Is There Still Time to Stop Your Foreclosure?

If you have missed a mortgage payment or two, or the bank has already started the foreclosure process, you may wonder if it is already too late to stop it. Foreclosure is an exhausting and time-consuming process and throughout it, you will find that you are not only battling the bank, but also strict legal deadlines. Borrowers often feel as though they are rushing up until the last minute to stop the bank from taking back their home.

In Florida, there are three phases of the foreclosure process and you may have the opportunity to stop the foreclosure during any of these. The three phases are pre-foreclosure, the foreclosure sale, and the right of redemption. Below we will delve further into each of these three phases, explain how they apply to a foreclosure case, and what you can do to stop the process during each.

Stopping a Foreclosure During the Pre-Foreclosure Phase

If you have already missed a mortgage payment but the process has not extended beyond that, you are considered to be in the pre-foreclosure phase. During this phase, it is generally easiest to stop the foreclosure process.

The bank will notify you of the missed mortgage payment during the pre-foreclosure phase, but that does not mean they have taken legal action. The length of this phase will depend based on specific facts in your case. However, under the Dodd-Frank Act, you will have at least 120 days before the lender can file a foreclosure lawsuit with the courts. These lawsuits are necessary because Florida is a judicial foreclosure state.

The Dodd-Frank Act is federal legislation that was enacted as a result of the housing crisis in 2008. According to the Dodd-Frank Act, lenders and servicers alike are prohibited from filing a foreclosure until the borrower is over 120 days behind on their mortgage. Once 120 days have passed, a servicer can publish the notice that you defaulted on your mortgage and can sell the home during a foreclosure auction, according to Florida law.

In some cases, it is possible to stop foreclosure after the 120-day period by applying for loss mitigation with the lender. To do this, you should contact your lender and ask to speak to the Loss Mitigation Department before the 120-day period has expired. Once you have submitted the loss mitigation package, the bank must tell you whether you are eligible for loss mitigation. However, the lender must also review your application for loss mitigation, which can delay them from continuing on with litigation.

Stopping Foreclosure During the Foreclosure Sale

After the lender files a ‘Notice of Default’ with the court, along with their legal complaint, the next step in the process is a public sale. The length of time this takes usually depends on the schedule of the court, but it is typically between 180 and 200 days to finalize an uncontested foreclosure. An uncontested foreclosure is one in which the borrower does not try to fight the process. If you contest the foreclosure though, you can extend this phase of the process.

To do this, you must raise one of several foreclosure defenses. These include:

• Lack of standing: To sue you for foreclosure, the bank must have standing. This means that they must have something to lose and typically requires that the bank prove they hold the mortgage loan. When the lender cannot prove they have standing, they cannot proceed with the foreclosure lawsuit.
• Lack of notice: Before the lender can proceed with a foreclosure lawsuit, they must first notify you that you are behind on mortgage payments. After filing the lawsuit, the bank must also provide notice to you that they have started legal action. When lenders do not comply with the appropriate notice periods, it can serve as a foreclosure defense.
• Unclean hands: Proving that the lender has unclean hands means you must prove the lender is at least partly at fault for the foreclosure. Unclean conduct can include behavior that is unconscionable, activity that is illegal or fraudulent, or if the lender acts in bad faith.
• Improper accounting of mortgage payments: State and federal law outline certain regulations and rules that must be properly applied to payments and charges associated with mortgages. When lenders fail to follow these accounting laws, it can result in your foreclosure case being dismissed.
• Failure to comply with HUD requirements: Under the law, lenders must also notify borrowers about their options for loan counseling that are available from the U.S. Department of Housing and Urban Development (HUD). When they do not, that failure to act can be used as a foreclosure defense.

When fighting foreclosure, you should always speak to a foreclosure defense lawyer that can advise on the best defense for your case.

Stopping a Foreclosure with the Right of Redemption

While it may not sound possible, you can stop a Florida foreclosure once the auction of the home is complete by using the right of redemption. The right of redemption is a statutory law that states borrowers have a certain period of time, usually fewer than 10 days, to pay off the remaining debt, the principal balance, and the costs and interests before the certificate of sale is filed or the time specified in the judgment, whichever date is later. The amount you must pay to stop a foreclosure using the right of redemption will be outlined in the foreclosure order.

