Loan Lawyers

Thursday, 5 November 2020

What to Do If You Are Struggling to Pay Your Mortgage

If you’re having problems paying your mortgage, help is within your reach.

Take heart knowing you’re not the only one scrambling to meet debt payments on the home you own – especially during the COVID-19 era. The percentage of homeowners at least one payment delinquent jumped 4 percentage points in the second quarter of 2020, when the economic impact was just beginning, according to the Mortgage Bankers Association.

The problem could not be more apparent, said Marina Walsh, vice president of industry analysis in MBA’s research and economics department. “The nearly 4 percentage point jump in the delinquency rate was the biggest quarterly rise in the history of MBA’s survey,” dating to 1979.

If you have a government-backed mortgage, you may find a safe harbor in the federal CARES Act, signed into law on March 27. It stands for the Coronavirus Aid, Relief and Economic Security Act. You may get some relief at the state level as well. Be aware, however, of the pitfalls. Read on.

Applying for such accommodations is not for the timid. Your credit is at stake. Ultimately your ownership of your home is at stake as well.

Call Loan Lawyers, a Foreclosure Defense, Debt Defense and Bankruptcy Law Firm. We serve Fort Lauderdale, South Florida and beyond. We’ve helped 5,000 families get out of debt and look forward to helping you, whether your mortgage is privately held or backed by the federal government.

Loan Modification

If you’ve missed payments and are trying without success to catch up, you may not have the funds to pay the full amount you owe. In this instance, a loan modification agreement may be a workable option. While it is possible to achieve a modification directly with your mortgage servicer, you may get more favorable terms through the experienced Loan Modifications Attorneys at Loan Lawyers.

A loan modification is an agreement between you and the mortgage company to change the original terms of the mortgage. This includes the payment amount, length of the loan, and interest rate. The purpose is to prevent foreclosure and keep you in your house by lowering the payments so you can afford them – without having to come up with the total amount you’re behind.

A modification may be an option if:

You are ineligible to refinance due to delinquent payments in the past 24 months.
You are facing a long-term hardship that impacts your ability to pay.
You are several months behind on your mortgage payments or likely to fall behind soon.
You have the ability to begin making modified payments.

Repayment Plan

Say you’ve gone through the process and achieved a loan modification, then fall behind again. Can you get a second modification?

Yes, according to Lutheran Social Services, a nonprofit service. Statistically, you’re less likely to get a second loan modification if you’ve had a first. It is possible though. In fact, the majority of homeowners currently applying for modifications have already had some kind of work-out option and some do get approved.

As long as you want to keep the home and have the stability and income to afford reasonable payments, there is no reason to not apply. You may find the process less difficult since you’re been through it before.

Forbearance

Spurred by the CARES Act, many mortgage companies are offering to help – but it typically comes in the form of a forbearance, not payment forgiveness. Forbearance is when the mortgage company allows you to temporarily halt making payments, typically to help borrowers in time of economic crisis.

The benefit to you is not having to make a payment for a few months. Sounds too good to be true? It is. As soon as the forbearance period is over, the bank typically wants all missed payments in full immediately, or they’ll start foreclosure proceedings.

Short Sale

A short sale, or pre-foreclosure sale, is when the bank agrees to allow your house to be sold for less than what you owe. The “short” in short sale refers to the payoff being less than what is owed, not how long it takes to complete the process. In fact, short sales can be quite lengthy, averaging 3-9 months to complete, sometimes longer.

Deed in Lieu of Foreclosure

Most people want to avoid foreclosure if possible. This plan lets you avoid the foreclosure process by signing over the deed to the home to your servicer. The home will then belong to the servicer.

The primary disadvantage to you as the homeowner is the loss of your home, any income it may generate and your investment in it. It is also taxable.

Bankruptcy as an Option to Stop Foreclosure

If you’ve exhausted all other options, filing for bankruptcy may delay foreclosure in the state of Florida. Filing for Chapter 7 or Chapter 13 creates an automatic stay, which means that creditors may not continue trying to collect what you owe. This could delay the sale of your home for three or four months.

