Florida Foreclosure Defense Lawyers Blog

Facing and going through a Foreclosure lawsuit in Florida does affect the rest of your life. Try to think of a Florida Foreclosure lawsuit as a starting point for preparing for your future. Going through a Florida foreclosure can be stressful, worrisome, and, worst of all, emotionally tiresome. As soon as the foreclosure suit is filed in Florida, it is important to immediately create a plan for your future. It is never too late to begin but your options can be limited by waiting to long. The key issues to begin focusing on are:

- Resolving the Foreclosure - Does it make sense to modify the loan or resolve the complaint or is the home so far upside down that it does not make sense.

-Finding a new place to live: Once the foreclosure process ends, if you are unsuccessful, you will have to vacate the property, but where do go? Most likely you will have to find a place to rent. Begin putting money aside to pay for moving expenses and deposits.

-Repairing your credit score: Know what your credit score is. Once a year you can check your credit score with all 3 credit bureaus at annualcreditreport.com. Make sure all information reported is accurate. If there is erroneous information, request it be removed. Filing bankruptcy is another option that may increase your credit score. At the very least, it will allow you to begin repairing your credit sooner rather than later. A foreclosure will stay on your record for 7 years!

-Tax consequences: You may have to pay taxes on the deficiency between your loan balance and the foreclosure sale. However, the home mortgage exception (legislation passed by President Bush that will expire at the end of 2012) may help you, or you may be able to cancel the tax debt from your mortgage.

-Background checks: Foreclosure, as well as bankruptcy, can get in your way of obtaining a financial position or a job that requires a security clearance. Have an explanation ready and be prepared.

If you would like to speak with an attorney regarding your particular situation, since there is not just one way to deal with foreclosure, contact a a Jacksonville Foreclosure Defense Attorney. We are here to help you prepare for your future after foreclosure!

An interesting by-product of "waiting in the wing" is the tendency for other areas of life to be affected. The Florida foreclosure backlogs have people doing just that - waiting - and it is beginning to take a negative toll on many homeowners. Recently, attorneys in Florida have noted how the foreclosure process has affected clients in other ways, such as those looking to discharge their debts in bankruptcy.

Some clients in Florida can have their debts discharged in bankruptcy fairly quickly. But many are finding their financial lives still on hold when a home is pending in foreclosure... a process that can take up to 3 years in Florida. By that time, the clients may have paid off past debts and repaired their credit. Even so, with the foreclosure still pending, it remains difficult to secure financing from a lender. For example, if the client wants to purchase a new home, many banks will not lend to borrowers who have a foreclosure judgment on record within the past 36-months.

Until Florida's foreclosure procedure is cleaned up, banks are reluctant to file more foreclosures to add to the 368,000 still pending. As a homeowner, you can avoid the effects of "waiting" for a foreclosure judgment by taking action. Call a Jacksonville Foreclosure Defense Attorney and schedule a consultation to see what options are available to you. Many times these consultations are free. Navigating the harsh waters of a Florida foreclosure can be made easier by enlisting the help of Jacksonville Foreclosure Defense Attorney early on in the process.

Often, a personal representative of a Florida Probate estate must deal with the decedent's real property that is burdened by a mortgage. Therefore, it is important to know how the mortgage affects the administration of the estate. All too frequently, the decedent's mortgage goes into default upon their death for one of four simple but avoidable reasons:

- There are no other assets or funds in the estate to make the monthly mortgage payments;
- The personal representative does not know about the mortgage so they don't make the payments;
- The personal representative incorrectly assumes the mortgage does not need to be repaid while the estate is being administered or that the loan is forgiven upon the decedent's death;
- The property is worth less than the mortgage.

However the mortgage must continue to be paid according to the terms of the mortgage or the property will be foreclosed on. If foreclosure occurs and the mortgage is a "purchase money mortgage," the lender is unable to seek a deficiency judgment from the estate. In other words, if the proceeds from the foreclosure sale are not enough to cover the balance of the mortgage, the lender cannot go after the descent's estate for the deficiency.

