Florida Foreclosure Defense Lawyers Blog

Bank of America Corp. has notified 10,000 of their home mortgage borrowers that they are eligible for a new loan forgiveness program. The company said that the first modifications would begin in June. The only borrowers that are eligible for partial loan forgiveness are homeowners with certain types of loans that were originated by Countrywide Financial Corp.

Under the plan, the bank will agree to forgive part of the homeowner's remaining principle prorated over a three to five years period. If the homeowner misses a single monthly payment after the modification they become ineligible for further forgiveness. Bank of America claims that the program will eventually reach 45,000 struggling homeowners.

This is a start but it is only currently covering 10,000 of their borrowers nationwide. There were 3,789 foreclosures in the Jacksonville area in the month of May alone. The company did not disclose how much total money would be forgiven. Obviously this will help the homeowners that have part of their principal forgiven but nationwide the effects should be minimal due to the large number of foreclosures taking place every day.

Fannie Mae, the government backed underwriter of a large portion of U.S. home loans, announced today that in October it will begin punishing those who default on home loans they can afford because they are no longer "good investments." The company stated that is will not allow those who strategically default to obtain a loan backed by Fannie Mae for seven years.

Strategic default has become a hot button issue lately as the numbers of Americans who can afford their current mortgage payment have increased over the last couple of months. The new regulation may come as a blow to homeowners who have decided it is more financially beneficial for them to purposefully default because they may never see any equity out of their home. The new Fannie Mae regulation will not affect those homeowners who can prove a "financial hardship" such as a job loss or an illness that keeps them from paying their mortgage.

If you are underwater in your current home and are considering a strategic default, contact a Jacksonville Foreclosure Defense Lawyer today. A Florida Foreclosure Lawyer will discuss the benefits and drawbacks of strategic defaults as well as any other foreclosure alternatives that are available to you.

One of the most common occurrences in a Florida Foreclosure Lawsuit is a Plaintiff that doesn't have the proper documents to prove that they are the actual owner of the mortgage and have the right to foreclose on the home. MERS, which we have blogged about before, has been a major contributor to this problem but courts are beginning to gain a greater understanding of these issues and are ruling more consistently in homeowners favor.

In a new 12th DCA opinion the Florida court ruled that Aurora Loan Services, LLC lacked standing to bring the foreclosure complaint, did not possess the original note and provided no proof that the mortgage had been assigned to it. The assignment attached to the foreclosure complaint claimed the MERS assigned the mortgage to Aurora as nominee for the lender. MERS serves in a very limited capacity as nominee for the lender, MERS only records the mortgage and tracks its ownership, it does not have the ability to assign the mortgage to another party. Due to this limited right any mortgage assigned by MERS is not valid and therefore Aurora Loan Services, LLC did not have standing to bring a foreclosure action and dismissal was proper.

Lack of Standing is just one of the many defenses that a Jacksonville Foreclosure Defense Lawyer can assert on your behalf. Contact a Florida Foreclosure Lawyer to discuss your options and see if it makes sense to defend your suit from you will be taking the first step toward defending your foreclosure and saving your home.

Citigroup, Fannie Mae and Freddie Mac recently announced mortgage relief programs designed to give relief to homeowners in the areas affected by the BP Oil Spill. Citigroup is suspending loan foreclosures through September 17 for borrowers who have homes located within 25 miles of the affected areas. Fannie Mae and Freddie Mac announced that companies servicing their loans can reduce payments or totally suspend payments for those living in the affected areas for up to 90 days with the potential for additional time being added on a case by case basis. To take advantage of these relief programs, Borrowers should contact their mortgage servicer as soon as possible. For more detailed program and contact information consult the individual press releases below.

To read the Press Release from Fannie Mae: http://www.fanniemae.com/newsreleases/2010/5062.jhtml

To read the Press Release from Freddie Mac: http://www.freddiemac.com/news/archives/servicing/2010/20100617_relief.html

To read the Press Release from Citigroup: http://www.citigroup.com/citi/press/2010/100616b.htm

Ms. Burroughs was in charge of a company, WLL & Co., LLC, which purchased distressed homes, improved them, and then would sell them for a profit. In order to continue the business Burroughs allegedly was concealing where the borrowers down payments were coming from in an attempt to get lenders to give loans to buyers that would not have been eligible for the loans. Allegedly Burroughs was giving the potential borrowers the down payment money by depositing cash into their accounts, giving them a fake bill of sale from another property, or fake cash gift receipts. Due to the fact that many of the borrowers were not capable of making their monthly payments, many of the homes went into foreclosure. Because of this scheme underwriters had over $385,000 in losses. She faces a maximum of 20 years in prison and a $250,000 fine. This is one of the first cases brought by Obama's Financial Fraud Enforcement Task Force also known as "Operation Stolen Dreams."

Chase Home Finance was granted a motion for summary judgment against homeowners John and Freddy Gonzalez. The homeowners appealed the ruling. On appeal, the judge found that Chase met its burden for summary judgment against Freddy, but held that summary judgment was improperly granted against John.

John claimed that his ownership interest was acquired by virtue of Warranty Deed dated March 8, 2006, which was recorded in the Miami Dade County public records. While Chase's complaint stated that the mortgage was executed on March 15, 2006. "Parties claiming title superior to the lien of a mortgage being foreclosed are not proper parties to the foreclosure suit." If John's assertions were true he would have had an interest in the property prior to the mortgage, and therefore his interest in the property would be superior to that of Chase's. Therefore, Chase can only enforce its mortgage against the mortgagor, Freddy, but not against John.

