure defense lawyer, particularly when the mortgage is for a commercial property, which is often much more complex.

Collect and Review All Loan Documents

You simply cannot negotiate a loan without knowing the original terms. In the years preceding the financial crisis, many borrowers negotiated loans, without fully understanding the loan’s covenants and conditions. Even if you believe that you fully understand the terms of your current loan, it is still important to review them to refresh your memory about the terms.

For example, is your loan non-recourse? If so, this means that even if the lender starts foreclosure proceedings, they cannot attempt to recover other assets of the borrower. In the event that your loan is non-recourse and the property will not be worth the same value as the current loan, a transfer of the property in the form of a deed-in-lieu of foreclosure may be a better option.

Communicate with the Lender

It is natural for borrowers to want to avoid their lenders when they have fallen behind on payments. However, ignoring communication from your lender, or failing to notify them when you cannot make scheduled payments is never the right option. Lenders do not like to be surprised, especially when the surprise involves a missed payment or a violation of the loan’s terms. Calling them and explaining the situation will not fix the situation entirely, but it will make the lender more apt to work with you to find a solution.

If you have fallen behind on more than one month of mortgage payments, or if you believe you will, it may be in your best interest to write a hardship letter. Explain the situation and when you believe you will be able to bring the loan up to date. Hardship letters are most effective when you have a good payment history on the loan.

Lenders are more willing to work with borrowers than most business owners think. Lenders do not want to foreclose on a property and take the home as collateral. They would much rather keep borrowers in their home and work on a solution for everyone that will help them recover the debt. In the event that the borrower is not forthright with the lender though, they may be more likely to start the foreclosure process.

Qualifying for a Loan Modification

Of course, no matter how much you stay in contact with your lender, you must still qualify for a loan modification in order to obtain one.

When determining whether you qualify, a lender will consider the following factors:

• How proactive you have been in addressing the problem, such as whether you have notified them and attempted to find a solution;
• The extent to which the equity in the property is in the lender’s interest;
• The payment history on the loan;
• Your overall credit history; and
• Your business plan and realistic projections for future revenues that will help you repay the loan.

All of these are important, but the last one may be the factor your lender weighs the most heavily. Lenders do not want to go through loan modification negotiations only to have to start foreclosure proceedings in the near future. As such, they will evaluate whether you will be able to repay the loan in the future and take that into great consideration.

Talk to an Experienced Foreclosure Defense Lawyer

Again, negotiating a mortgage loan modification is not easy, but an experienced foreclosure defense lawyer can help make the process easier.

When working with a foreclosure defense attorney, your attorney will:

• Review your current loan documents and explain the options available to you;
• Assess the terms that will realistically allow you to make payments on the loan while running your business;
• Draft documents to prove to the lender that you will be able to repay the loan;
• Draft a proposal for your lender;
• Negotiate with the lender on your behalf;
• Review the modification documents if the lender agrees; and
• Ensure that you fully understand your rights and obligations.

It is important to speak to an attorney as soon as you know that you will have difficulty making payments, even if you have not yet missed a payment. Speaking to an attorney at this time will give your attorney time to prepare for speaking to your lender, and will allow them more time to assess the best option for your situation.

Our Florida Foreclosure Defense Lawyers Can Help with Your Case

Facing foreclosure is always scary, particularly when the property is essential for your business. If you have missed a payment, or fear you will in the future, our Fort Lauderdale foreclosure defense attorneys at Loan Lawyers are here to help. We understand the options available, will advise on your case, and give you the best chance of securing the loan modification you need. 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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How to Prove a Debt is Not Yours

Debt collectors are required to collect on debt that is past due and to do so, they have many strategies they use. They will call constantly, send letters, list the debt on your credit report, and they may even file a lawsuit against you. All of these actions are difficult to face when the debt is rightfully yours but, when it is not, it is even worse.

Debt collectors may attempt to collect a debt that is not yours for many reasons. For example, a person may have opened an account in your name and failed to make payments on the debt. Or, the debt may have been sent to a debt collection company by mistake. In rarer cases, dishonest debt collectors might even create fake debts in the hope that consumers will just pay them without investigating. It is important that you always verify that the debt is yours before you pay it, and that you understand the steps to take to prove it is not.

