Florida Foreclosure Defense Lawyers Blog

If you are currently facing a foreclosure, you may notice that a different company than you obtained your mortgage from is bringing the foreclosure action against you. This is not unheard of, and, in fact, is common. If you do not recognize the company that has filed your foreclosure, it may be because the company from whom you obtained your mortgage sold its rights, merged with, or was acquired by another bank.

For example, if you originally secured a mortgage through Countrywide, you may now know that Countrywide is no longer inexistence and are wondering what affect this has on your Countrywide mortgage. Bank of America acquired Countrywide and now has all the rights of Countrywide to your mortgage. An interesting chart of the bank mergers that have occurred over the past few decades can be found herein the New York Times.

It is important to pay attention to the transfer of your mortgage because it may have been transferred incorrectly. We are still waiting to see the effects of robo-signing and other methods of potential fraud used in the foreclosures. Nevertheless, the burden lies with your current foreclosure company to prove they have the right to foreclose. If they cannot prove they have the right, you may have a good argument against foreclosure.

Of course, with the average length of foreclosures hovering over 800 days in Jacksonville, Florida, battling the banks and foreclosure firms is a tricky process. Don't face them alone. Contact a Jacksonville Foreclosure Defense Attorney to discuss your options and which make sense given your personal circumstances and goals.

If a bank cancels or forgives debt from a mortgage, a Form 1099 is automatically sent to you to report the Cancellation of Debt as income. For those not familiar with a Form 1099, it is used to report income that is not earned from wages, salaries or tips. There are multiple versions of the 1099. The Form 1099-C is used to report the Cancellation of Debt. Unfortunately, the Cancellation of Debt reported on a 1099 must be included on a tax return as income on which you must pay taxes.

Since 2007, the Mortgage Forgiveness Act of 2007 (which will expire at the end of 2012) has allowed cancelled debt from a foreclosure to be excluded as income if your primary residence secured the mortgage. However, banks often do not allow the debt left over from a foreclosure to be simple written off in this manner. Instead, the bank chooses to pursue the borrower personally, after the foreclosure has ended and the home sold, for the remaining balance of the mortgage.

It is important to discuss this possibility with an attorney to make sure this does not happen to you. A Florida Foreclosure Defense Attorney can help protect you from being pursued for the remaining balance of your mortgage as well as help you prepare for the future. Contact a Jacksonville Foreclosure Defense Attorney for a complimentary initial review of your situation before its too late.

In today's mortgage industry, the long-standing simple concept of the transfer of mortgages still exists. However, times have changed and the concept of transferring mortgages has become extremely complex.

Originally, when a Note and Mortgage were transferred to a new owner, the new owner would take possession of the original Note and Mortgage, and the original Note would be endorsed specifically to the new owner, much like a check. This process is reflected in Florida Statute § 673.2031(1) (2010) which states: "[a]n instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument." The Supreme Court of Florida held that a mortgage can be transferred without a written assignment simply by delivering the note with intent to assign it. Hence the well-known expression, the Mortgage follows the Note.

With the extreme demand of finance today, the simple concept of just endorsing and physically delivering the note and mortgage from one lender to another no longer exists. Today, the path most likely seen is:
➢ The Mortgage originator (Lender) originates hundreds of loans; THEN
➢ The Mortgage originator uses the borrowed money in order to create more mortgages; THEN
➢ When the Mortgage originator has a sizeable number of mortgages, the originator partners with one of the major investment banks to pool the mortgages and create securities of out them. This process is called "securitization."

Securitization occurs when the Mortgage originator assigns a pool of mortgages to a newly formed trust. The trust in turn issues securities for the mortgages, which are sold to investors. The trust becomes the owner of all the mortgages in the pool and the investors receive payments on the securities based upon collection of mortgage payments from the pool. Packaging mortgages as securities makes trading mortgages much easier, rather than trading each mortgage separately.

This brings me back to the transfer of individual mortgages. As described, mortgages and notes are assigned by the hundreds and even thousands; making it extremely alluring to skip entirely the preparation and recording of a proper chain of title for each mortgage in a pool. Since mortgages are transferred multiple times within the life of a loan, each transfer is generally only temporary. To streamline the process, transfer generally only takes the form of a pledge of the mortgages in bulk together with delivery of the original Note to the bank. The mortgages may be transferred in bulk, unrecorded, many times without ever physically moving the notes.

If you are facing foreclosure and believe your Note and Mortgage were securitized, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Lawyer today.