This is just more proof that you should not just allow a bank to foreclose on your home without a fight. There are many defenses to a Florida foreclosure lawsuit. Contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer if you are facing or considering a Florida foreclosure lawsuit. If you would like to read the ruling from this case you can access it at the Florida 3rd District Court of Appeals website, case number 3D09-2015 filed on June 16, 2010 or here

David J. Stern Enterprises, Inc (DJSP) is under investigation on behalf of its investors for possible violations of federal and state Securities Laws. For the last five and a half months the publicly traded stock of DJSP had averaged around 350,000 shares traded per day. On May 28, 2010, after the stock price had been falling for quite a while, 4,931,292 shares were traded. Each of the three major stock holders of DJSP owned 4,151,666 shares. It appears that one of the major stock holders dumped all of their stock. If that is the case that individual would be guilty of insider trading.

If DJSP cannot even be trusted by their own investors, they should not be trusted by any individual that is going through a foreclosure in which this company plays any role. If you are going through a foreclosure and you see that the David J. Stern "foreclosure mill" is in any way involved contact a Jacksonville Foreclosure Defense Lawyer.

A Key West judge has dismissed a foreclosure lawsuit filed by the Florida Default Law Group (FDLG) filed on behalf of Bank of New York for failing to comply with the discovery requests of the Defendant. In response to the discovery request filed on behalf of the homeowner FDLG filed a Motion for Extension of Time for an indefinite period. FDLG did not respond to the homeowner's lawyer's good faith request about the length of time required under the extension. It was not until a year after the homeowner had filed their discovery request that FDLG finally replied by objecting to nearly everything that had been requested. The judge dismissed the case because FDLG had intentionally failed to comply with the discovery requests. FDLG cannot re-file the case unless it fully complies with the homeowner's discovery requests.

This is another victory for homeowners in foreclosure. Judges are beginning to tire of the lender's lack of compliance with the Rules of Civil Procedure in foreclosure cases. As the foreclosure filings continue to rise, hopefully we will see more judges take a stand against the unethical legal tactics employed by these lending companies.

A complaint was filed on a homeowner's association lien that attached to the homeowner's property. The trial court entered a $4,600 default judgment against the homeowner. A public sale of the home was set in the event that the homeowner did not exercise her right to redemption. A right to redemption cancels out the sale when the homeowner pays the amount owed on the judgment. When the homeowner did not redeem the home, the home was sold.

The homeowner filed an emergency motion to set aside the foreclosure sale. The homeowner claimed that she did not understand what the default judgment meant and that she now had the money to redeem the home. To vacate a foreclosure sale the trial court must find (1) that the foreclosure sale bid was grossly or startlingly inadequate; and (2) that the inadequacy of the bid resulted from some mistake, fraud, or other irregularity in the sale. The trial court must find both and in this case they did not find either. Her emergency motion to set aside the foreclosure sale was denied.

This case shows the importance of knowing the law and knowing the implications of the law. This homeowner had the money to pay the default judgment and stay in her home. But unfortunately for her she did not realize that she would lose her home if she did not pay the $4,600. Ignorance of the law is not a defense. Make sure nothing like this happens to you. If you are facing a Florida foreclosure lawsuit and/or have a default judgment entered against your home, contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer.

On Wednesday June 14 the government announced the arrest of the former head of wholesale mortgage lender Taylor, Bean & Whitaker, Lee Farkas, on charges he "operated a sophisticated shell game" wherein Taylor, Bean and Whitaker defrauded the Federal Housing Administration and at least two financial firms of more than $3 billion. Farkas was charged with conspiracy along with bank, wire and securities fraud and if convicted he could face life in prison.

Taylor, Bean and Whitaker was a large lender under the Federal Housing Administration programs and officials have said that FHA losses relating to Taylor, Bean and Whitaker are the largest ever. Farkas is also accused of filing false information in an attempt to get federal TARP funds through "sham" transfers into Alabama based Colonial Bank. The "sham" transfers created an estimated $400 million loss to Colonial which led to the banks collapse in August of 2009.

If you are facing a Florida Foreclosure Lawsuit and Taylor, Bean and Whitaker was your original lender contact a Jacksonville Foreclosure Defense Lawyer to discuss your circumstances and possible options to save your home.

Deutsche Bank National Trust Company filed this foreclosure lawsuit two years ago. In its original pleadings Deutsche Bank failed to show that it had standing and was the real party in interest under Florida law. After granting the homeowner's first Motion to Dismiss, the judge gave Deutsche Bank a chance to amend its complaint. Deutsche Bank failed to correct the errors found in its initial complaint. After two years, the bank failed to complied with the legal foreclosure requirements in the state of Florida. Therefore, the judge granted the homeowner's second Motion to Dismiss with prejudice.

This just goes to show that there are ways to fight these home lenders when it comes to a Florida foreclosure lawsuit. Even if you have been delinquent with your payments to your home lender, there are still defenses that you can use to stay in your home. If you are interested in learning whether or not any of these defenses are available for you, contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Lawyer.

Mediation is now mandatory in all residential Florida foreclosure lawsuits. The rules that apply to residential foreclosure mediations are quite different from the rules of a trial. They even vary greatly from the rules of other types of mediation because foreclosure mediations are mandated by the courts.