Determine if the Debt Is Yours

You may think that just because you have never seen the name of the debt collector before, or because you do not remember incurring the debt, that it is not yours. This is not always true. Creditors often bundle debts and sell them to someone else for pennies on the dollar, so you can receive notification of the debt from another company. There is also always the chance that you simply forgot about the debt and that you are still responsible for paying for it.

Determine if the Statute of Limitations Has Run Out

When a debt collector continues to try to recover debt, it is always important to determine if the statute of limitations has expired, even if you suspect the debt is not yours. In Florida, the statute of limitations, or time limit, for written contracts is five years. Open-ended accounts, such as credit cards, have a statute of limitations of four years.

If the statute of limitations has expired, you may not want to put the same amount of effort into disputing a debt that is not yours as you would if you owned the debt. However, it is still important to dispute the debt if you cannot verify that it is yours. While debt collectors are not likely to take legal action against you if the statute of limitations has expired, the debt will still remain on your credit report for seven years, which will damage your credit.

Disputing the Debt

Once you have verified that you cannot identify the debt, you need to ask the debt collector for proof that the debt is yours. After you have made this request in writing, the debt collector is required to stop contacting you in an attempt to collect the debt. You cannot be contacted by the credit bureau, or receive any phone calls or letters until the debt collector has proven that the debt is yours and that they have the right to collect it.

When working with a debt defense lawyer, they will send a debt validation letter to the debt collector asking them to prove that the debt is yours. A lawyer will also send the letter through certified mail so there is proof of the date the letter was sent and the date the debt collector received it.

Get Copies of Your Credit Report

It is bad enough when your credit is damaged due to debt you actually incurred. Facing the consequences of bad credit for a debt that is not rightfully yours is unacceptable. If you dispute a debt and the debt collector cannot prove that it is yours, it is imperative that you get copies of your credit report to ensure the debt has been taken off your report.

Many people only obtain their credit report from one credit reporting bureau, thinking that they are all the same. Unfortunately, they are not. Some debt collectors will report a debt to one or two credit reporting bureaus, while others will report debt to all three major bureaus. To ensure the debt will not damage your credit, obtain a copy of your credit report from Experian, Equifax, and TransUnion.

If, after receiving your credit report, you find that the debt is still appearing on your report, send a letter to the bureaus reporting the debt. State within the letter that the debt does not belong to you and provide any evidence that supports your argument.

Holding Debt Collectors Accountable

Debt collectors are required to follow specific guidelines and laws when trying to collect on a debt. If you have taken the appropriate steps to dispute a debt and the collector has not stopped harassing you or, worse, has taken legal action against you, it is important to speak with a debt defense lawyer who can help.

You may be able to take legal action against debt collectors who do not comply with the law by filing a lawsuit against them. A lawyer can determine if you have a valid lawsuit and will assist with any important court filings. If a debt collector has tried to sue you, it is especially crucial that you speak with a lawyer. Simply appearing in court and stating that the debt is not yours is, unfortunately, not enough. A lawyer will provide the best legal defense possible and present evidence to strengthen your case.

Call Our Florida Debt Defense Lawyers Today

If you are being harassed by debt collectors or legal action has been taken against you, it is important to speak to a Fort Lauderdale debt defense lawyer, even if you do not think the debt is yours. Ignoring it will not make it go away, and debt will do severe damage to your credit over time. At Loan Lawyers, our Fort Lauderdale debt defense attorneys can advise on your case, help you prove a debt is not yours, and prepare a strong defense when it is. 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 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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What Rights Do Homeowners Have During the Foreclosure Process?

In response to the coronavirus, Florida Governor Ron DeSantis placed a moratorium on foreclosures and evictions in early April. Recently, the Governor extended that order, but there are now concerns that the new order includes very different language from the original. The change in vocabulary has opened the door for broader interpretations, which mortgage lenders and landlords have jumped on so they could move forward with evictions and foreclosures.

Of course, the changed order is of great concern to Floridians, particularly those who were enjoying the protection of the moratorium at this incredibly uncertain time. The greatest concern is that Florida homeowners are now facing an infringement of their rights. So, what rights do you have if you are facing foreclosure? The five main rights you have during the foreclosure process are listed below.

The Right to a Trial

One of the biggest rights homeowners are worried they will lose during this already difficult time is the right to a fair trial. Florida is a judicial state when it comes to foreclosures. That means that lenders must file a lawsuit against homeowners when a mortgage falls into default, and both the lender and the defendant have the right to appear in court and make their arguments.