If you are the personal representative of a decedent's estate that includes real property accompanied with a mortgage, it maybe difficult to navigate the probate administration along with trying to avoid foreclosure. Seek a Jacksonville foreclosure Attorney who is experienced with the foreclosure process as well as with Florida Probate administration. Having an attorney experienced in both areas may help you through this difficult time.

Facing foreclosure can be stressful and scary. Knowing what to expect may provide you with some relief. The foreclosure process in Florida may differ slightly depending on where you are located, but, in Jacksonville, the foreclosure process generally follows this route:

1. Missed Payments: Once a payment is missed on your mortgage, it generally takes about three months for the Lender to begin the foreclosure process. However, it could take less or much more time.
2. Foreclosure Filed: The Lender's law firm will file papers to foreclose on your property and a Foreclosure Action is filed with the Court.
3. The Borrower is then served with a Foreclosure Summons and Complaint.
Many Borrower will then hire an experienced Jacksonville Foreclosure Defense Attorney.
4. Borrower Answers: The Borrower must file a written response with the Court within twenty (20) days of being served with the Foreclosure Summons and Complaint. It is extremely important to file a response within 20 days in order to protect your rights to the property. If a Borrower fails to respond within the 20 days, it is assumed that the Borrower admits all allegations in the Foreclosure Complaint and a default will be entered against you.
5. Options and Consequences. Borrowers should understand their options and what the consequences of each will be on their home ownership, length of time they can stay in the home, amount of money they will have to pay, and other personal issues. Understanding these options will help you to understand which solutions make sense for you and your family.
6. Seek Solutions: By choosing to respond to the Foreclosure Complaint and defend the Foreclosure, you have preserved your rights to the property, which allows you to seek other solutions to Foreclosure that is best for your specific situation. There is no one size fits all solution to Foreclosure, but a Short Sale, Deed-In-Lieu of Foreclosure, Cash for Keys, a modification, or Bankruptcy may allow you to avoid foreclosure.
7. Follow-Up: No matter which route you choose, ALWAYS continue to follow-up!

If you still have questions or would like to speak about your specific situation, contact an experienced Jacksonville Foreclosure Attorney. Having an experienced Jacksonville Foreclosure Attorney on your side may further help relieve the stress that accompanies foreclosure. The initial consultation is free.

Unfortunately, not at all! Robo-signing has now been identified in lawsuits against delinquent credit card holders. Just like in foreclosure actions where banks and lenders are required to produce original Notes and Mortgages in order to prove they have the right to foreclose, original credit agreements and accurate payment histories must be produced in order for banks to obtain judgments against delinquent credit card holders. The falsely attested-to statements by bank document custodians submitted in courts are being referred to as "robo-testimony."

As a result, judgments already entered in favor of banks may be abated. Banks could face suits from state attorney generals or investigated by the Consumer Financial Protection Bureau. As well as being charged under the Racketeer Influences and Corrupt Organizations Statutes.

This may bring some relief to debtors, but keep in mind this discovery is still very new and there remain many unanswered questions. However, this may explain why JPMorgan Chase & Co. suddenly walked away from 1,000 debt collection lawsuits in April 2011. If your pending case was suddenly dismissed by Chase, it was likely only dismissed "without prejudice," which means the case could be refilled in the future.

One aspect of the foreclosure crisis that is all too often forgotten, are the tenants of homes being foreclosed on. Tenants of foreclosed properties may be evicted even though they have always paid their rent on time and followed all terms of their lease. Is there any protection for this group? Yes, the Protecting Tenants at Foreclosure Act of 2009.

The Protecting Tenants at Foreclosure Act of 2009, or PTFA, was enacted by the federal government to provide tenants of foreclosed properties protection until the end of 2014. Under the Act, a tenant must be given at least 90 day's advance notice of eviction from the new property owner. However, the tenant must be a bona fide tenant, which means:

1. the tenant is not the borrower of the mortgage or the child, spouse, or parent of the borrower;
2. the lease is the result of a arms-length transaction; and
3. the lease requires the payment of rent that is not substantially less than the fair market rent for the property.