Prior to scheduling foreclosure mediation, the borrower must meet with an approved mortgage foreclosure counselor and provide certain required financial disclosures. If the borrower fails to follow the required pre-mediation procedures or fails to cooperate during the mediation process they may lose their right to mediation prior to foreclosure. The timeline for when actions must be completed is also different during this process.

Losing your opportunity to take part in foreclosure mediation can lower your chances of keeping your home. If you are facing a Florida foreclosure lawsuit contact a Florida Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer . Florida Foreclosure Defense Lawyers know the procedural technicalities that must be followed in foreclosure mediation.

A widowed homeowner in Lehigh Acres, FL was served with two foreclosure lawsuits from two separate companies. Both of the companies claimed to be the owner of her promissory note and her mortgage. Deutsche Bank filed one foreclosure lawsuit as Trustee for investors of mortgage-backed securities. The other foreclosure lawsuit was filed by Adorno and Yoss, LLP on behalf of American Home Mortgage Servicing. When it was revealed that two companies were foreclosing on the same home claiming to be the owner of the Note American Home Mortgaging Servicing withdrew its lawsuit.

The problem with a situation like this is that most foreclosure lawsuits go unchallenged. Had her lawyer not challenged the validity of the claims this attempted fraud may have never been noticed. Do not let one of these foreclosure mills take advantage of you in your time of financial crisis. If you have been served with a Florida foreclosure lawsuit (or two), contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer to discuss you options.

Just one more example of the unscrupulous methods some banks and foreclosure lawyers are going through to foreclosure on Florida homeowners. A Pasco county Judge recently dismissed a case where U.S. Bank and their attorney's, The Law Offices of David J. Stern, were found to have committed fraud in the assignment of the mortgage being sued on. The assignment of the mortgage in question was meant to show the U.S. Bank obtained ownership of the mortgage in 2007 but the Judge found that the assignment of mortgage was actually created in 2008, after the foreclosure suit had already begun.

In the dismissal, the Judge stated the assignment of mortgage was "fraudulently backdated, in a purposeful, intentional effort to mislead." These types of fraudulent documents have become all too common in foreclosure cases and the documents are coming under increased scrutiny from Judges and Florida Foreclosure Attorney's alike.

Due to the intricacies involved in fighting a potentially fraudulent Florida Foreclosure Lawsuit, it is extremely important that homeowners facing foreclosure consult with a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer to determine the appropriate steps for each individual's circumstances.

For more info see the Wall Street Journal.

Initially M&T Bank claimed that they owned the Note which had been lost. M&T's second claim was that they found the Note and owned it by assignment. The bank's third claim was that they did not own the Note, but instead Wells Fargo owned the Note pursuant to an Allonge stamped by First National Bank of Nevada in 2009.

The court concluded that M&T Bank was attempting to commit a fraud upon the court for the following reasons: 1) Their three claims were all inconsistent with one another; 2) the First National Bank of Nevada could not have stamped the Allonge in 2009 because the FDIC had had closed that bank in 2008; and 3) the chain of title on the Allonge and the chain title on the Assignment were inconsistent.

With the overwhelming amount of Florida foreclosure lawsuits currently being filed, it has not been uncommon for the lenders to try to sneak one past the court and the homeowner. If this type of fraud is not challenged by the homeowner it will oftentimes go unnoticed by the overburdened courts. Protect yourself by hiring a Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer . A Florida Foreclosure Lawyer will defend you against this and other types of fraud throughout the foreclosure process.

Florida Default Law Group, one of the countries largest foreclosure law firms, is being investigated by the Florida Attorney General for filing false assignments of mortgages, affidavits and other court documents that have "later been shown to be legally inadequate and/or insufficient," according to a press release from the Florida Attorney Generals Office announcing the investigation.

Homeowners have filed dozens of complaints about Florida Default and their filing of questionable documents with the Attorney General's office. Florida Default is one of several "foreclosure mills" located in Florida that handle most of the foreclosure cases filed in the state. Most foreclosure cases aren't usually contested so "foreclosure mills" can generally get away with these fraudulent practices.

When the foreclosure cases are contested, Florida Foreclosure Lawyers request copies of the note and the mortgage to ensure that the lender bringing the suit actually owns the mortgage. These documents can be hard for the lenders to find because they have usually been sold several times so these types of law firms often times produce documents that were recorded long after the foreclosure lawsuit was filed, creating fraud.

If you have been served with a Florida Foreclosure Lawsuit and you have concerns about the practices of your lender or their attorney's, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer. Florida Foreclosure Lawyer know what to look for and can spot this type of violation and providing the homeowner with a defense to a Florida Foreclosure Lawsuit.

This Act which has been approved by the House of Representatives responds to the sub prime crisis and the predatory lending techniques used by lenders. The Act will impose stricter requirements on lenders including:

-More stringent investigation by the lenders to ensure that the borrowers can repay the loan;
-Prohibition of predatory lending techniques;
-Liability on participants in the secondary mortgages markets;
-Holds creditors responsible for the loans they originate;
-Additional disclosures must be given to the borrowers;

As Bloomberg recently reported, banks are seeing a rise in instances of "flopping" fraud as the amount of bank authorized Short Sales increases. The Obama administrations efforts to increase the number of bank approved Short Sales as an alternative to foreclosure may create an increase in incentives for flopping. Flopping is a process wherein a investor or buyer hires a broker to value a home for less than its actual value while also convincing the banks to accept a sale at the lower value. In most cases the investor or buyer already has a higher offer lined up and then quickly sells the property for a profit.