It is this right that homeowners are so concerned about losing during the pandemic. Florida has become a hot spot for COVID-19 and so, court proceedings are being held via video conferences using a platform such as Zoom. Homeowners and attorneys around the state are questioning whether these virtual meetings will infringe on the right homeowners have to a fair trial.

The concern is that even though homeowners would have a trial of sorts, it is not the same as being in a courtroom. Court reporters cannot always hear witnesses, and it is more challenging to introduce documents as evidence, which is crucial in a foreclosure trial.

The Right to Defend

The purpose of having a fair trial, of course, is so that homeowners have a chance to present a defense that may help keep them in their homes. The only way a homeowner will lose this right is if they leave their home voluntarily before being formally evicted by the lender. For this reason, simply packing up and leaving is the worst action homeowners can take, because they will then forfeit their rights.

People sometimes leave their home after receiving a notice of foreclosure because they think they are out of options. That is not true. There are many defenses to foreclosure, such as requesting a loan modification, or filing Chapter 13 bankruptcy and spreading out the mortgage payments over time, so they are more manageable.

Even when these solutions are not possible, homeowners may still have many defenses that can keep a foreclosure off of their credit history, which will sink their credit score. Short sales and a deed-in-lieu of foreclosure can help keep a foreclosure off a person’s credit report.

The Right to Discovery

The right to discovery is a very important right for homeowners facing foreclosure. Discovery is a main component of any trial and it is during this time that your foreclosure defense lawyer will ask the lender for certain documents and information that could help with your case.

The most important document to ask for during discovery is the note that was signed when you purchased your home. In many cases, the note to a home has been reassigned or sold to someone other than the original lender and the note has subsequently been lost. This may not stop the foreclosure process entirely, but it does present new hurdles for the mortgage servicer. They will have to overcome those legal challenges before they can proceed with the foreclosure of your home.

During the discovery process, your foreclosure defense lawyer will also ask for documents to prove that the lender violated certain foreclosure rules. Violations are much more common than people think; the discovery process is crucial, as this can provide an additional defense.

The Right of Proof

All trials involve some level of burden of proof. In foreclosure matters, the burden of proof is a preponderance of the evidence. In simple terms, this means that the lender has the burden to prove that you more likely than not defaulted on your mortgage or violated some other terms of homeownership that allows them to foreclose. You do not have to prove that your mortgage is up to date or that you followed certain other rules. Although proving that you did not default or break other terms can provide a good defense, you do not have a legal obligation to prove this.

Proving a preponderance of the evidence is a lower standard for the lender’s burden of proof than beyond a reasonable doubt. Still, a knowledgeable foreclosure defense lawyer will know how to refute their arguments, making it more difficult for a lender to prove their case.

The Right to Counterclaim

If at any time during the foreclosure process, you feel as though the lender has violated certain lending rights, you can counterclaim. Counterclaims are very similar to counter-lawsuits that are filed against mortgage lenders or servicers when they have broken certain laws.

Counterclaims work a little differently than the original lawsuit a lender may file. For example, your counterclaim may be heard by a jury instead of one judge that will make all of the decisions, such as in a foreclosure lawsuit. When making a counterclaim, it is crucial to work with a foreclosure defense lawyer who can help you understand what the law says about your case.

Our Florida Foreclosure Defense Lawyers Will Uphold Your Rights

You have many rights when facing the prospect of losing your home. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys know what those are and will ensure that they are upheld. If you are facing foreclosure, 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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8 Questions to Ask Before You Pay a Debt Collector

Being harassed by debt collectors is one of the worst parts of accumulating a significant amount of debt. You may pay them just to keep them from calling, or your circumstances may have changed, enabling you to now pay off the debt.

Regardless of the situation, it is important to understand that debt collectors do not always abide by the law and the rules surrounding debt collection. To ensure that you are not being taken advantage of, and that you are only paying debt that is rightfully yours, it is important to ask the eight questions below before you pay any debt collector.

1. What Is a Debt Collector?

   Many people do not know that when someone calls them to recover debt that is owed, it is often not the original creditor. Most of the time, the person is calling on behalf of a debt collection company, and they have very specific rules they must follow. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from contacting you at certain times, or from contacting other people about your debt.