In that time period, it may be possible for you to gather the funds to satisfy the loan. On the other hand, the lender could file a motion to lift the stay.

Another option is to file for Chapter 13, which prompts consumers to pay off debts through a repayment plan that spans years. This could enable someone to keep his or her home.

Our Experienced Attorneys at Loan Lawyers Can Help

Bankruptcy and foreclosure proceedings are typically complex and should be handled by a qualified professional like Loan Lawyers. Act now, before filing deadlines have passed, adding unnecessary complications. Learn how the CARES Act may ease your situation as it relates to the pandemic.

Loan Lawyers is a Foreclosure Defense, Debt Defense and Bankruptcy Law Firm. It’s our mission and our passion to help save your home, eliminate debt and restore your peace of mind. It all starts with a phone call. Reach out to us now.

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Wednesday, 4 November 2020

Is it Illegal for Debt Collectors to Text You?

People know that when they owe any amount of debt, a debt collector may call them. While these phone calls are not usually welcome, they are, if nothing else, at least expected. However, technology today has changed, and debt collectors have more options for contacting debtors. The question these types of options often raise is whether or not it is illegal for debt collectors to text individuals.

So, if a debt collector has tried to collect on debt by text, are they breaking the law? The answer is not yet clear. Advanced technology has created a number of gray areas in the law, and texts regarding debt collection fall into that category.

Laws Regarding Texts Collecting on Debt

Debt collectors have many laws they must follow. Both the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act of 1991 (TCPA) outline the rules debt collectors must follow when they are trying to recover a debt.

Under these laws, debt collectors must indicate that they are a debt collector any time they communicate with a person. This rule holds true even when the debt collector is communicating with a third party. Debt collectors must also state that they are trying to collect on a debt any time they send any form of communication. However, it is unlawful for debt collectors to discuss the nature of the debt with a third party.

For example, a debt collector may send a text to someone saying that they are from ABC Debt Collection Corporation and that they are trying to recover a debt from a debtor. If they know they are sending the text to the borrower themselves, they may also discuss the nature of the debt, such as when it was incurred and the amount. If the debt collector is texting a third party, on the other hand, they only have to state that they are texting on behalf of ABC Debt Collection Corporation and that they are trying to recover a debt from a certain person. They cannot provide any information other than this, such as the type or amount of the debt.

These laws are fairly straightforward when debt collectors are calling people over the phone, or sending them communication through the mail. When it comes to texting people, there are a number of unique issues that are raised that could indicate the debt collector is breaking the law.

Issues Raised when Texting Over Debt Collection

Attempting to collect on a debt becomes very tricky when it does via text messaging.

Text messages are typically very short, with some carriers placing a limit of 160 characters, while some provide a much larger limit of 1600 characters. Still, others set limits at 70 characters. In some instances, this could make it impossible for a debt collector to identify themselves, the company they work for, and other information with such limits on the number of characters.

The other challenge that comes with texting debtors to collect on a debt is that there really is no way to ensure the text is being sent to the right person. People change cell phones quite frequently and, when they do, they sometimes change their number as well. If a debt collector sends a text message to the wrong person, they have inadvertently broken the law because they have wrongfully notified a third party about the debt.

Even when a debt collector is certain that they have the right phone number, many people also share cell phones with family members or even roommates. When this is the case and a debt collector says too much about a debt, they may again inadvertently tell a third party about the debt and break the law.

Sending text messages regarding a debt is clearly fraught with issues. The issue is not widespread in Florida just yet and hopefully, it never becomes an issue. A California debt collection company was fined $1 million for violating the FDCPA after sending text messages regarding a debt to a customer. That news story may just be enough to deter other debt collection companies from making similar moves.

Laws on Debt Collection Communication

Although there may not be any specific law governing debt collection and text messages, there are other very clear laws that dictate how and when debt collectors may contact you. These laws are firm and hold true regardless of whether a debt collector is calling you on the phone or via text message.