The US Treasure has attempted to put protections in place to prevent this type of fraud such as requiring a ban on most resales of homes purchased via short sale for 90 days and requiring that the buyer and seller not have any sort of relationship.

Short Sale fraud can damage homeowners but exposing them to higher deficiencies and many more banks are seeking to collect unpaid mortgage balances than in previous years.

If you are exploring your foreclosure options, including the possibility of a short sale, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer today. A Florida Foreclosure Lawyer can help protect you from any potential abuses of frauds relating to your foreclosure.

In a recent 4th DCA opinion affirmed a trial court decision granting a summary judgment in favor Aurora Loan Services allowing them to foreclose on a Florida homeowner. In its foreclosure complaint, Aurora alleged that it was the "owner and holder" of the note and was the proper party to bring the foreclosure action. The homeowner, appearing without an attorney, argued that Aurora was not the proper party and the mortgage was payable First Magnus Financial Corporation not Aurora Loan Servicing and that Aurora did not produce evidence to show that it truly owned the mortgage and note.

In its decision the Court stated, "the borrower did not contest that the note at issue was the one he executed in the underlying mortgage transaction." There may have been a genuine question about the authenticity of the note Aurora provided but due to the legal inexperience of the homeowner he did not know to raise that defense.

While it is possible to successfully defend your Florida Foreclosure Lawsuit by going pro se, the likelihood of prevailing is very very low. Without the proper form, knowing what defenses to raise and what questions to ask courts may have no choice but to rule in favor of the banks. It is important to contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer to fight your Florida Foreclosure Lawsuit the best way possible in order to save your home.

The topic of strategic defaults has become the subject of more and more stories lately but what exactly are strategic defaults? A strategic default occurs when a homeowner who has the ability to pay their mortgage but decides to intentionally stop making their mortgage payments while still living in the home. In almost every case of strategic default the value of the home has dropped considerably causing the home to be "underwater."

A recent 60 minutes story highlighted the growing trend toward strategic defaults, noting that 11 million American homeowners have made the decision to voluntarily walk away from their mortgage payment. The Chicago Booth/Kellogg School Financial Trust Index showed the percent of foreclosures as a result of strategic default rose from 22% a year ago to 31% in March and this trend is expected to continue.

While some foreclosure defense attorneys advocate the benefits of strategic default, such as the money savings of not making a mortgage payment and potentially forcing the lenders to negotiate mortgage modifications, most foreclosure defense attorneys caution homeowners who are considering a strategic default to look at all the potential consequences. Things such as years of tarnished credit, potential deficiency judgments, and ultimately the loss of your home are all things to consider before deciding to strategically default.

If you are underwater in your current home and are considering a strategic default, contact a Jacksonville Foreclosure Lawyer today. A Jacksonville Foreclosure Lawyer will discuss the benefits and drawbacks of strategic defaults as well as any other foreclosure alternatives that are available to you.

Many Americans who entered into trial modifications on their mortgages through the government backed HAMP (Home Affordable Modification Program) are finding that they could wind up in foreclosure anyway, thanks to a detail buried in the fine print of those modifications; investor-based denial.

Often, homeowners do not realize that the company they send their monthly mortgage payment to is only the servicer of the loan and not the decision maker when it comes to making their modification permanent. In many cases a single investor or a group of investors actually owns the mortgage and those investors can prevent the trial modification from becoming permanent. In a lot of cases the homeowners begin the trial modification with a lower payment only to find out when the trial period ends that their permanent modification has been denied and not they owe money in the form of back payments!
if you are considering a loan modification it is very important that you contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer . A foreclosure lawyer will protect you from any potential abuses by foreclosure rescue or loan modification companies.

MERS (Mortgage Electronic Registration System) is a national electronic registrations system, owned and operated by MERSCORP, used to rack the ownership and servicing rights associated with mortgage loans. MERSCORP is registered in Delaware but headquartered in the Virginia suburbs of Washington, DC. The MERSCORP website states, "MERS is an innovative process that simplifies mortgage ownership and servicing rights are originated, sold and tracked. Created by the real estate finance industry, MERS eliminates the need to prepare and record assignments when trading residential and commercial mortgage loans."

The MERS system was created by members of the mortgage finance industry in 1996 in an effort to lower the costs associated with executing and recording mortgage loan documents with municipal recording offices. In order to use the MERS recording system members must pay a membership fee and agree to abide by the MERS terms of use. In its first few years MERS was only able to attract very large lenders Fannie Mae and Freddie Mac to use the system but in 1999 smaller, private mortgage lenders began using the MERS system.

While this may sound like a harmless way for mortgage finance companies to lower their fees and costs, MERS has created many problems which the mortgage industry is just now beginning to understand. In traditional land sale recording, when an individual buys land and enters into a mortgage contract the lender records that contract and their interest in the land in a county recording office. Any additional transfer of the mortgage is recorded again in the county recording office. What the MERS systems does is make the initial recording of the property and mortgage in the name of MERS as the "mortgagee of record." Any additional transfer of the mortgage is now done within the MERS system and is not recorded in the county recording office. This new policy has clouded the title of many homes and left homeowners facing foreclosure without a clear picture of who actually owns the mortgage on their home.

If you are facing a Florida Foreclosure Lawsuit where MERS or a company you are not familiar with is the Plaintiff contact a Jacksonville Foreclosure Defense Lawyer to discuss your circumstances and possible options to save your home.

A Cincinnati, Ohio couple faced a unique nightmare when facing a foreclosure action: they were facing thousands of dollars in tax bills and city fines for letting their home fall into disrepair, the only problem was they no longer owned the home!