   It is important to understand, though, that the FDCPA only applies to third-party debt collectors and not original creditors. On the other hand, the Florida Consumer Collection Practices Act outlines many of the same rules and laws, and it applies to both third-party debt collectors and original creditors.

2. When Is the Collector Calling?

   Each year, the Federal Trade Commission (FTC) receives thousands of complaints accusing debt collectors of calling outside of the times they are legally allowed to. There are likely many more than just these, as many consumers may not call the FTC to make a complaint. It is crucial to understand that debt collectors are only allowed to call you between 8 a.m. and 9 p.m. local time. If a debt collection company is calling you outside of those times, they are in violation of the FDCPA and you can take action against them.

3. Do You Want to Make the Debt Collector Stop Calling?

   When debt collectors are not in violation of the FDCPA, borrowers often think there is no way to make debt collectors stop calling. This is not true, though. You can request that the debt collection stops calling and that they only contact you in writing. To do this, you must put your request in writing as well, in the form of a cease and desist letter. You should use certified mail to send the document so you can track it and confirm that the debt collector did in fact receive it.

   It is important to know that one cease and desist letter will only apply to one debt collector. If multiple collectors are calling you, a letter for each one is required. If you send a debt collector a letter and they then sell your debt, you will have to send a letter to the collection company that purchased your debt.

4. Is the Debt Yours?

   Many people take it for granted that if a debt collector is calling them, they owe the debt. However, one of the most common complaints about debt collectors is that they attempt to collect the wrong debt from the wrong person.

   Any time a debt collector calls, you should ask them to verify that the debt does belong to you. This is your right, and you should never pay a debt before a debt collector has verified it. To verify that the debt is yours, a collector must provide you with documentation from the creditor that initially held your debt. It is just as crucial to understand that you only have a certain amount of time to ask the collector to verify the debt.

5. Has the Statute of Limitations Expired?

   In Florida, the statute of limitations on most consumer debts is five years. Debt collectors are hopeful that you will not be aware of this law and, therefore, will not take the necessary steps to protect yourself. If five years or more has passed since you accrued the debt, collectors are prohibited from calling you or otherwise trying to collect on the debt. However, if you have made a payment on the debt, that can toll the statute of limitations and the time limit will begin again on the date of your payment.

6. Has the Debt Collector Upheld Your Rights?

   You have many rights when it comes to debt collection, and debt collectors must ensure that these rights are upheld. As such, they cannot request that you pay more than what you actually owe, and they cannot threaten you with a lawsuit if they have no intention of suing you. If a debt collector has infringed on your rights, you can file a lawsuit against them to recover actual damages and, potentially, even punitive damages.

7. Should You Repay the Debt You Owe?

   There are some instances in which you may be tempted to forget about the debt entirely and not repay it. For example, if the statute of limitations has expired and debt collectors have stopped calling, you may think it is a good idea to not repay the debt. After seven years, the debt will also likely be removed from your credit report, which means it will not negatively affect your credit score. However, in most cases, it is a good idea to repay any outstanding debt that you owe. Seven years is a long time, and paying it back as soon as possible will help get you on the right track sooner.

8. Do I Need a Florida Debt Defense Lawyer?

   The answer to this question is that it depends. If you have debt and a collector is infringing on your rights, it is important to speak to a Fort Lauderdale debt defense lawyer who can hold them accountable for upholding your rights. If a debt collector has taken legal action against you, it is even more important that you speak to an attorney. At Loan Lawyers, we have represented thousands of people in debt collection lawsuits, and have the necessary experience to help you win your case, too. 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 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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Things NOT to Do Before Filing for Bankruptcy

Making the decision to file for bankruptcy is always a difficult one. Once you have determined that it is your best option, it is critical to avoid some common mistakes both before you file, and throughout the process.

Aside from the enormous amount of paperwork involved, filing for bankruptcy requires a great deal of preparation. The actions you take–or fail to take–before filing can have a tremendous impact on your bankruptcy case.