The law on debt collection communication states:

Debt collectors can only attempt to contact you between 8:00 a.m. and 9:00 p.m. in your own local time zone, even if they are calling from outside of that zone.
Debt collectors must inform you that they are a debt collector.
Debt collectors cannot reveal certain aspects of your debt to any other third party, with the exception of your attorney and your spouse.
They cannot contact you repeatedly with the intention to harass you or annoy you into paying the debt.
If a debt collector knows you have an attorney, they are only allowed to contact your lawyer. They are not allowed to contact you directly.
Debt collectors cannot use profane or abusive language, threaten you, or claim they will take legal action when they have no intention of doing so.
If you send a debt collector a letter stating that you want them to stop contacting you, they must comply with your request. A letter will not prevent debt collectors from taking legal action.

One of the best ways to stop debt collectors from contacting you is to hire a debt defense lawyer.

Our Florida Debt Defense Lawyers Can Help with Your Case

If debt collectors have called you repeatedly, spoken to a third party about your debt, or taken any other illegal actions, our Fort Lauderdale, FL debt defense lawyers are here to help. At Loan Lawyers, we know when debt collectors have violated the law, and we will hold them accountable when they do. Call us today at (954) 807-1361 or contact us online to schedule a free consultation so we can advise you of your options.

Contact us for a free legal 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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Friday, 23 October 2020

The Housing Crisis of 2008 vs. The Pandemic Foreclosure Crisis

The COVID-19 pandemic seems a bit too familiar for Floridians. At a time when people are losing their jobs, either permanently or temporarily, more and more people are finding that it is becoming nearly impossible to pay their mortgages every month. Experts in the field say that in Florida specifically, they are expecting a 200 percent increase in the amount of foreclosures they saw prior to when the pandemic hit.

It is understandable why Florida residents are worried. Just as residents in the state seemed to be getting back on their feet, the pandemic dashed their hopes. However, for those worried that it is going to be a repeat of what happened over one decade ago, there is still hope. Even though foreclosures in the state will rise, this crisis is going to differ vastly from the last one.

A Look at the Numbers

When facing yet another crisis, it is easy to imagine the very worst scenario. However, a look at the numbers can bring encouragement to homeowners in Florida, and throughout the country. A study conducted by Attom Data Solutions predicts that at least 200,000 Americans will default on their mortgage in the next year. If the economic downturn hits the worst-case scenario, that number could reach as many as 500,000 homeowners. Over the next two years, the company is forecasting an increase of 70 percent in foreclosures.

Those numbers do not sound good, but when compared with the years following the Great Recession, they are not so bad. In the first six months of 2010, 1.65 million American homes fell into foreclosure. Compare that with the first six months of 2020, which included three months of the pandemic, when 165,000 homeowners were hit with foreclosure actions. Even if the number of homeowners defaulting on their mortgage skyrockets, the numbers are still likely to remain far under what was seen in the Great Recession.

So, with millions of people suffering from this economic downturn, and unemployment at an all-time high, why is there hope that the crisis due to the pandemic will be so much better than it was during the Great Recession?

A Lack of ‘Liar Loans’

In the years leading up to the housing crisis, lenders were practically giving homes away. Their main focus was to keep a continuous stream of profit coming into their institutions and the more people they loaned mortgages to, the more profit they received, even if some of those homeowners defaulted on their mortgages. As such, they did not go to great lengths to ensure that borrowers could pay back their loans and that has resulted in a number of what have been dubbed ‘liar loans.’ When the housing market crashed, people had very little incentive to pay their mortgage and keep their homes.

Many of the laws regarding borrowing and mortgages have changed today, and lenders are much more careful about who they approve for a loan. Homeowners cannot get into the type of trouble they once did simply because lenders are more careful about who they loan to. That in itself will help ensure the current crisis is not as dark as the housing crisis of 2008.

Government Response

During the Great Recession, experts say that the government response was slow. Most homeowners relied on unemployment insurance, which was very little when compared with the mortgages they had to pay, along with their other expenses. The government did create programs to help homeowners, such as HARP and HAMP, but they were not fully operational until two years after the recession was in full swing. At that time, the government also imposed strict regulations on mortgage lending, which may not have provided immediate help at the time, but will play a great role in the current crisis homeowners are facing.