In early 2007, the married couple was facing foreclosure because they had fallen behind on their mortgage payments due to poor personal financial management. The couple thought they worked out an agreement with their bank to proceed with a short sale. Under the terms of the proposed short sale the couple would be free from their mortgage and not have to declare bankruptcy but the bank that held the second mortgage rejected the deal. Since both banks had to agree to a short sale the couple had no choice but to have their home foreclosed on and the house was sold at a July 2007 Sherriff's sale.

A few months later the couple began getting tickets from the city ordering them to cut the grass and make repairs on the home or face fines. The couple called the city to tell them of their mistake but much to their surprise they were still listed as the property owners in the public record. The couple started calling everyone they could think of; the sheriff's department, the bank, the county recorder, to try to correct the error. Over the next three years the couple was unable to correct the error and in that time the house fell into extreme disrepair and the tab for the taxes and fines grew to almost $20,000.

Since no one seemed to care if they were left footing the $20,000 bill the couple wrote a letter to Judge Melba Marsh in an attempt to get her involved and force someone to take responsibility for the house. The judge looked at all the records concerning the house and just last week ordered all parties into her courtroom to explain how this happened. The Judge demanded the bank take ownership of the home as well take responsibility for the taxes and costs of the neglect that has happened over the last three years.

While this story is a worst-case scenario, there are many things within a foreclosure case that could present a nightmare scenario for you. If you are currently facing a Florida Foreclosure Lawsuit, or will be in facing a Florida Foreclosure Lawyer in the future, contact a Jacksonville Foreclosure Defense Lawyer today to discuss potential pitfalls of foreclosure and the foreclosure alternatives that may be available to you.

In February 2010 the Florida Supreme Court ruled that attorneys for banks and lenders must verify, under the penalty of perjury, the paperwork and allegations associated with foreclosure cases. In many counties in Florida attorneys were ignoring the new rules by saying that the Florida Supreme Court did not affirmatively state that the rule was actually in effect but this week the Florida Supreme Court clarified that attorneys must immediately follow the rule.

Recently many courts began throwing out the foreclosure cases before them for failure to follow the new verification rule. The rule is intended to provide an incentive for banks and lenders to verify their ownership of the note and mortgage, prevent the wasting of judicial resources, and to give trial courts more authority to punish banks and lenders who make those false allegations.

The verification rule was instituted to combat the sloppy paperwork that many attorneys for banks and lender were submitting to the court, which was slowing down the judicial process. In some instances sloppy paperwork meant that banks and lenders were trying to foreclose on properties they were not legally entitled to foreclose on!

If you are currently facing a Florida Foreclosure Lawsuit or will be facing one in the future, it is in your best interest to contact a Florida Foreclosure Lawyer . A Jacksonville Foreclosure Defense Lawyer knows the defenses that may keep you in your home.

The Florida 4th DCA recently reversed a trial courts final Summary Judgment of foreclosure where the complaint, filed by David J. Stern, P.A. as the representative of Citimortgage, stated in its affidavit that all conditions required to accelerate the mortgage note had been fulfilled and that final Summary Judgment was the appropriate action.

The 4th DCA ruled that Citimortgage's statements in its affidavit were not sufficient to overcome the homeowner's affirmative defense that Citimortgage did not "provide him with notice of the acceleration pursuant to paragraph 22 in the mortgage." Citimortgage provided no proof other than the statements in its affidavit and therefore reversal was appropriate.

In many cases foreclosure lawsuits filed by "foreclosure mills" are incomplete or not properly plead and therefore raise specific defenses which allow you to save your home. A Jacksonville Foreclosure Defense Lawyer is trained to spot these defenses and will work with you to get the best outcome in your Florida Foreclosure Lawsuit.

A recent Florida trial court ruling shows the type of lies that some Banks have used to victimize some Florida homeowners. In that case, a Final Summary Judgment of Foreclosure was entered by the court in January 2010 and the home was sold in March 2010. Before the sale took place, the homeowner was convinced by representatives of the bank not to oppose the motion for Final Summary Judgment and not to attend the hearing on the motion for foreclosure sale or to attend the actual sale because the case would not continue because her loan modification was still under review! The Bank even sent her a letter before the sale and a letter after the sale requesting more documentation for her loan modification

After the sale took place the homeowner received the Certificate of Sale the homeowner called the Bank and was told that the sale had taken place by mistake! The homeowner then filed a timely objection to the sale and a motion to set aside the sale and foreclosure.

The trial court ruled that the foreclosure judgment be canceled, that the foreclosure sale be set aside and advised homeowners not to rely on statements made in telephone conversations with banks when there are legal documents that contradict those statements.

If you are facing a Florida Foreclosure Lawsuit and the potential sale of your home you should contact a Florida Foreclosure Lawyer as soon as possible. In most cases a foreclosure sale of your home is not the best option and there are defenses that can be raised which can help you stay in your home.

On June 9 the 3rd DCA, reversed a trial court order in a case brought by Shapiro and Fishman, representing HSBC Bank USA, where the trial court denied a motion to continue final summary judgment and denying a motion to transfer the foreclosure action. The trial court failed to grant the homeowners motion to transfer the foreclosure to the division where a separate foreclosure action was pending where a different bank was attempting to foreclose on the same mortgage!