What Not to Do Prior to Filing Bankruptcy

Some of the most common mistakes people make when they file for bankruptcy include:

• Keeping your banking accounts at the same institution you have a personal loan: In Florida, banks have the right of setoff, which means they can take money from the banking accounts you have opened with them to pay off any loan they hold when you get behind on payments. Even if you are not filing for bankruptcy, it is a good idea to move your savings and checking account to another banking institution.
• Keeping your banking accounts with the wrong financial institution: Even if you do not have a loan with the same bank you use for your savings and checking account, you should still research the actions your bank will take if you file bankruptcy. For example, Wells Fargo is well known for freezing the accounts of clients who file for bankruptcy, and this could hurt you during the process.
• Not timing the filing correctly: When you file for bankruptcy, you must detail all of your bank accounts and the amounts in them. If you file at a time when your account is quite high, you will have to report that amount as an asset, even if you know there are many automatic deductions and withdrawals in the near future. Wait until your bills are paid, and then file bankruptcy.
• Forgetting about your tax refund: The bankruptcy courts want to know all of the assets you have and, if you do not list them all, including a tax refund, it could hurt your case. Even if you have not received the refund yet, still disclose the amount and use any exemptions applicable to keep it from being seized as part of the bankruptcy process.
• Getting rid of assets just before filing: You should hold off on giving, selling, or transferring title of any assets at least six months before filing, and ideally for a full year before. The court may suspect that you are trying to retain those assets while filing for bankruptcy, and you may even end up facing charges of bankruptcy fraud.
• Paying off personal loans before filing: Many people do not only have loans with financial institutions, but they also borrow money from friends and family members. To avoid the embarrassment of admitting they are having financial institutions, people often pay off these personal loans before filing. However, all creditors are treated equally in bankruptcy court, even those you have a personal relationship with. Do not pay off any debts, and do make sure you include all debts in your bankruptcy forms, even loans held by friends and family members.
• Applying for a home equity loan to avoid bankruptcy: You may think it is a good idea to borrow against your home so you can pay off your debts and avoid bankruptcy. This is usually a mistake. If you cannot repay the loan, you may end up losing your home. If you file bankruptcy, on the other hand, you may be able to use exemptions to protect your home, or you can file for Chapter 13 bankruptcy, which may allow you to keep your home.

While these are the most common mistakes people make before they file bankruptcy, there are also some you want to avoid once the process has already started.

What Not to Do After Filing Bankruptcy

A Florida bankruptcy lawyer will help ensure you do not make mistakes during the bankruptcy process.

The most common of these mistakes are as follows:

• Including inaccurate, dishonest, or incomplete information: Florida law requires you to disclose all information related to your income, assets, financial history, debts, and expenses. If you are careless when filling out this information and miss a pertinent fact to your case, your debt may not be discharged and you may not be able to correct it later. Worse yet, if it is found that you knowingly withheld information, you could face criminal charges for perjury.
• Accruing more debt before filing: It is natural to think that because your debt is going to be discharged, you should apply for another credit card or loan and rack up another few hundred dollars. The bankruptcy court will not look kindly on this and, seeing that you accrued more debt just prior to filing, may not discharge that debt.
• Selling your home before the process is complete: Selling your home may be an issue in certain bankruptcy cases, such as if you are filing Chapter 13. This type of case will extend over three to five years, and selling your home for a major profit may hurt it. If you are filing Chapter 7, selling your home may not hurt your case to the same extent, but it is important to speak to a lawyer to ensure you are not making a mistake.
• Not showing up for your hearing: If you fail to attend your bankruptcy hearing, there is a good chance that the judge will dismiss your case. Your debts will not be discharged, and you may have to start the entire process over again. Always attend the hearing and bring photo identification and proof of your Social Security number.

Our Florida Bankruptcy Lawyers Will Ensure You Do Not Make Mistakes

The best way to avoid making some of the most common mistakes before and during the bankruptcy process is to speak to a Fort Lauderdale bankruptcy lawyer. At Loan Lawyers, we have experience helping thousands of Floridians throughout the bankruptcy process, and we want to put that experience to work for you. 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 to see how we may be able to help you.

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Debunking the 12 Biggest Myths About Debt Collection

For many people, one of the worst aspects of being in debt is the fact that debt collectors call constantly. Debt collectors have become so abundant–and so earnest in their pursuit of recovering debt–that over the years, myths and misconceptions have abounded surrounding debt collectors and what they are and are not allowed to do. Myths surrounding the responsibilities of borrowers, and the actions they should take or not take, are also very common.

Below are the 12 biggest myths surrounding debt collection, and the truths behind them.