In addition to that, all levels of government today have stepped in to help homeowners during this difficult time. People that lost their job were given an additional $600 a week on top of the benefits they were receiving from unemployment. Federally-backed mortgages were given generous forbearance times, and private lenders soon followed that lead, helping homeowners regardless of what type of mortgage they had taken out. Governors across the country, including right here in Florida, placed a moratorium on foreclosures and evictions so people were not kicked out of their homes at the same time they were being told that was exactly where they should remain.

Different Banking Practices

Banks have changed the way they do business since 2008, and that extends far past allowing people to take out mortgages without first ensuring borrowers could repay the loan. Today, banks seem much more willing to work with borrowers to modify loans and provide other alternatives that will help homeowners avoid foreclosure. No one wants a repeat of the housing crisis of 2008, and that includes the banks that provide the loans.

Higher Home Values

One of the biggest problems that led to the housing crisis of 2008 was that so many homes were underwater, meaning that homeowners owed more on their mortgage than what their home was worth. It has been over 10 years since that crisis, though, and during that time, home prices have been increasing, and holding steady. Bidding wars have even erupted around the country, even amid the pandemic. This is not only good news for the market, but also for homeowners that get into trouble with their mortgage. Instead of having the bank foreclose, they can sell the home and walk away without any debt, and perhaps even a little bit of profit.

Are You About to Lose Your Home? Our Florida Foreclosure Defense Lawyers Can Help

While it is true that homeowners have many reasons to be encouraged during this particular crisis, the sad fact is that some people are still going to fear losing their homes. If you are facing foreclosure, our Fort Lauderdale foreclosure defense attorneys at Loan Lawyers are here to help. We know the defenses to foreclosure, and how to negotiate with the banks to help you keep your home. Call us today at (954) 807-1361 or contact us online 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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14 Quick Tips for Paying Off Your Student Loans

Student loan debt is at an all-time high and it is something both current and former students continue to struggle with. At times, the situation may seem hopeless. Fortunately, it is not. For those feeling as though student loans are something they are just going to have to live with for the remainder of their lives, there is hope.

Follow the 14 quick tips below and you may just be surprised at how quickly your student loans are paid off in full.

Use Autopay

Using autopay is a great way to ensure your student loan payment is paid on time every month. This will not only help ensure that you do not incur additional interest charges, but it will also help if you want government assistance with your loan in the future. There are many state-run programs that help with student loans, but you will only qualify for them if you have not missed a payment.
Avoid Interest at All Costs

Many students are amazed at how quickly a small student loan can balloon into a much larger debt simply due to interest. Paying off your student loans once you are out of school is a great way to avoid interest accumulating on your loans. You can also start paying your loans when you are already in school, and make monthly payments even during the grace period so that it is not added to your overall balance.
Pay More than the Minimum Amount Each Month

Just like credit cards, paying more than the minimum amount due each month is a great way to pay off your student loans fast. Not only will avoid that interest that is the bane of so many students, but you will also slowly chip away at the principal, too.
Use Grace Periods Wisely

It is easy to sit back during the grace period of your loan and just be happy that you do not owe anything yet. However, even if you only pay $30 a month during the grace period, this will add up to huge savings in the end, and help you get a head start on that repayment plan.
Use Your Payday Wisely

Of course, the most obvious way to use your paycheck to pay off your student loan is to simply make a small payment every time you get paid. However, you can take it one step further than that. On the day you get a paycheck, put whatever is left in your bank account (from the previous paycheck) towards your loan. Even if it is a small amount, it will add up in the end.
Use the Snowball Effect for Multiple Loans

Many people have more than one student loan. When this is the case, the snowball method can do a lot for your morale. The snowball method means paying off the loans with the lowest interest rate first, and then focusing on the higher-interest loans. Although you want to ensure you are still making minimum payments on all of your loans, paying off the smaller ones first can be a real boost that makes you want to keep going.
Use 401(k)s Wisely

