What Homeowners Should Know About Foreclosure Defense

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Many homeowners across the nation are finding themselves in a difficult predicament and facing foreclosure on the home that they have worked so hard to attain for their family and loved ones.  Receiving a notice of intent to foreclose can be a devastating event; however, not all hope is lost.  Foreclosure defense is a way of actively fighting back against the lender to either stall the process of foreclosure or stop it altogether. 

Since banks have significantly changed the way in which they conduct business, working with your lender during times of financial distress is not as easy as it used to be.  Through mortgage securities, lenders package and sell pools of mortgages to investors and only act as “servicers” who collect payments and issue default notices.  The system is set up in such a way to where these servicers (that you think of as your lender) are making money by foreclosing on your home and losing money in working with you to modify the terms of your mortgage.  Put simply, foreclosure defense has become a necessity if you want to keep your home. 

 

Mortgage defense consists of a process in which an attorney who understands the laws and regulations around the mortgage and lending industry requires your lender to prove they have the right to foreclose on your home.  This works as a stalling tactic, especially since many lenders have already sold the mortgage to an investor as part of a mortgage pool, and might have difficultly proving on paper that they own the mortgage. 

This process often reveals errors on the part of the lender, such as an inability to produce the original note or proof that they have participated in “robo-signing” of documents.  Such errors allow the homeowner additional time to get caught up financially, which often results in saving their home.  

Using the FDCPA in Foreclosure Defense

If your home is under the threat of foreclosure, you are likely overwhelmed.  In addition to the harassing phone calls, homeowners facing foreclosure also have to try to “keep their head on straight” and make important decisions that affect their family’s lives—something that is almost impossible to do when a creditor is calling you multiple times every day.  This situation can certainly wreak havoc on anyone’s level of ability to handle stress, which makes fixing the problem even more difficult.  However, there is good news.  According to Section 805(a)(2) of the Fair Debt Collection Practices Act, your lender is prohibited from calling you about your home’s foreclosure if they know that you are represented by a lawyer.

 

That’s why if you live in the Miami, Florida area and are facing the threat of foreclosure, it is extremely important that you reach out to a qualified bankruptcy attorney who can help you find ways of debt relief such as Chapter 7 or Chapter 13 bankruptcy.  This kind of relief provides a legal means in which you can not only potentially save your home from foreclosure—you can also stop the harassing phone calls and stress related to them.   This “breathing room” will give you time to think clearly and do everything within your power to save your house and save your family the turmoil and emotional trauma of having to move out of the place they know as “home”.

If your lender harasses you after seeking counsel in a foreclosure, they will be in violation of both the Federal and Florida versions of the Fair Debt Collection Act.  Once you have told them the name and phone number of your attorney and that you don’t want them to contact you anymore (and sorry just shouting “Speak to my attorney” doesn’t work), any further phone calls from them could result in $4,000 fines for them and the opportunity for a lawsuit from you.  In our office, we deal with hundreds of collection calls each week so that our clients can have peace of mind when their phones ring.  It’s only been on rare occasions that we’ve had to remind the collection agencies about the law.

The Importance of Showing up in Foreclosure Lawsuits

Woody Allen—the famous writer, actor and director—once said, “Eighty percent of success is showing up.” This statement is especially true when it relates to foreclosure defense and showing up in court.

 

When you get your first foreclosure notice, it may seem like the end of the world.  Visions of shame, horror, embarrassment and living on the streets may fill your mind.  Take a deep breath.  (Note- if you get a notice that says your property is going to be sold on a specific date, stop reading the rest of this article and speak to a bankruptcy/foreclosure defense attorney now.)

While your first reaction might be to ignore the situation and hope that it works itself out, not showing up to court is the worst thing you can do. You run the risk of having your foreclosure go through much more quickly than if you had taken a few simple steps to slow the process down.  So, when you get the foreclosure notice go speak to a qualified bankruptcy and/or foreclosure defense attorney, but no matter what, don’t miss that court date.

A bankruptcy attorney will be able to assist you in preparing foreclosure defense and can potentially help save your home through Chapter 13 or Chapter 7 bankruptcy.   

Foreclosure Rescue Scams - Don’t be a Victim!

“Stop foreclosure now!”  Ever seen a handmade sign bearing these words on the side of the road?  Or perhaps you’ve received an email from someone who promises to work with your bank and keep foreclosure from happening?  Foreclosure defense and “avoid foreclosure now” promises are everywhere, especially in a market that is still struggling.