1. Debt Collectors Only Call About Legitimate Debts

   It is natural to assume that if a debt collector is calling you, the debt they want to recover is legitimate. Making this assumption is dangerous, though, and could place you further in debt if you repay a debt that is not yours. Debt collectors do not always receive the correct information and, in some cases, they have been known to even act dishonestly. Before paying any debt, it is important to request validation of the debt–this is your right under the law.

2. Ignore Your Debt and it Will Go Away

   It is true that Florida has a statute of limitations on debt of five years. However, this only means that once five years have expired, debt collectors can no longer try to take legal action against you, such as filing a lawsuit. It does not mean that debt collectors can no longer call you, or that the debt is erased from your credit report. If you want to be truly free of the debt, you must pay it.

3. Debt Collectors Do Not Take Legal Action After the Statute of Limitations Expires

   So, the five years have passed since the debt and now you believe you are free and clear because the law prevents the debt collectors from taking action. This may be true, but debt collectors are not always respectful of the law, and will sometimes try to take action even though they know the debt has expired. Also, if you make a payment it may restart the clock on the statute of limitations, which means the debt collector may be able to take legal action against you.

4. A Cease and Desist Letter Will Make Debt Go Away

   If you work with an attorney that sends a debt collector a cease and desist letter, it only means that they are prohibited from calling you directly. Again, the debt will remain on your credit report and you are still responsible for paying it. Additionally, if your debt is assigned to a new debt collector, the cease and desist demand will no longer apply.

5. You Can Remove a Debt from Your Credit Report by Paying It

   After you pay a debt, the debt collector is only required to report the payment to the credit reporting bureaus. They are not required to remove the debt from your credit report right away. Paying debt will definitely help improve your credit score, but you may not see the immediate results you are hoping for.

6. Making Payments Means Debt Will Stay on Your Credit Report Longer

   Most debts can only stay on your credit report for seven years, regardless of whether you pay it in full or not. Making payments on the debt does not change that time limit. The seven-year timeline starts at the date of the delinquency, not the date that you made a payment, so it will remain the same no matter how much of the debt you repay.

7. You Can Tell Debt Collectors to Stop Calling You

   If you want debt collectors to stop calling you completely, you must tell them so in writing. A verbal statement is only considered valid if the debt collector is calling you at work and your employer has a problem with it. If you tell the debt collector that they are calling at an inconvenient time, they can still contact you but they must do so at a different time.

8. Debt Collection Calls Stop if You Make Partial Payment

   If you owe a debt, you are expected to pay it in full. Making a partial payment may keep the debt collectors at bay temporarily, but if you do not fully repay the debt, they will start calling again at some point.

9. Settling a Debt Improves Your Credit Score

   Debt collectors will sometimes agree to settle your debt for a lower amount and this is often a great option for borrowers. However, settling your debt will not improve your credit score right away. You will have a zero balance on the debt, which is good, but only making payments on the rest of your debt, coupled with time, will improve your credit score.

10. You Can Go to Jail for Unpaid Debt

    Debtors’ prisons have not existed in the United States for nearly two centuries. You cannot go to jail for unpaid debts, and debt collectors cannot threaten to send you to jail for unpaid debt.

11. Debt Collectors Will Garnish Your Wages

    Wage garnishment is one option debt collectors have to recover the amount of debt you owe. However, there is a strict process they must follow to do it. They must first file a lawsuit against you–then they must win. A debt defense attorney can provide a defense for your case that results in a favorable judgment for you, and that prevents wage garnishment.

12. You Can Pay the Original Creditor Instead of the Debt Collector

    Many people prefer to repay the original creditor instead of the debt collector that keeps calling. This is a mistake and will only keep the debt on your credit record longer than necessary. In most cases, the creditor has sold the debt to a debt collector, so they no longer own it and cannot accept payment on the account. In many instances, the creditor and debt collector even have an agreement that prevents the creditor from collecting payment.

Our Florida Debt Defense Lawyers can Dispel More Myths

While there are many myths surrounding debt collection, the above are only a few of the most common. If you are having trouble with debt, or a collector has already taken legal action against you, our Fort Lauderdale debt defense lawyers can help. At Loan Lawyers, we have defended thousands of people in debt lawsuits, and we want to put our experience to work for you. To learn the truth about debt collection lawsuits and how we can help, call us today at (954) 807-1361 or contact us online for 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 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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Facing Foreclosure? Learn Why You Need an Attorney

If you are facing foreclosure, losing your home may be taking up most of your thoughts and you might not even be thinking about speaking with a foreclosure defense lawyer. However, an attorney is a great help when you are going through this process, and may even help keep you in your home. Below are the many different ways an attorney can help you if your lender or mortgage servicer has started the foreclosure process.