Your 401(k) may just be the big boost you need to pay off your loan. Many people are hesitant to do this due to penalties for early withdrawals and because they understand a 401(k) is an investment in their future. Still, while you are drowning in debt, they can be a lifesaver. In March of 2020, the Senate approved a package that allows people to take out up to $100,000 from their 401(k) as a hardship withdrawal without any penalties. Just make sure that immediately after withdrawing it, you start making a plan for future investments, as well.
Use Your Tax Refunds

Many people think of their tax refunds as ‘found money.’ While you do not necessarily need to abandon this train of thought, use the money for something that will help you, such as paying back your student loans, rather than for something that will not give you something back in return.
Make a Budget

This one should go without saying, but too many people still do not have a proper budget in place. Create a budget and most importantly, stick to it. Whatever money you have left can go towards your student loans.
Do Not Use a Consolidation Company

Any company that promises to consolidate your loan–and is not part of the federal program that does it for free–is likely a scam that will only cost you money in the end. Do not fall for it and know that any company that charges a fee for their application (usually around $500,) is not legitimate.
Do Not Ignore Your Payments

Even if you cannot make a payment, call your lender or loan servicer. They are much more willing to work with people that are honest about their inability to pay than those that try to run from the problem.
Check with Your Employer

If you work for a non-profit or for the government, you may be eligible for the Public Service Loan Forgiveness Program. After making much lower payments for a number of years, your loan is completely forgiven.
Refinance the Loan

Many people think that because they have taken out a loan, they are stuck with it. That is not the case. Refinancing the loan can give you a much lower payment, which will help you put any extra money towards the loan anyway and pay it off that much quicker.
Ask for Help

If you have student loans, the chances are that your friends and family members do, too. People do not generally want to talk about their money problems, but it can be a great help to do so. When you and your loved ones put your heads together, they may give you even more tips and advice for paying them off faster, and you might be able to offer some, too.

Call a Florida Debt Defense Lawyer if You Are in Trouble

Unfortunately, the quick tips above are not always enough to keep people out of trouble when it comes to their student loans. If you are suffering from student loan debt and a lender has taken legal action against you, our Fort Lauderdale debt defense attorneys at Loan Lawyers can help. We know the defenses available in these cases and we will put our experience to work for you. Call us at (954) 807-1361 or contact us online to schedule a free consultation and to learn more about how we can help.

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Thursday, 15 October 2020

Tips When Choosing Your Student Loan

In the United States, there are 45 million borrowers that owe almost $1.6 trillion in student loan debt. That number represents the second-highest category of consumer debt, with only mortgages exceeding it. A recent study titled “National Financial Capability Study” conducted by the Financial Industry Regulatory Authority’s Investor Education Foundation shares some alarming information: almost 50 percent of Americans regret choosing the college they did, wishing that instead, they’d opted for a school that was more affordable.

So, if you are about to head off to school, or your semester has already started and you have realized you need financial help, how can you avoid this same regret? You may not have to choose a different school. The answer may lie in simply knowing a few tips when choosing your student loan.

Understand How Much You Need

You may know how much it will cost for tuition, textbooks, housing, and other expenses that will add up as you attend school. However, this does not necessarily reflect how much you will need in a student loan. Consider what you can use from grants, scholarships, and any financial support your family can provide. Subtract any funding you already have available and deduct it from your total costs. This is how much you will need in student loans, although you may want to apply for an amount slightly higher to cover unforeseen costs.

Submit the Free Application for Federal Student Aid

To receive federal financial aid and review your options, you must fill out the Free Application for Federal Student Aid (FAFSA). You must fill this form out depending on the deadline, which varies by state and year, so determine when that is. If you have recently graduated from high school, or you are still in your senior year, you will have to speak to your parents to obtain some information required for the FAFSA. This includes their income and other general information. The Department of Education also offers loans available to parents.

You will also need to speak to your parents if you are taking out a private loan. Most students do not have enough income or a high enough credit score to take out a loan on their own. As such, your parents will likely need to cosign for yours. Even if you do not think you need a loan right now, still speak to them about it before you go to school in case the need arises in the future.