Do Not Fight Foreclosure On Your Own. Our Foreclosure Defense Lawyers in Florida are Here to Help

If you have already missed a mortgage payment, or even more, you may wonder if it is too late to stop the foreclosure process. You may also be surprised to learn that you have plenty of time. At Loan Lawyers, our foreclosure defense attorneys in Fort Lauderdale can review the facts of your case, advise on how to stop the foreclosure, and build the strongest defense for your case. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation with one of our skilled attorneys so we can review your case.

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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Trying to Avoid Using Credit Cards? Here is How to Do It

When you are trying to get out of debt, one of the first pieces of advice you may receive is to stop using your credit cards. The advice is sound, as using a credit card essentially means that you are using money that you do not have yet. While credit cards have many useful purposes, when you rely on them too much it can actually hurt your finances and result in you spending more money than you earn. This can have a snowball effect, as it will add to the amount of debt you owe every month, making it easier for you to fall behind on your payments and ultimately hurting your credit score.

Unfortunately, avoiding using your credit cards is something that is much easier said than done. Breaking the cycle of using credit is not easy, but there are some money-management strategies you can use to put you back in charge of your spending and help your financial future rather than hurt it.

Draft a Budget

Creating a budget is not glamorous or exciting, but it is a necessary step when you are trying to stop spending on your credit cards. While many people have been advised to create a budget, few people know how to actually do it. You can either use budgeting software to make it easier, or draft your budget manually.

The first step when creating a budget manually is to determine how much you earn every month and the total amount of your expenses every month. When calculating their income, many people simply use the amount they receive on their paycheck every week or every two weeks. However, it is important to consider any child support or government benefits you receive, and include those as well.

When determining your monthly expenses, start with your recurring expenses, such as rent, your mortgage payment, and the amount you spend on utility bills. Then keep track of your unexpected expenses, such as the daily coffee you buy on your way to work, and other habits that cause you to rely on your credit cards.

After you determine how much you earn and how much you spend every month, subtract your expenses from the amount you earn. This is your discretionary spending allowance, or the amount you have available to spend after all your other purchases and bill payments. If you do not have any money left for discretionary spending, or your amount is in the negative, you may be relying on credit cards too heavily.

At this point, analyze your spending habits and determine where you can cut extra expenditures. You can also figure out ways to earn more money, which will ultimately give you more in your discretionary spending allowance. While no one gets excited at the thought of creating a budget, it is an essential step when trying to figure out how to avoid using your credit cards.

Start Relying on Cash

After determining how much discretionary spending you have available every month, you should then start carrying that amount on you in cash. To ensure you do not run out before the week or month is over, you can divide it up by the number of days on your budget. Then, each day, only carry that amount. The trick is to stop carrying credit cards on you. This way, you are not tempted to use them for certain purchases and you will never spend more than you have because you have no other option. Additionally, you also will not go further into debt and will not rack up interest charges.

Once you run out of your discretionary spending, it is imperative that you do not spend any more until you have more available in your budget. Otherwise, you may inadvertently end up relying once again on your credit cards, defeating the purpose of only carrying that amount.

Use Debit Cards when Necessary

A debit card is linked directly to your bank account and so, they make it impossible to spend more than you have. However, you still need to be very careful because you obviously do not want to drain your bank account, which could result in you using credit cards rather than a debit card. If you find you are depleting your bank account on a regular basis, or close to it, you should then revert back to only carrying cash with you. Still, debit cards can bring all the benefits of credit cards, including allowing you to take money out of your bank account easily, and carrying plastic instead of bills and coins.

Make it Difficult to Access Your Credit Cards

One of the most effective ways to stop using your credit cards is to make it more difficult for you to do it. Again, one of the benefits of credit cards is that they are convenient and if you take that convenience away, they become much harder to use.

There are several ways you can do this including:

• Put your credit card on ice: Perhaps one of the oldest methods to make it more difficult to use your credit cards is to freeze it. Place your credit card in a dish, fill it with water, and simply freeze it. Once frozen, it will take several hours before the block of ice is defrosted, which should be enough time to realize you do not want that impulse purchase after all.
• Freeze the card: Many credit card issuers will offer to place a temporary hold, or freeze, on your card. You are still responsible for making payments on the card, but you will not be able to use it until the freeze expires.
• Cut the card up: When you want to stop using credit cards for a significant period of time, you should cut the card up. This will prevent you from spending on the card, but does not close your account, which can ultimately hurt your credit.