What Is Foreclosure?

Many people understand that the foreclosure process means that they have been unable to make their mortgage payments, so the lender starts proceedings to take ownership of the property. Although this is fairly common knowledge, it is also important to understand that foreclosure is also a legal process. Lenders cannot simply decide to foreclose on your property and force you to vacate your home immediately. Foreclosure is sometimes a lengthy process as well. As such, it is important to speak to a lawyer and understand how they can help you through it.

The Foreclosure Timeline

In Florida, the foreclosure process begins when the lender or mortgage servicer files a foreclosure lawsuit with the court and serves the borrower with a complaint and summons. You must respond to the complaint and summons within 20 days of being served, or the lender may secure a default judgment against you, meaning you may lose your home without ever being given the chance to defend yourself. An attorney will ensure that you meet this deadline and start preparing your defense right away.

After you have responded to the complaint and summons, the case will then go through the discovery phase. During this phase, each side is allowed to ask the other party for information, and this is one area in which having an attorney is especially helpful.

The discovery process is complex and involves a lot of legwork. You also need to know what information you want to request from the other side and, without a legal background or in-depth knowledge of the foreclosure process, it is very difficult to request the right documents that will help you with your case. An attorney will understand what information to seek and will obtain the information in a timely manner so the discovery process does not unnecessarily hurt your case.

Once the discovery phase of the case is complete, a judge may use a summary process to make a decision on the case. In this instance, the result could be a final judgment in favor of the lender, which means you will lose the case and your home will be sold.

If the case does not go through the summary process, the case will go to trial, and this is when you will need a lawyer the most. Without an attorney present, you will be expected to understand the legal system and the process of the trial. You will also have to appear in a courtroom, and deal with the pressures that come with it. The other side’s attorney will most likely try to use intimidation tactics to railroad you and hurt your case.

An attorney will not be intimidated during any point of the trial, and will understand the legal system. Very few people that take a case to trial without the help of a lawyer are successful and they typically end up losing their case, and their home. A lawyer can also help you come to an agreement with the lender or mortgage servicer either before the trial begins, or while it is ongoing. For example, a lawyer may negotiate with the lender on your behalf to agree to a payment arrangement in which you can make up the missed mortgage payments over a period of several months.

Regardless of whether the final judgment in your case is made through the summary process or through a trial, after the decision is made, there is very little that can be done. Having an attorney by your side during this time is also very helpful because they can help you appeal the decision and make motions that may help keep you in your home.

How a Lawyer Can Help with Your Foreclosure Case

Throughout the foreclosure process, there are a number of ways an attorney can help with your case. These include:

• Identify if your case has been filed improperly;
• Identify and prepare meaningful and procedural defenses;
• Identify when your mortgage lender violates the Florida Unfair Lending Act;
• Identify times when the mortgage lender is in violation of other fair lending violations;
• Determine whether or not your lender can prove that they own the loan;
• Prove that you are in the military and, therefore, that the ownership of your home is protected under the Servicemembers Civil Relief Act;
• Bring the foreclosure process to a close in a cost-effective manner;
• Assist you with staying in your home until the foreclosure process is finalized, and perhaps even after;
• Identify when your lender or mortgage servicer is dual tracking, which is prohibited by law;
• Negotiate with the lender or mortgage servicer for a loan modification;
• Assist you with selling your home at a fair price so you can repay as much money as possible to the lending company;
• Assist with rent collection while a rental property is going through the foreclosure process;
• Assist you in filing for Chapter 7 or Chapter 13 bankruptcy; and
• Provide a valid defense when there is evidence that you have been making mortgage payments and that the lender has mismanaged them.

Essentially, a lawyer will walk you through the entire process and give you the best chance of remaining in your home.

Call Our Florida Foreclosure Defense Lawyers Today

If you have fallen behind on your mortgage payments and are now facing foreclosure, our Fort Lauderdale debt defense lawyers are here to help. At Loan Lawyers, we have helped thousands of homeowners stay in their homes, and we want to put our experience to work for you. 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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