The 3rd DCA stated that the trial court "abused its discretion" by denying the motion and reversed the final judgment of foreclosure and remanded the case with instructions to reinstate the case in the division where the separate foreclosure was located and to allow the homeowners to answer the complaint and assert appropriate defenses.

In almost all Florida Foreclosure Cases there are defenses that will allow you to protect your home. Contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer for a consultation to help you understand your rights.

Today, the FBI and U.S. Attorney General Eric Holder announced a major crackdown on the mortgage fraud epidemic. The nationwide probe includes arrests and 485 individuals and involves 1,215 criminal defendants in cases involving $2.3 billion in losses. The arrests began March 1 and to date the operation has recovered more than $147 million. The probe has netted significant criminal cases in several U.S. cities including Miami, FL the Justice Department stated.

In the press conference announcing Operation Stolen Dreams, Attorney General Holder declared, "We will use every tool available to investigate, prosecute and prevent mortgage fraud, and we will not rest until anyone preying on vulnerable American homeowners is brought to justice." Discussing the need for mortgage fraud sweeps like Operation Stolen Dreams, FBI Director Robert S. Mueller III stated "from home buyers to lenders, mortgage fraud has had a resounding impact on the nation's economy," while Attorney General Holder acknowledged, "mortgage fraud ruins lives, destroys families and devastates whole communities, so attacking the problem from every possible direction is vital."

Criminal probes such as Operation Stolen Dreams serve as a warning to homeowners nationwide that mortgage fraud is an epidemic and needs to be guarded against. Contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Lawyer today if you are facing a Florida Foreclosure Lawsuit and feel that you may be a victim of mortgage fraud.

It is becoming increasingly common, especially in the area of foreclosure, that an individual will be sued by a company that they have never heard of. Oftentimes the company that is suing you has bought the mortgage from your original lender or another company. The company that is suing you may not be able to prove that you actually owe them the money, that they bought the debt, and/or that they are entitled to the payment of your debt.

If you feel that you do not owe the amount stated in the debt, do not recognize the name of the company that is suing you or have other defenses you may deny the debt and demand a trial. If a Florida foreclosure lawsuit has been brought against you, consulting a Jacksonville Foreclosure Lawyer can help you understand your rights and options.

Miami-Dade Circuit Court Judge Jennifer Bailey has been the leader of a statewide task force on residential foreclosures. One of her main goals is to hold foreclosure litigants accountable for their actions in court. In her attempts to ease the overwhelming number of foreclosure cases in the South Florida courts she has sometimes taken extraordinary measures. In a recent case, the judge went so far as to cancel a homeowner's $207,000 mortgage debt because the lender did not respond to the judge's order to post a bond.

For her hard work and dedication in this area, she has received a community service award. With foreclosure numbers continuing to rise in 2010 hopefully we will see more judges like Judge Bailey holding lenders accountable for their actions. If you are facing a Florida foreclosure lawsuit contact Jacksonville Foreclosure Defense Lawyer for a free consultation to help you understand your rights and options.

21st Century Legal Services, Inc. faces a lawsuit for charging consumers upfront fees for a loan modification in violation of the Florida Foreclosure Rescue Fraud Prevention Act. The company allegedly charged upfront fees up to $2,500 and failed to perform promised services without giving customers refunds. Because this company solicited loan modification services to Florida consumers the Florida Act applies to them. Under the Act, charging upfront fees prior to completion of services is a violation.

If the servicer of your loan modification or foreclosure rescue has charged you upfront fees prior to the completion of services, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer. For a complete copy of the lawsuit go to http://myfloridalegal.com/webfiles.nsf/WF/KGRG-82CN22/$file/21stCenturyComplaint.pdf.

Recently the Florida Supreme Court ruled that possible victims of unlicensed practice of law (UPL) do not have to a ruling from the Florida Supreme Court that a particular individual or company committed UPL to bring a civil suit for damages. The Court stated that if an activity has been found to constitute UPL, an individual may bring an action for damages against a party for UPL.

The class action suit in question was brought against two banks which refinanced thousands of mortgage loans and in doing so used non-lawyers to prepare mortgage documents. The two banks in question charged customers fees ranging from $50 to $150 for the preparation of these documents. The suit sought the reimbursement of these fees to the customers on the basis of UPL. The Court upheld the original dismissal for failure to state a cause of action because it had not yet ruled whether this practice was, in fact, UPL. The Court stated that UPL does allow a complaint for damages based on UPL and order to Florida Bar to determine whether the actions of the banks were UPL.

If you are facing a Florida Foreclosure Lawsuit due to the deceptive practices of your lender, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer for a consultation to help you understand your rights and options.

The Florida Foreclosure Rescue Fraud Prevention Act addresses the foreclosure rescue business and the abusive practices in that area. The Act prohibits businesses from collecting upfront fees for foreclosure rescue prior to the completion of services. In addition to foreclosure rescue, it also covers loan modification services. The Act requires that certain aspects of a loan modification or a foreclosure rescue must be in writing. This law is applicable businesses inside or outside of Florida if that company provides services to consumers in Florida.

Beginning on January 1, 2010 any individual or company that is providing loan modification services to a Florida consumer must have an active license provided by the Florida Office of Financial Regulation. This law was created to supplement the Florida Foreclosure Rescue Fraud Prevention Act.

If you are considering a foreclosure rescue or a loan modification it is very important that you contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer. A foreclosure lawyer will protect you from any potential abuses by foreclosure rescue or loan modification companies. If you would like further information about this Act go to the website of the Florida Attorney General located at www.myfloridalegal.com.