Since the 1960s, the U.S. Defense Department has had in place a housing program to help military service members. In and through the fiscal stimulus of 2009, this housing program was expanded by Congress to include military members who are reassigned to a new base and own their home on which they owe more than the home is worth. Wounded soldiers and spouses of fallen soldiers were also included in the 2009 expansion.

Since the expansion of the housing program, the federal government has been able to provide relief to 7,000 service members who were reassigned. The relief given largely went above and beyond the approved $855 million by Congress by paying out more that $1.1 billion. Those who received relief were partially reimbursed for their losses for as much as 90%. The government bought 2,500 homes.

However, the program maybe coming to an end even though the housing-market remains in chaos in many military communities including the communities near military bases in Jacksonville, Florida; Southern California; and Dayton, Ohio. The program is not suppose to end until September 30, 2012, but is already in a profound deficit. Additionally, there is not a lot of support coming from Washington to continue the expanded program with Washington's current focus on trying to cut down the federal government's spending. The Obama administration has not requested any new money for the remaining 2012 fiscal-year.

If you are a military service member in Jacksonville, Florida, contact a Florida Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today for a free case review to evaluate your foreclosure defense options.

The simple, straight to the point answer is YES! You should be worried about a deficiency judgment if you are currently in foreclosure or in default on your mortgage. Being in foreclosure or default has a high risk of you losing your home, but it also has a high risk of a judgment being entered against you.

This is a Deficiency Judgment--when a real estate property is foreclosed upon in Florida, the property is sold at a foreclosure sale. If the property owner owed $200,000 on her mortgage when she was foreclosed upon, and the property is only sold for $100,000 at the foreclosure sale, then the lender/bank can obtain a deficiency judgment for $100,000. A court order is entered stating the property owner owes the lender/bank $100,000. However, getting the deficiency judgment and actually collecting on it are two different beasts.

The lender/bank must obtain the deficiency judgment within 5 years of the mortgage going into default or of demanding payment. Also, a trial court has discretion whether or not to grant a deficiency judgment, and its decision must be based on established equitable principles, taking into account the specific facts of the case, and the decision is always subject to review by an appeal. Carlson v. Becker, 45 So.2d 116 (Fla.1950). The court must take into account the reasonable and fair market value of the property, and the reasonableness of the amount of the foreclosure sale. Savers Federal Savings & Loan Association v. Sandcastle Beach Joint Venture, 498 So.2d 519 (Fla. 1st SCA 1986). "The granting of a deficiency judgment is the rule rather than the exception." Flagship State Bank of Jacksonville v. Drew Equipment Co., 392 So.2d 609 (Fla. 5th DCA 1981).

If you are facing foreclosure, there may be steps you can take to ensure you do not get stuck with a deficiency judgment. Contact a Jacksonville Foreclosure Defense Lawyer or a Jacksonville Bankruptcy Lawyer today for a free case review to evaluate your defense options.

The Occupy Wall Street movement, whose members are protesting a variety of issues stemming from the current economic climate including foreclosures and high unemployment, tried to cross the Brooklyn Bridge on Saturday, October 1, 2011, afternoon in protest. Over 700 protestors were arrested when they left the walkway and began using the roadway.

There is a lot of controversy regarding whether or not the arrests were legitimate. Protestors believe the police tricked them and caused the arrests. Protestors are blaming the police for the arrests by allowing protestors to enter the roadway and escorting them part of the way across the bridge before trapping them in orange netting. One protestor, Etan Ben-Ami was quoted as saying, "It seemed completely permitted....There wasn't a single policeman saying 'don't do this'...We thought they were escorting us because they wanted us to be safe."

However, police are saying it was the protestors' choice of action that led to the arrests. Those who used the walkway were not arrested while those who took to the roadway and hindered vehicle travel were arrested. Paul J. Browne, the chief spokesman for the New York Police Department, has said "This was not a trap...They were warned not to proceed."

In connected demonstrations in other parts of the country, 25 people were arrested in Boston for trespassing while protesting Bank of America's foreclosure practices, according to the spokesman for the Boston Police Department Eddy Chrispin. The protesters were on the property and obstructing the entrance to the building.

The Occupy Wall Street movement seems to be gathering steam and drawing more media coverage with each passing day. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today to determine what foreclosure alternatives may be available to you.

In an effort to lessen the companies' long term risk, both Fannie Mae and Freddie Mac have announced plans to change the fee schedule they charge to mortgage lenders. The increase in what are called "guarantee fees" is anticipated to take flight gradually, beginning in early 2012.

Guarantee fees are fees paid to Fannie and Freddie, who do not actually loan money, by investors who purchase packaged mortgage loans assembled by Fannie and Freddie. The White House has endorsed the fee increase, too, as the raise in fees will lessen the overall government involvement in the mortgage market by attracting more capital from investors. The move is projected to save nearly $28 billion over a 10-year time frame.