When these methods are not enough and you accumulate too much credit card debt, it may be time to seek legal help.

Call Our Debt Defense Lawyers in Florida to Learn About Your Legal Options

When you are suffering from debt, the first step you should take is to try and avoid using your credit cards altogether. Unfortunately, these methods are not always enough. If a creditor has taken legal action against you, it is important to know that you have options. At Loan Lawyers, we are debt defense attorneys in Fort Lauderdale who can explain what those options are, and advise on which one is best for you. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation with one of our 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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Should You Fight Foreclosure?

When you have missed some mortgage payments and are in fear of foreclosure, you have a big decision to make. Should you allow the foreclosure process to continue, or should you fight it and try to stay in your home? While your emotions may try to dictate the answer, there are some important financial considerations that you should think of, as well.

Before making your final decision, you must evaluate your financial situation, which has likely changed since the time you purchased your home. Here, we will look at why foreclosures are so common in Florida, and the questions you should ask yourself if you are in fear of losing your home.

Why Are Foreclosures So Common in Florida?

It often seems that Floridians are at a disadvantage compared to the rest of the country because the sad truth is that foreclosures are extremely common in Florida. In fact, Florida has been a leader in foreclosures in the United States for several years. When considering the reasons for this, it is really not surprising to hear.

The first factor that led to so many foreclosures in Florida was the subprime mortgage crisis. During the years leading up to the Great Recession, lenders were eager to finance homes Floridians simply could not afford. Borrowers did not even always know they were taking on more than they could handle because very little was needed for a downpayment at that time, and interest rates were incredibly low. Lenders took advantage of that and financed a great number of homes in a very short period of time.

Once the housing crisis hit, many people simply left Florida, leaving behind their underwater homes that were impossible to sell, and instead letting the homes go into foreclosure. Florida, like the rest of the country, started to rebuild and borrowers in the state found themselves in a much better position after just a couple of years. Not long after, the COVID-19 pandemic hit and that left borrowers struggling again.

State and federal governments tried to thwart another housing crisis by instating moratoriums and other financial relief intended to help homeowners get through the pandemic. Unfortunately, those measures were short-lived and this past October, foreclosure filings once again increased in the state despite the fact that moratoriums were in place.

Due to the fact that foreclosures are so common in Florida, it is critical that homeowners determine whether or not they should fight it if they find themselves in the position that they may lose their home. If you have missed some mortgage payments, or the foreclosure process has already started, there are three questions to ask yourself when deciding whether or not you want to fight it.

Is There Equity in Your Home?

If you are facing foreclosure and you have equity in your home, you may want to fight foreclosure so you can hold onto that equity. The equity in your home is the difference between the amount you still owe on the home and the amount you can sell it for. If you are unsure of whether you have equity in your home, a real estate agent or a foreclosure defense lawyer may be able to advise on your home’s current worth.

However, you should never try to keep a home simply because you want to hold onto the equity. If you have equity in your home, you also need to consider if you will be able to afford your mortgage payments in the future. When you think you cannot afford your monthly mortgage payments, it may make sense to get rid of the mortgage and try to sell your home to protect your financial future.

Can You Afford the Mortgage Payments?

Many people pay at least 50 percent, if not more, of their gross income towards their mortgage every month. The more of their income they pay towards their mortgage, the less they have for the basic necessities of life, including food, transportation, utilities, and other out-of-pocket expenses, such as medication. In these situations, a person’s financial situation is simply not sustainable. If you are in this position, it may not make sense to fight foreclosure, particularly if you have lost your job or are in another position that will make paying your mortgage payments more difficult.

Generally speaking, you should put no more than 30 to 32 percent of your gross income towards your mortgage. However, this rule of thumb does not always apply. For example, a person that has a child with special needs will need to put more money towards childcare, so they may only be able to afford to put 20 or 25 percent of their gross income towards housing.

Can You Lower Your Debt?

Sometimes, keeping your home may be a simple matter of lowering your debt load so you can afford your mortgage payments.

The following tips can help determine if you can lower the amount of debt you pay on a monthly basis, or if you should let your home go into foreclosure.