So if you are currently renting property that is being foreclosed on or are renting your property that is facing foreclosure, the tenants will not have to vacate the property without any notice. At a minimum, the tenants will have 90 days advance notice of when they must be out of the property. Regardless, it is always a good idea to seek the advice of a Jacksonville Foreclosure Defense Attorney.

A forbearance program is often a short-term solution to what is usually a greater problem. In such a program, a lender - such as your bank - agrees not to foreclose on your property so long as you keep making reduced monthly payments. These are ideal for people experiencing temporary setbacks, such as job loss or health issues.

However, this solution often causes other problems. The biggest thing to think of is the fact that, because the bank is lowering your monthly payment, your principle is not being reduced at the rate it once was. This means your interest is accruing on a higher principle balance and it will take longer to pay off your loan. Additionally, some lenders will still list your account as delinquent, even if they approve the forbearance plan. Make sure to ask your lender if this is their policy prior to agreeing to a forbearance plan. A delinquency could hurt your credit score.

The forbearance plan made news recently as Fannie Mae and Freddie Mac agreed to extend their forbearance programs to out-of-work homeowners; previously only up to 90 days. In order to qualify for these plans, homeowners cannot be working at all; however, a co-borrower may still be employed.

Beyond the initial requirement of being unemployed, there are further steps to take. While it may be possible to negotiate with your lender by yourself, this can be a daunting task and you are always welcome to contact a Jacksonville Foreclosure Defense Attorney who may be able to help you deal with your lender and may provide more peace of mind throughout the process. Contact a Foreclosure Defense Attorney to discuss your options.

Calling a Jacksonville Foreclosure Attorney to guide you through the steps is a good first start. But, there are a few other things you should know.

You do not need to immediately move out of your house. Actually, doing so may cause the bank or mortgage company to consider your home "abandoned," making it more difficult for you to obtain assistance. Instead, you can remain in your home until the bank obtains a foreclosure judgment against you.

You should pay attention to the letters the mortgage company sends you. You should not ignore these, and they will likely be useful when you contact a Jacksonville Foreclosure Attorney.

If you speak with the mortgage company about your situation, be honest. If you are not comfortable speaking with the mortgage company, your Jacksonville Foreclosure Defense Attorney can do that for you.

These are just a few simple guidelines to follow if you are facing foreclosure. Contact a Jacksonville Foreclosure Defense Attorney to discuss the details of your foreclosure. Each situation is different, but a qualified attorney may be able to help.

Ben Bernanke, the Federal Reserve Chairman, recently released an opinion outlining his support for a solution to the rising number of vacant foreclosure homes across the nation: converting them to rental units. This would be an interesting issue for Jacksonville Foreclosure Attorneys and their clients.

The trend is clear: the demand for home-ownership is very low, while demand for rental properties is on the rise. But transitioning foreclosed homes into rentals is difficult to do on a large scale. Small entrepreneurs typically may buy several foreclosure homes and rent them out. However, large-scale rental companies have refrained from purchasing foreclosed homes because the homes are often not adjacent to one another but spread throughout a city.

Financing is also a problem. While financing for multi-family rental units is available at a low rate, financing for single-family rentals is significantly higher. This means that those who have the money to purchase single-family homes as rentals do not have much of an incentive to do so. It makes more financial sense to develop multi-family units instead.

But large developers aren't the only ones who could benefit from renting out foreclosure homes. Some people facing foreclosure, or who are underwater on their mortgage, should consider a short sale -- selling their home to an investor who then rents the home. There are numerous options available to those facing foreclosure. If you are unsure of your options or would like to speak with someone who can help you, contact a Jacksonville Foreclosure Attorney.

There is a single fundamental action that must be done when faced with a foreclosure. Once served with a Summons and Complaint, you must file a response or an Answer to the Summons and Complaint within 20 days. The Complaint will and must state with specificity the nature of the action and what the Plaintiff (bank) is requesting.