The increased costs will apply more to riskier loans and mortgages that sit in areas with more strict foreclosure laws. All of this appears to be in the interest of ultimately protecting the consumer.

If you are facing a Florida Foreclosure Lawsuit and your loan is owned by Fannie Mae or Freddie Mac, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to determine what options you have in fighting for your home..

In a program which mirrors a program struggling Florida homeowners have been able to take advantage of for almost a year, Illinois homeowners who are having difficulty making their mortgage payments can take advantage of a new federal program designed to help keep people in their homes. The program, dubbed Illinois Hard Hit, cam provide up to $25,000 over 18 months to those homeowners who are at risk for losing their homes.

The Illinois Hardest Hit Program offers two types of assistance: 1) Reinstatement assistance to pay mortgage arrearages, fees, and penalties in full, and 2) Monthly mortgage payment assistance to pay 100% of the mortgage payment owed to the servicer for up to 18 months while the household makes monthly contribution payments to the Illinois Housing Development Authority during their enrollment in the program.

To qualify for the "Hardest Hit" program, a homeowner must have at least a 25% drop in income, the household income cannot be more than 120% of the local median income, the residence must be the primary and only residence of the borrowers, the loan balance must not exceed $500,000 and the current servicer must agree to accept payments.

This program may bring some much needed relief to struggling Illinois homeowners. If you are a Florida homeowner, a similar program is available to you. For information on the Florida Hardest HIt Program clicktarget=new here. If you are already facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today for your free consultation.

If you are facing Florida Foreclosure Lawsuit, you may be unsure of what options you may have. Talking to an attorney can help wade through all the potential options and help you make an informed decision. Here are 5 foreclosure options and potential ways a talking to a Foreclosure Defense Attorney can help you.

1. Extensions and Forgiveness: A Foreclosure Defense Attorney may be able to help you gain additional time in your home and/or obtain forgiveness on some of your past due payments, late fees, and charges.
2. Lower your Monthly Payments and Interest Rate: A Foreclosure Defense Attorney may be able to help you negotiate a new, lower interest rate, which will lower your monthly payment.
3. Forbearance: A Foreclosure Defense Attorney may be able to help you negotiate a period of lower monthly payments; after which you would resume your normal monthly mortgage payment.
4. Short Sale: A Foreclosure Defense Attorney may be able to help you negotiate a Short Sale. A Short Sale is where you and the bank agree to sell the property for an amount less than what you owe on the property. The lender then agrees to release you from the loan and accept a lower amount than what they are owed. The amount not repaid is called a deficiency. In some, but not all cases, the lender will agree to not hold the borrower responsible for the deficiency.
5. Deed-in-Lieu of Foreclosure: A Foreclosure Defense Attorney may be able to help you negotiate a Deed-in-Lieu. A Deed-in-Lieu is where the borrower conveys the property to the lender in order to satisfy the loan that is in default and avoid foreclosure. There are several advantages to both the borrower and lender. One advantage to the borrower is they are immediately released from most or all personal indebtedness associated with the loan in default. A Deed-in-Lieu also hurts your credit less than a foreclosure. The benefits to the lender include less time and cost spent repossessing the property, and a lower risk of vandalism to the property by the borrower.

If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a JFlorida Foreclosure Defense Lawyer today for a complimentary case review to see if any of these options could be available to you.

"Robo-signing" refers to the practice many banks and their employees have been accused of utilizing which includes employees essential sitting in a room signing thousands of documents without reading them. Rob-signing has been a wide spread practice throughout the nation in foreclosure cases. Many foreclosures have been rife with "robo-signed" documents and some industry official believe homeowners have been wrongfully foreclosed upon as a result.

However, banks and mortgage lenders are now beginning to be held responsible for robo-signing practices, both past and present. Goldman Sachs, Litton Loan Servicing LP, and Ocwen Financial Corporation, after extensive negotiations, have agreed to withdraw active foreclosure cases if they contain robosigned affidavits or inaccurate affidavits. Hopefully, robo-signing will soon come to an end as these firms have further agreed to reinforce supervision of foreclosure counselors and fire all foreclosure attorneys who have been found to have questionable document practices or who face sanctioning by their state's bar.

If a home has already been wrongfully foreclosed upon, the settlement requires each company to return the property involved to the homeowner, or provide adequate compensation for the loss.

If you believe your home being wrongfully foreclosed upon due to robo-signed documents, contact Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Lawyer today to review your case and see what defenses may be available to you. The first consultation is free!