• Make a budget: Take a real hard look at your income and expenses by writing them all out. If there are expenses you can get rid of, you may be able to afford your mortgage. If all of your expenses are essential though and you cannot get rid of any, you may have to let your home go into foreclosure.
• Lower your mortgage payments: Before you give up and allow your home to go into foreclosure, you should always speak to your lender. Many lenders will offer loan modifications or other options that may allow you to stay in your home.
• File bankruptcy: Certain types of bankruptcy, such as Chapter 13, will allow you to restructure your mortgage payments, as well as your other debt, so you can keep your home.

Call Our Foreclosure Defense Lawyers in Florida Today

One of the best ways to determine if you should allow your home to go into foreclosure is to speak to a foreclosure defense lawyer in Fort Lauderdale. At Loan Lawyers, we know the defenses available that can help keep you in your home and we will negotiate with your lender or fight your case in court to give you the best chance of success with your case. 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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Examining the Biggest Myths Surrounding Credit Scores

The world of credit scores is often confusing and intimidating. Many people do not fully understand the factors that can increase or lower a credit score. This is largely because there are so many myths floating around out there about credit scores and what hurts them and what helps them. Here we will examine some of the biggest myths surrounding credit scores and the truth behind them.

Checking Your Own Credit Score Will Lower It

If many different creditors check your credit score in a very short amount of time, it will likely reduce your overall score, which is likely how this myth got started in the first place. Many people do not realize, though, that there are different types of credit inquiries. A hard inquiry is the type creditors will make when determining whether or not to give you credit. Too many of these in a certain period of time and yes, it may lower your score.

However, when you check your own credit score through a banking app or other form, it is a soft inquiry. The major credit reporting bureaus, such as TransUnion and Equifax, also allow you one free credit report every year. These are also soft inquiries and will not lower your score. In fact, you are encouraged to check your credit score periodically to see where it is and if it needs improvement.

Opening a New Credit Account Will Lower Your Score

Sometimes, opening a new credit account will lower your score, but that is not always the case. You need some credit history before you are considered low risk to creditors. So, if you do not open any credit accounts, you will not have a credit history, which ultimately lowers your score. On the other hand, if you open a credit account and can pay off the credit you use on time, it is actually very healthy for your score.

Still, there are times when opening a new credit account will hurt your score. First, opening a new credit account will mean the creditor will make a hard inquiry, which could negatively impact your credit score. Additionally, if you open many new credit accounts at once, it may lower your score because it will seem as though you need to borrow more than you can afford.

Your Credit Score and FICO Score Are the Same Things

There is some truth behind this myth, but your credit score and FICO score are not necessarily the exact same thing. A FICO score is just one type of credit score, but there are other credit scoring systems out there as well. Most systems use the same range, typically between 300 and 850, but they use different algorithms and information to arrive at your score. Currently, most creditors do use the FICO system, so it is generally that score you should be most concerned about.

You Can Increase Your Credit Score By Paying Off Debt

Debt is not something anyone wants to deal with. Having a significant amount of debt will also make you seem like a high risk to creditors, so it is advisable that you pay it off when you can. However, this usually only applies to certain types of debt, such as a credit card.

If you have debt that is to be paid off in installments, though, and you pay off too much at once, this can actually hurt your credit score. Lenders want to see that you can pay off your debt, and also that you know how to manage your money well. If you pay off a debt in eight months when it was supposed to take over one year, lenders will think you cannot properly manage your money and so it could lower your score.

It Does Not Matter How Much of Your Credit You Use

You may think that because your credit card has a $3,000 limit, that is how much you can spend. In fact, that is true, but maxing out your credit card will only hurt your credit score. When lenders look at your credit history, they want to see that not only can you repay your debt, but also that you can manage your credit wisely. To do this, they will consider how much debt you have, and how much you are using. This is known as credit utilization.

While you should use some of your credit to show that you can pay it off, you should also try to keep your utilization under 30 percent. So, if you have a credit card limit of $3,000, you should try to use no more than $900, or 30 percent, of that limit.

Closing a Credit Card Will Increase Your Credit Score

This is perhaps one of the biggest myths about credit scores, and it is absolutely untrue. If you voluntarily close a credit account, it automatically increases your utilization rate because you do not have as much credit that is not being used. That will ultimately lower your score. In other instances, a creditor may close an account simply because you have not used it in some time. To avoid this, make a small purchase with your credit cards from time to time to keep the account open without taking on more debt than you can afford.