Determining what to file and when to File an Answer in a foreclosure lawsuit is probably the most crucial step in a foreclosure lawsuit. There are several major benefits you cannot afford to miss out on. Once a response to your lawsuit is filed you will receive future notices of all future actions in the case. A properly written response can help to even the playing ground between the bank and yourself.

A lender bringing the foreclosure action certainly has multiple attorneys fighting for their interest and you should have an attorney reviewing your case and helping you fight to defend your rights and educate you on your options.

Contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Defense Lawyer to review your case and see that your foreclosure Summons and Complaint is properly answered and well drafted. A Florida Foreclosure Lawyer will also make sure that all other aspects of your foreclosure case is properly handled, giving you the best chance of coming out of the foreclosure with your head high above water. Complimentary initial consultation.

Unfortunately, Florida has one of the highest foreclosure rates in the country! The Banks that hold these mortgages have mountains of paperwork to sort through in order to deal with the large amount of mortgages in and heading towards foreclosure. The amount of paperwork Banks currently have is one of the main reasons why it often takes over a year for a home to be foreclosed upon, and a Florida Foreclosure Defense AttorneyAttorney can help extend the process even further.

Here in Jacksonville, a Jacksonville Foreclosure Defense Attorney will defend your rights for you, and force the bank to actually prove they have the right to foreclose on your home. It is important to know that by simply receiving a letter from the bank stating they intend to foreclose does not necessarily mean you must vacate your home immediately. The bank has to file a case against you and prove they are entitled to foreclosure. If you are facing a foreclosure, contact a Jacksonville Foreclosure Defense Attorney to discuss what options are available to you.

The answer is "It Depends." Time is the determining factor that will decide when you will no longer have access to your home and the property within. As we all have come to know, there is no way to influence time.

Technically once a property is sold at a foreclosure sale, a Certificate of Title must be issued to the successful bidder. Before then, the successful bidder of your home has no right to the property. You remain the owner of the property until the Certificate of Title is issued. Generally, it takes at least a few days for the Certificate of Title to be issued. However, if the property is not properly established as homestead, you may lose access to your home even earlier due to the locks being changed. If your locks are changed while you are still the owner, you can change them back.

If you find yourself in this position, pay close attention to the court docket for your foreclosure case. It is easy to tell when the Certificate of Title has been issued. It will appear on the court docket.

Don't find yourself in the position where you are not only losing your home but also your possessions in your home. Consult a Jacksonville Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer to discuss the options available to you before its too late.

Most likely if you are facing a Foreclosure, it is because of an unforeseen financial hardship. It is also likely that falling behind on your mortgage payments is not the only financial hardship you are facing. It might have also become difficult to pay your other monthly expenses and debts as well.

A Florida bankruptcy may be helpful in defending your foreclosure since there is not a one-size-fits-all approach to every foreclosure defense. Taking into account your personal and family goals, and your overall financial situation is important and key to successful Foreclosure Defense. No matter what course you choose, it is important to put your plan into action quickly.

A Foreclosure lawyer can offer certain options while a Bankruptcy lawyer can offer others. For example, foreclosure defense can offer a loan modification, allow you to walk away from a bad investment, protect you from future liabilities, save you from hours of paperwork, stop harassing collectors from calling you, and protect your credit rating from dropping further. On the other hand, Bankruptcy can allow you to end creditors' reports of delinquency, protect assets, clear away other debt, stall a foreclosure sale, strip away other mortgages, and in some cases help rebuild your credit faster.

Depending on your personal situation, a bankruptcy may be used in conjunction to foreclosure defense. In Florida, Foreclosure Defense and bankruptcy are two tools that can be used to avoid Foreclosure and create a long-term plan for you and your family. Contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Defense Lawyer today to determine if one or the other or both of these strategies can help you meet your long-term goals.