Understand the Options Available for Loans

After you fill out the FAFSA, you will receive an award letter outlining the federal loan options that are available for you. At this point, you can determine what loans to accept, as well as the amount. The types of federal loans you may be eligible for include direct subsidized and unsubsidized loans, and Direct PLUS loans.

Subsidized loans are an attractive option for students because the federal government will cover the cost of interest while you are in school and during certain periods of deferment, if those are available. Unsubsidized loans do not offer this protection, while direct PLUS loans are only offered to parents and graduate students.

Federal loans provide many more protections and benefits than private loans, so they are always a good starting point when choosing the right loan for you. For example, if you take out a federal student loan and then later work in the public sector, you may be eligible for loan forgiveness under the Public Service Loan Forgiveness program. Federal student loans also offer a number of repayment plans, deferment or forbearance options, and usually have fixed interest rates.

Explore Options for Private Loans

While federal student loans will come with many benefits, you may also have to research the options you have for private loans. This is most often the case in the event that a federal loan will not fully cover your education costs. When doing your research, remember that private loans are often more difficult to secure and a lender will check your credit score before determining if you qualify. If you have a low credit score, or no score as many people graduating from high school do not, you may need to have someone co-sign your loan.

Research the Costs of the Loan, and the Options Available

You may think that choosing the loan that provides you with the most amount of funding is the best one, but that is not always the case. There is a lot that goes into a loan document and to ensure that you are receiving the best one for you, it is crucial that you perform research on the loans.

Regardless of whether you are using a federal or private student loan, you should research and compare:

The terms for repayment payment
The interest rate, and whether it is variable or fixed
The monthly payment you will have to repay
The options the loan includes for repayment

Once you know the interest rate and the total amount you will borrow, you should then use an online calculator to determine how much interest you will pay. This will help you determine the overall cost of the loan. When using a federal loan, you are automatically enrolled in a payment plan of 10 years. However, you can change this to something that works better for you.

Understand Post-Loan Life

While you may not have to make any payments while you are in school, particularly if you took out a federal loan, you must remember it is still a loan and you will still have to pay it back. Know when your first payment is due, and remain in contact with your lender or servicer so you do not fall behind on payments.

Call a Florida Debt Defense Lawyer When Lenders Take Action

Student loans are necessary for many people to get a post-secondary education. However, these loans are just like any other, meaning if you do not repay them on time, the lender may take legal action against you. This happens more often than people think and if it has happened to you, our Fort Lauderdale debt defense attorneys can help. At Loan Lawyers, we know how to defend these legal actions to give you the best chance of a positive outcome with your case. 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.

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Florida’s Foreclosure Moratorium Has Expired – Here Are Some Options

The moratorium Governor DeSantis issued on evictions and foreclosures in April has now expired. Unfortunately, Floridians are still being hit hard by the pandemic, and many have yet to return to work, which means it is still very difficult for them to pay their rent or their mortgage. While this may seem like the worst-case scenario, there are some options for Floridians. Read on below to learn what those options are, and what you should do if you are facing foreclosure.

The Centers for Disease Control and Prevention

One reason DeSantis gave for allowing the moratorium to expire was that the Centers for Disease Control and Prevention now has the ability to freeze some evictions. To be eligible, tenants must submit a declaration form to their landlords stating that they have experienced a significant loss of household income, and that they have taken great measures to obtain government assistance.

A spokesperson for DeSantis stated that one reason for the expiration of the order was so that tenants could avoid confusion regarding whether they are eligible for CDC’s eviction order, or the state-wide moratorium. Lawyers and court staff in the state have had to come to their own interpretations of the law to determine which one would prevail.

Texas has avoided this problem by requiring landlords to notify tenants about the CDC’s eviction order, and to give them the specific declaration form they must fill out. Florida has not implemented any of those same rules.