The good news is that Foreclosure filings declined nationwide in May. The bad news is that foreclosure filing in the Jacksonville area have risen more than 55%. According to the Florida Times-Union, foreclosure filings in Jacksonville area rose from 2,415 in April to 3,789 in May. The sharp increase may have been caused by more homeowners trying to renegotiate their mortgages and falling victim to foreclosure or the fact that mediation between the lender and the borrower is now required in all residential foreclosure cases. Unfortunately for Jacksonville homeowners, foreclosure filings could continue to rise throughout the year due to high unemployment rates and the continuing failure of government mortgage-assistance programs.

Simply because you have been given a foreclosure notice does not mean that you automatically lose your home. In many cases a foreclosure lawsuit has legal defenses that a Florida Foreclosure Lawyer can advise you of. Many people are under the mistaken belief that they do not need to answer the lawsuit properly because of a scheduled mediation. This is not true and even if you elect to participate in a court ordered foreclosure mediation, you must respond timely to the foreclosure lawsuit. Contact a Jacksonville Foreclosure Defense Lawyer to discuss your options and rights.

The Miami Herold has an article on the new Florida Foreclosure requirements.

A new Florida Supreme Court ruling may go a long way toward unclogging the estimated 500,000 Florida Foreclosure Lawsuit backlog by requiring bank to actually verify that they are in fact the owners of a home before they actually attempt to foreclose on it. That may sound like common sense but until February, when the new rule was approved by the Court, it was not the case.

The primary problem is with the original notes, which are the legal promises to pay a debt, have often been sold multiple times and many banks have lost them. Without the note, lenders were unable to prove who was the true owner of the property and in some cases this lead to two separate lenders attempting to foreclose on the same property.

IF you are facing a Florida Foreclosure Lawsuit or fear that you may be facing one in the future contact a Jacksonville Foreclosure Defense Lawyer to discuss your circumstances and possible options to save your home.

Foreclosure Rescue is a written agreement for:

1) The actual purchase of property facing foreclosure; 2) Leasing back of the property to the original owner; and 3) Owner has the right to repurchase the property after a period of time

There has been much documented abuse in the area of foreclosure rescue over the past few years. In review your agreement and make sure you understand what you are signing contact a Jacksonville Foreclosure Defense Lawyer .

On June 7th, the Federal Trade Commission issued one of the largest judgments ever imposed in an FTC case, ordering Countrywide mortgage servicing to pay $108 million for collecting excessive fees from borrowers struggling to keep their homes. According to the FTC complaint, Countrywide deceived homeowners into paying inflated fees, sometimes adding up to hundreds or thousands of dollars, when the homeowners were behind on their mortgage.

Under most mortgage contracts, homeowners are responsible for paying for default related services in order to protect the property interests of the lender. Homeowners do not have a choice in who performs these default related services and therefore they cannot shop in order to keep their costs down. The settlement requires Countrywide to pay $108 million which will be refunded to homeowners who Countrywide overcharged before July 2008.

Countrywide inflated the costs of many default related services, property inspections, lawn mowing, etc, by creating subsidiaries to hire vendors to perform these services at extremely inflated prices, thereby costing the homeowners more money. The FTC found that as the mortgage market fell, Countrywide earned substantial profits by ordering these default related services to generate revenue.

The settlement terms also prevent Countrywide from taking advantage of those borrowers who have fallen behind on their payments by permanently barring Countrywide from: charging a fee unless it is authorized by the loan instrument, by law, or by the consumer by request from the consumer; charging any default-related service fee unless it is a reasonable fee charged by a third party for work actually performed; and making false or unsubstantiated representations about loan accounts, such as amounts owed.

If you had a loan with Countrywide which is now being serviced by Bank Of America or someone else and are being foreclosed upon, contact a Jacksonville Foreclosure Defense Lawyer to discuss how you can defend against your Florida Foreclosure

On June 4th, the Florida 5th DCA reversed two Wells Fargo initiated unopposed motion to cancel foreclosure sale and two unopposed motion to vacate the foreclosure sale due to the trial courts "gross abuse of discretion" in deny these motions.

Wells Fargo filed a mortgage foreclosure action against the Lupicas and the foreclosure was granted due to the failure of the Lupicas to file an answer. The foreclosed home was set for sale but prior to the foreclosure sale Wells Fargo filed a motion to cancel the sale because Wells Fargo and the Lupicas reached an agreement on a loan modification. The court denied the motion to cancel the sale. Wells Fargo purchased the home at the foreclosure sale and then filed an unopposed motion to set aside the sale because the Lupicas and Wells Fargo had reached a forbearance agreement. Again the court denied the motion to vacate the sale.

The 5th DCA overturned the trial courts denials and found the trial courts actions constituted a gross abuse of discretion in that settlements between lenders and borrowers are favored over foreclosure and sale of the property.

If you are currently facing a Florida Foreclosure Lawsuit, or believe you will be facing a Florida Foreclosure Lawsuit in the near future contact a Jacksonville Foreclosure Defense Lawyer to explore your options. In many cases there are options that can be pursued that may prevent foreclosure sale and keep you in your home.

Ordinarily, under the current United States Tax Code if any portion of a debt is canceled or forgiven by a lender, the beneficiary of that forgiveness (the borrower) is liable for the amount of debt forgiven for income tax purposes. In this situation a lender would provide a borrower with a 1099-C form showing the amount of the debt and the borrower must include that amount as income on that years' tax returns.