There Is No Such Thing as a Perfect Credit Score

This is not true. However, you should not be concerned if you have never achieved the 850 that generally constitutes a perfect score. Once your credit score is considered good, there really is not a lot of benefit to getting a higher one. Try to keep your credit score at a fairly positive number, and do not become too concerned if you cannot seem to get it any higher.

Drowning in Debt? Our Debt Defense Lawyers in Florida Can Help

The myths about credit cards may seem like harmless untruths, but they are much more than that. In fact, they can sometimes lead to a person drowning in debt, and maybe a creditor even taking legal action. If a creditor has threatened to file a lawsuit against you, or has already started the process, our debt defense lawyers in Fort Lauderdale are here to help. At Loan Lawyers, we will answer all of your questions surrounding your debt, and prepare a defense to give you the best chance of success with any lawsuit filed against 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 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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Have You Been Contacted Or Sued By Persolve Recoveries, LLC?

If you have been contacted by Persolve Recoveries, LLC or if they have sued you, please contact our office.  You may be entitled to financial compensation for violation of the Fair Debt Collection Practices Act.

We will look into your situation for free and if we are able to uncover any wrongdoing by Persolve Recoveries, LLC we will take your case on contingency, which means no fees or costs unless we obtain a recovery for you.  Please note that a claim for a violation of the Fair Debt Collection Practices Act must be brought within one year of the violation, so do not delay.

It does not matter whether you owe Persolve Recoveries, LLC money or not, they still have to respect your consumer rights and follow the law.  Even if you have already paid them, or have already lost a lawsuit filed by them, we may still be able to obtain a recovery for you.

Do not delay, call Loan Lawyers right now for your 100% free consultation and case evaluation.  Call us right now at 1-888-FIGHT-13 to speak with an attorney.

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Do you Have a Loan with WebBank, LendingClub, Prosper, or Avant?

If you have a loan with WebBank, LendingClub, Prosper, or Avant, we are very interested in speaking with you.  Whether you are current on the loan, struggling to make the payments, or are already in default, you may be entitled to financial compensation.

Call Loan Lawyers right now for your free case review.  Plus, if we feel that you have a claim, we will take your case on contingency, meaning there will be no legal fees or costs unless we obtain a monetary recovery for you.

Most borrowers with loans generated by WebBank, LendingClub, Prosper, and Avant applied online and likely never read the fine print. These loans often have exorbitant interest rates and many consumers drown in the monthly payments.

The good news for you is that we have read fine print and based on what we have uncovered, you may be entitled to financial compensation.  Please contact Loan Lawyers at 1-888-FIGHT-13 for your free case analysis.  Again, it does not matter whether you are current on payments or not, we want to speak with you either way.

We can schedule your initial free consultation over video conferencing or in person, depending on your comfort level.  Call us now at 1-888-FIGHT-13 for your free consultation with an experienced consumer law attorney.

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Has PHH Mortgage Corporation Charged you Fees or “Assessed Expenses” After a Final Loan Modification?

Many homeowners have struggled to make mortgage payments, and a loan modification is one great way to save homes from foreclosure.  However, many loan servicers, including PHH Mortgage have charged fees and costs after the modification that are possibly improper.

Homeowners who thought the nightmare was over, and now have a mortgage payment they can afford, find themselves back in the same position as before.  If you have done a mortgage loan modification with PHH Mortgage Corporation and they started charging additional fees and costs, often couched as “assessed expenses” or some other cryptic phrase, we are definitely interested in speaking with you.  You may have a case and be entitled to compensation for being improperly charged these “assessed expenses” after your final loan modification.

We will give you a 100% free consultation with an attorney to go through your specific situation.  If we find that you have been improperly charged for these “assessed expenses” or other fees and costs, we will take your case on contingency.  That means there will be no fees or costs unless we obtain a recovery for you.

Whether it is PHH Mortgage Company or any other mortgage loan servicer that has charged you improper fees after a final loan modification, call us now for your free consultation at 1-888-FIGHT-13.  Do not wait until the issue gets worse, you want to nip the problem in the bud.  Call now.

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