Still, even with the CDC’s eviction order, it still does not protect single-family homeowners who do not have a federally-backed mortgage, as the federal government order does not apply to foreclosures. The approximately 70 percent of homeowners who do have a federally-backed mortgage are still likely eligible for programs available through Fannie Mae and Freddie Mac that protect homeowners from foreclosure.

It is clear that without the state-wide moratorium in place, owners of single-family homes, and those that rent them, are most at risk for facing foreclosure or eviction.

Boca Raton’s Answer

One city in Florida, Boca Raton, is offering its own rental assistance and foreclosure prevention programs. After receiving approximately $317,322 in relief funds from the Florida Housing Corporation (FHFC), Boca Raton has approved a program that can help either tenants who are facing eviction or homeowners who are in fear of foreclosure. The program will also help individuals with their homeowners’ association fees, penalty fees, late fees, and court costs for the time period of March 1, 2020 to November 30, 2020. The maximum amount allowed for each household is $5,800.

To be eligible for the program, renters must:

Have a current lease agreement,
Have been current with their rent before March 1, 2020,
Be a minimum of 30 days behind with their rent, and
Cannot have liquid assets that are greater than $25,000 in value.

Homeowners that want to use the program to avoid foreclosure must:

Have a mortgage issued by an FDIC-insured lender as balloon payments, private mortgages, and home equity lines of credit are not eligible,
Have been current with their mortgage before March 1, 2020,
Cannot have liquid assets that exceed $25,000 in value, and
Cannot have an assessed property value over $350,000, according to the appraiser’s most recent valuation.

Homeowners can also ask for assistance with association dues they have fallen behind in paying, as long as they are also asking for assistance with their mortgage payments. Assistance is not available for those that only need help with their association dues. Although this is an assistance program that Boca Raton has created, all homeowners in other locations should check with their own municipality to determine if there is help available.

What to Do if You Are Facing Foreclosure

While certain Floridians may be able to take advantage of assistance programs, the sad truth is that these will not apply to everyone in the state. So, what can you do if you are facing foreclosure?

Understand the law: Florida is a judicial foreclosure state, which means if your lender wants to foreclose, they must file a lawsuit against you to gain approval from the court before proceeding. Many lenders may be more forgiving at this time but even if they are not, it will still take a while to foreclose on the home, which may give you the necessary time to reach a solution.
Read your agreement: Not all mortgages are created equally, so it is important to read yours through and understand it. Is there a right of redemption that allows you to reverse a foreclosure through a grace period? Can a deficiency judgment be issued against you in the event of foreclosure? Understanding these terms will give you an idea of what to expect.
Contact your lender: Your lender will most definitely proceed with the foreclosure process if you do not contact them. They will assume you are not interested in possible alternatives and so, will simply foreclose on the home. Homeowners are often surprised at how willing their lender is to work with them because truthfully, lenders do not want the hassle of the foreclosure process. Nor do they want your home. As difficult as it may seem, call them and ask if there are any possible alternatives to foreclosure.
Look into government programs: The federal government also has certain programs available to help homeowners facing foreclosure. For example, the Making Home Affordable program offers loan modifications and refinancing packages for individuals that qualify.

If you feel that you have exhausted your options, or you are not sure where to turn, contact a foreclosure defense lawyer who can help.

Our Foreclosure Defense Lawyers in Florida Can Help

No one wants their home foreclosed on, but the good news is that it may not have to happen to you. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys understand the defenses available in these cases and we will use them to help you save 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.

The post Florida’s Foreclosure Moratorium Has Expired – Here Are Some Options appeared first on Loan Lawyers.

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Friday, 9 October 2020

Things to Know if the Pandemic Has You Considering Bankruptcy

The COVID-19 pandemic has hit Floridians and people throughout the country in extremely difficult ways. In April, just a few weeks after shelter-in-place orders were issued in nearly every state, 22 million people filed unemployment claims. With the virus still circulating in communities, and businesses slowly reopening or still closed, it is expected that many more Americans will start filing bankruptcy claims. If you have lost your job or experienced other financial difficulties during this unprecedented time and are considering filing for bankruptcy, below are some things you need to know first.