Congress passed the Mortgage Forgiveness Debt Relief Act in 2007, which allows borrowers who receive a portion of their debt forgiven, through either mortgage restructuring or debt forgiven via foreclosure relief, to exclude the amount forgiven from their taxes. The Act is effective for the years 2007-2010 and allows a borrower to exclude up to $2 million of forgiven debt from their taxes.

In order to be eligible to exclude forgiven debt under the Mortgage Forgiveness Debt Relief Act the debt forgiven must have been used to "buy, build, or substantially improve your principle residence, or to refinance debt incurred for those purposes." In order to be eligible the debt also must be secured by the home.

Fear of tax consequences should not prevent you from exploring your options in relation to mortgage debt forgiveness when fighting a Florida Foreclosure Lawsuit. Contact a Jacksonville Foreclosure Defense Lawyer to explore your options when facing foreclosure.

HOEPA is the Home Ownership and Equity Protection Act of 1994, which addresses certain deceptive and unfair trade practices in home equity lending.

The loan is covered by HOPEA if it meets the following requirements:

1) if the loan is the original mortgage on the property, if the annual percentage rate (APR) exceeds by more than eight percentage points the rates on Treasury securities of comparable maturity;

2) If the loan is a second mortgage, the APR exceeds by more than 10 percentage point the rates in Treasury securities of comparable maturity; or

3) The total fees and points payable by the consumer at or before closing exceed the larger of $583 or eight percent of the total loan amount. ($583 figure is for 2009). Credit insurance premiums for insurance written in connection with the credit transaction are counted as fees.

If a loan satisfies the requirements of HOEPA there are certain disclosures that must be given to the borrower at least three days before the loan is finalized, including disclosure of the APR, regular payment amount, and the total loan amount. Also included in the disclosure is the notice of a three day right of rescission.

HOEPA also prohibits many of the predatory lending practices that were common among High-Rate, High-Fee loans. Practices such as balloon payments that do not fully pay off the balance of the loan, default interest rates higher than pre-default rates and due-on-demand clauses are just some of the practices prohibited under HOEPA.

HOEPA gives those borrowers how have been damaged the right to sue their lenders for violation of these requirements. If successful, borrowers may actually be able to rescind their loan.

If you need help determining if a HOEPA program is a possible option for your family contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer to review your position.

Ameriquest has agreed to settle with thousands of borrowers that had mortgages originated or serviced by the company after December 14, 2001. The suit stemmed from "alleged improper mortgage lending and mortgage loan servicing activities in violation of numerous federal and state laws, including the Truth in Lending Act (TILA), breach of contract, unjust enrichment, and state Consumer Protection and Deceptive Trade Practices Acts. Ameriquest has agreed to a financial settlement with the class of unsatisfied mortgage holders but has denied any liability. For more information on the settlement, visit the official settlement website at www.AmeriquestMDLSettlement.com.

If your lender purposefully deceived you at any time during the loan settlement process and your home is being foreclosed, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer . A Florida Foreclosure Lawyer will review your documents and make sure the lender did not violate any laws when originating or servicing your mortgage.

Just because a bank agrees to let you have a short sell does not mean that the you (the homeowner) are not liable for the difference between what the home is sold for and the loan amount plus additional fees and expenses. Prior to a short sale on your property you should get the mortgage company to release you from all further liability. Many lenders will tell homeowners that they are not able to do this, but the truth is that many can and have done it.

If you are negotiating or discussing a short sale, a loan modification, or a forbearance agreement with your lender, it is in your best interest to have the agreement reviewed by a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer . A Florida Foreclosure Lawyer can make sure you understand the agreement and what your liabilities are and can help you to negotiate terms that limit future liability.

Bank of America has agreed to settle a class-action lawsuit stemming from their acquisition of Countrywide Financial. Countrywide has been accused of predatory lending practices by many of their home mortgage borrowers. Eleven states have joined in this class-action settlement, including Florida. The aid provided by this settlement includes lowering of interest rates, lowering principal, no loan modification charges, and waiving prepayment penalties. This new program was launched by Bank of America in December.

If you have been served with a Florida Foreclosure Lawsuit or if you have concerns about the practices of your lender, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer. Florida Foreclosure Lawyers are very adept at spotting this type of violation and providing the homeowner with a defense to a Florida Foreclosure Lawsuit.

In a New Jersey case of Barrett v. Morgan, et al, 2010 WL 1219540, a foreclosure judgment was entered against a homeowner and a sale of their home was scheduled. A "mortgage broker" fraudulently told the owners that he could help them refinance their mortgage and save their home by using a "lease to buy back" program.

The family signed a lease when they "refinanced" giving them the right to remain in their home. It was explained to the family that an investor would pay off the remaining balance on their mortgage and that investor would be their new lender. The "mortgage broker" told the family to meet him at his office at noon, but the broker did not show up until fifteen minutes before his office closed for the evening. To force them to sign, the broker told them that the sale of their home had been moved up to the next day and if they did not sign they had no chance of keeping their home. They reluctantly signed the papers. But instead of lowering their monthly mortgage payments from $2,300, the new lease increased their monthly payments to $3,500. Also, what they signed was only a lease, giving them no option to own the home.

This case is a great example of what can happen to a homeowner when they do not consult a lawyer to help handle their foreclosure proceedings. This type of foreclosure rescue scam is being used more often today. If your home is about to be foreclosed or has recently been foreclosed, contact a Florida Foreclosure Lawyer. A Florida Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer will know your rights and will be able to discuss all of the options available to you.