Florida is one of the hardest-hit foreclosure areas in the nation. Many Floridians have found themselves in the foreclosure trap: unemployment means lower income, which in turns means an inability to pay the mortgage. It's not that people are irresponsible; they simply cannot afford to pay the bills. Eventually, the bank moves for foreclosure.

Fortunately, you don't have to go through foreclosure alone. Hiring a knowledgeable Florida Foreclosure Defense Attorney may be an important decision that can have enormous benefits. The foreclosure process can be confusing and is often frustrating, and an attorney can help guide you through the process.

Additionally, we have written in the past about the foreclosure fraud plaguing the process. If you have fallen victim to this fraud, a Florida Foreclosure Defense Attorney can file a suit on your behalf.

Don't face the banks alone. You have many options at your disposal, and you should have competent legal representation during your foreclosure process. Contact a Florida Foreclosure Defense Attorney today.

A 101-year-old Detroit woman has been evicted from her home after her son failed to make her aware of an active foreclosure on her home. The foreclosure stemmed from a 2002 mortgage refinance of her home, when she was 92-years old!! The woman, who owed approximately $80,000 on her mortgage, had lived in the home for almost 60 years.

The 65-year-old son of the evicted woman stated he threw away all correspondence and notices from the court "because he didn't want to worry her" and "he was sure it wasn't going to happen." Property records show the taxes were paid on the home as through the summer of 2010 but were unpaid thereafter. The woman and her son are now living in a rental home nearby and she is working with a local non-profit agency to try to get her back in her home.

This situation shows no one is immune from the foreclosure machine. If you are facing a Florida Foreclosure Lawsuit all may not be lost. Ensure you pay attention to any foreclosure related correspondence you receive and contact a Florida Foreclosure Defense Lawyer or a Florida Foreclosure Lawyer for a complimentary case review to determine what foreclosure defense options may be available to you.

Reports are pouring in that the current Presidential administration is planning more action to strengthen the crippled U.S. housing market. Talks are focusing on several different options the Obama White House could take, but all parties agree, the plan must be tight. Here are a couple of the rumors flying around.

A first proposal would provide for million of government-backed mortgage homeowners to refinance their homes at today's substantially lower interest rates, which sit around 4 percent. Refinancing may sound like a sound proposal because of course it would immediately lower housing payments. But banks and those invested in mortgage-backed securities are sure to balk at such a plan, which the Administration should brace for. The second proposal would include a rental agreement for foreclosed homeowners to help them stay in their homes even if they lose the dwelling in foreclosure.

The market is certainly in need of a fresh breath of air, and with the housing market dwindling nearly one in five homeowners is upside down on their home. With the 2012 election year just around the corner, the Administration definitely has an interest in helping out the masses that are facing financial trouble largely due to the housing market.

There's a lot of time still until the market will see this type of relief, but it could be sooner than later given the short time until Election Day. If you are facing a Florida Foreclosure Lawsuit and would like to see what options may be available to you, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today.

In the great majority of foreclosure cases, the first mortgage holder is usually the one that brings the foreclosure action. But what about when there is a second mortgage involved? The second mortgage may file a foreclosure just to protect interest in the property, but this is a rare occurrence for several reasons.

While a second lien holder can file for foreclosure, due to the dramatic decline in home prices, only the first mortgage holder will usually get paid via any sale or auction that takes place. Since these home sales usually involve interested buyers looking for relatively cheap homes, the house usually sells for much more than is owed on the mortgage. Since there is likely not enough money to even pay off the property taxes, and potential homeowners association arrearages and first mortgage after the sale, it just doesn't usually make financial sense for the second mortgage company to initiate the foreclosure proceeding. But of course, that doesn't mean that second mortgage holders cannot or will not file a Florida Foreclosure Lawsuit.

If you are facing a Florida Foreclosure Lawsuit from the holder of the second mortgage on your home, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to determine what options are available in your particular case.

The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.

Last week, FHA took administrative actions against 26 different lenders for multiple violations. The actions taken by FHA included reprimands, probations, suspensions, and civil money penalties. In addition, some lenders will have their FHA-approval revoked. In the past year, the FHA has taken more than 1,600 administrative actions against lenders.

"It's never been more important that lenders doing business with FHA apply our standards to each and every loan they originate and underwrite," said Acting FHA Commissioner Carol Galante. "FHA requirements ensure homeowners are put on a path of sustainable homeownership and that ultimately helps stabilize entire neighborhoods and communities."

While FHA's actions may protect some homeowners from default, the efforts might be too late for others. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to discuss what foreclosure remedies may be available to you.