Know Your Options

When debt is spiraling out of control, many people think they do not have any options but to continue to ignore phone calls from debt collectors. Truthfully, though, you have three options: You can either continue to make your minimum payments, negotiate a settlement with the debt collectors, or file for bankruptcy. In most circumstances, it is not logical to file for bankruptcy without first exploring your other options.

It is possible in many instances to get back on your feet without filing for bankruptcy, and banks and loan servicers are often willing to work with you, particularly during this difficult time. Although bankruptcy can provide immense financial relief, it should only be used as a last resort.

Call Lenders Before Filing

During this time of the pandemic, many regulators, lawmakers, and financial institutions have rolled out multiple assistance programs that you may be able to take advantage of while you still can. Some of the biggest lenders have created hardship programs that allow you to defer certain payments, including student loan debt, credit card debt, and car loans. If you have fallen into financial hardship due to the pandemic, call your lender and ask about any assistance programs they may offer. Make sure you do so before you start to incur late fees, as those will cost you more in the end and the lender may even be more willing to work with you.

Understand the Other Actions to Take

Financial hardship programs will only be in effect for so long before the lender expects you to start paying your bills on time once again. Additionally, certain lenders may also expect you to make all of your missed payments at the same time. If you still feel that you cannot meet your financial obligations, it is time to take some additional steps.

If your mortgage is underwater, meaning the total on the home loan exceeds the amount of the home’s value, ask your lender if you are eligible for a loan modification. A loan modification will change the terms of your mortgage, including possibly the principal amount you owe. If the lender approves your request, your monthly payments will be reduced to an amount that is easier for you to pay. Although you can ask your lender for a loan modification on your own, it is always best to work with an attorney who can negotiate on your behalf and prepare the necessary paperwork.

If it is credit card debt you are suffering from, you can also ask the lender to negotiate either a debt management plan or settlement. This step will likely require working with a non-profit debt counselor that can consolidate the debt into one monthly payment that you will pay off over the course over a number of years. Also, credit card companies will often agree to a settlement. A settlement will only work if you can make a lump sum payment that repays a portion of your debt and after the payment is made, the debt is considered repaid.

Know What to Expect If You File for Bankruptcy

The two most common types of bankruptcy filed are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, you will have to sell at least a portion of your assets, including a second property or vehicle you may own, stocks and bonds, or collectibles. The proceeds from the sale of the assets will be put towards your debt. Once the bankruptcy is approved, your outstanding debts are typically wiped clean. The entire process from beginning to end will typically take approximately three to five months. If you cannot pay back all, or at least a significant portion of your debt, Chapter 7 is likely the best option for you.

Chapter 13 bankruptcies, on the other hand, are also known as reorganizational bankruptcies because they do just that. In a Chapter 13 bankruptcy, a repayment plan is created that will allow you to pay off all of your debt, or a significant portion of it, usually within three to five years. People that are behind on their mortgage payments and are in fear of foreclosure often find that filing Chapter 13 bankruptcy is a good option because they will not lose their home in the process. Like your other property, you can typically keep all of your assets in a Chapter 13 bankruptcy, but you are expected to pay off the debt.

With both Chapter 7 and Chapter 13 bankruptcies, you must appear in court so a judge can approve the different aspects of your case. Although most federal courts shuttered during the early days of the pandemic, many are now open. Still, most court hearings are being held virtually, with the courthouses being closed to the public. Your case may be postponed, or it may be heard remotely over a platform, such as Zoom.

A Florida Bankruptcy Lawyer can Help with Your Case

The pandemic has hit Floridians extremely hard, and many are now considering filing for bankruptcy. If you are consumed by debt and think bankruptcy may be your only option, call our Fort Lauderdale bankruptcy attorneys at Loan Lawyers. We will guide you through the process, tell you what to expect, and make sure you are prepared so you have the best chance of success with your case. Call us today at (954) 807-1361 or contact us online to schedule a free consultation so we can discuss your legal options.

The post Things to Know if the Pandemic Has You Considering Bankruptcy appeared first on Loan Lawyers.

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