The Home Ownership and Equity Protection Act, commonly known as HOEPA, is a section within the Truth In Lending Act (TILA) that requires additional rules when a home refinance loan is considered high cost. A refinance loan is considered high cost if the initial home loan amount was below $120,000, or if the interest rate was above 10% at closing. Additionally, there may be a HOEPA violation where credit life insurance was sold as part of the loan transaction.

In addition to the disclosures required by TILA, the following additional disclosures are required when the loan is subject to HOEPA: "You are not required to complete this agreement merely because you have received these disclosures or have signed a loan application." "If you obtain this loan, the lender will have a mortgage on you home. You cold lose you home, and any money you have put into it, if you do not meet your obligations under the loan." These additional disclosures must also be provided THREE DAYS before closing along with the Annual Percentage Rate: In the case of a credit transaction with a fixed rate of interest, the annual percentage rate and the amount of the regular monthly payment; or In the case of any other credit transaction, the annual percentage rate of the loan, the amount of the regular monthly payment, a statement that the interest rate and monthly payment may increase, and the amount of the maximum monthly payment, based on the maximum interest rate allowed pursuant to section 3806 of title 12.

HOEPA allows the borrower to rescind the mortgage transaction up to 3-years after the closing of the loan if used as a defense to a foreclosure action (1-year if brought as an independent action outside of foreclosure), and was a refinance transaction of the borrower's principal residence. If the loan is subject to HOEPA and the lender did not provide the required notices 3 days before closing, then rescission of the loan may be available and all of the following MAY come into affect:
• A right to immediately rescind the transaction,
• A refund of all principal and interest payment made to the lender,
• A refund of all closing costs paid at the time of closing,
• A refund of any down payment made in connection with the loan,
• Termination of the mortgage,
• Keep the property if it is already paid off, and
Possible statutory damages in an amount equal to the sum of:
• Any actual damage sustained by such a person as a result of the failure to comply;
• Not less than $200 or greater than $2,000 if the home loan is not a home equity loan;
• Costs of the action, together with reasonable attorney's fees; and
• An amount equal to the sum of all finance charges and fees paid by the consumer, unless the creditor demonstrates the failure to comply is not material. An assignee of the mortgage is liable for all claims that could be brought against the original lender.

If you are facing a Florida Foreclosure Lawsuit, especially if your loan was a "high cost" loan, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Defense Lawyer today for a free consultation to see what potential foreclosure defenses , including potential HOEPA violations, are available to you.

The Truth In Lending Act, commonly referred to as TILA, is a federal law enacted by Congress to standardize the way credit is disclosed to consumers. Prior to TILA, lenders could disclose finance charges on monthly, weekly, or daily basis. This made credit appear a lot cheaper than it may actually be. After TILA was enacted, credit offerors must disclose finance charges in terms of an Annual Percentage Rate, or APR, and as a dollar figure. TILA covers closed-ended credit such as mortgages, and open-ended credit like credit cards and home equity loans.

The penalties for non-compliance with TILA make for good incentives for lenders to follow TILA regulations. The main penalty is rescission of the loan transaction. However, rescission is only available for refinancing of a homeowners principle residence, and not for a loan used to purchase the residence. Rescission means that the entire mortgage transaction is unwound and the homeowner is placed in the positions he would have been in if the loan had never closed.

The Lender may also be liable for statutory damages of:
• An amount equal to the sum of the greater of: 1) any actual damage sustained by such a person as a result of the failure to comply;
• Not less than $200 or greater than $2,000 if the home loan is not a home equity loan; and
• Costs of the action, together with reasonably attorney's fees

There is a 3-year Statute of Limitations beginning when the loan closes for TILA violations used as a defense to a foreclosure action. However, the Statute of Limitations is 1-year if brought as an independent action outside of foreclosure. The lender MUST act within 20 days after receiving notice of rescission to affect the rescission, or the borrower may keep the property without further obligation.

If you are facing foreclosure, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Defense Lawyer today to find out what foreclosure defense options may be available in your case.