    

While it is certainly important to seek help when you are facing a foreclosure on your home, knowing who to trust for the right kind of help is crucial.  The wrong kind of help can put you deeper in the financial hole than you were when you started.  Sure, there are a lot of people who say they can help you stop your foreclosure.  But are they legitimate?  Here are scams to watch for:

The "Forensic Audit"

Forensic auditors will attempt to collect an up-front fee from you in order to “look over” and “assess” your mortgage and foreclosure documents.  They will then use their “expertise” to review your mortgage documents and create a report how you can avoid foreclosure.  The funny part is that this process of reviewing the paperwork is just the first step that qualified foreclosure defense attorney will make and it’s an important one, but not enough.  That’s why the “forensic audit” promise is a scam if that’s all they’re offering. 

Rent-to-Buy Schemes

In this scam, a con artist will say that if you give them the title to your house, you can stay there as a renter and buy it back from them later.  They will tell you that when the title is surrendered to them, they can refinance it with their good credit to prevent losing your home.  What they won’t tell you, however, is that these scams often involve impossibly difficult “buy back” arrangements, allowing these new owners to walk away with your house AND your money. They might also raise the “rent” they agreed upon at the beginning and forcing eviction if you can’t pay the higher amount.  

Should I Try a Short Sale if Threatened with Foreclosure?

Has Your Lender Initiated a Foreclosure? Here’s What to Do

There are no specific rules for how to handle things if your home is already in foreclosure.  Lenders vary in how they handle things, and beyond this, the laws vary from state to state.  In some states, the foreclosure process may take months; in others, everything could happen within a matter of days.  This is why it is crucial to speak with a foreclosure defense attorney immediately if your lender has already placed your home in foreclosure. 

The best thing you can do is fight back.  The more you fight, the longer the foreclosure process will take—this will allow you more time to get in a better financial situation and work to keep your home. Even if the foreclosure goes through, you should continue to fight because of the redemption period.  This is a period of time in which former homeowners can buy back their property if they decide to do so.  This redemption period varies from state to state: it is 30 days in Alabama and up to 10 months in Delaware. 

The thing to keep in mind is that the foreclosure process isn’t a simple one.  There is a lot of paperwork that has to cross a lot of desks, and anything you can do to stall that paperwork between desks will help you find more time (and money!) to get your home out of foreclosure.  Speaking with an attorney early in the process will be your best bet to help you stay in your home.

Florida Foreclosures – What Happened and How Can I Protect My Home in Florida?

Let’s get one thing straight: the reason that you need professional legal assistance when you are facing the potential foreclosure of your Florida home is because the bank or mortgage company who owns your mortgage will not look out for your best interest.  The global financial crisis that resulted, in part, from fraudulent business practices on Wall Street created a situation in which your home mortgage – and the rights to it – has likely been sold as bonds to multiple stakeholders.  What this means is that there is no one at your bank or mortgage company who will lend a sympathetic ear to your financial hardships, regardless of how devastating they might be, because there are multiple corporate interests involved. 

In fact, many of these companies have moved your mortgage around between themselves that they are unable to provide original documents proving that they, indeed, hold the loan.  This has created a situation in which companies are using falsified documents to take your home from you—and these documents are passing through the courts unnoticed because of the wave of foreclosures that are happening around the state.  The same companies who participated in throwing Floridians in a tailspin with sub-prime mortgages and unethical business practices are now welding their power to take residents’ homes away from them. 

This is why a foreclosure defense attorney is a valuable asset to have on your side if you are facing the threat of foreclosure of your Florida home.  With the right defense in place, you will have a much greater chance of delaying, or even winning, the foreclosure claim that has been placed against you.  Foreclosure defense attorneys know what to look for to make sure that your bank or mortgage company is playing by the rules (because so many of them don’t!) and know all of the legal processes to keep you in your home for as long as possible, even if you have missed a payment on your mortgage.  

Florida Foreclosure Defense Basics

Foreclosure Defense is a one-two-three punch of legal defense within the court system, financial planning, and debt solutions that are determined outside of the courts. Beyond providing a legal defense for you when you and your family are faced with a foreclosure, a foreclosure defense attorney will conduct a thorough financial analysis of your debts and assets, and help you find the best possible route out of your financial trouble so that you have a better chance of keeping your home.  Foreclosure defense attorneys also conduct negotiations with your creditors, particularly your bank or mortgage company who is foreclosing on your loan. 

Make no mistake – a foreclosure process is indeed a legal process that can happen quickly and you will need the assistance of a legal professional to put up a fight for your home. Foreclosure defense attorneys will help you delay a foreclosure or, in many cases, avoid a foreclosure altogether, by providing you with the legal defense you need to stop the mortgage company from taking your home and taking advantage of corporate loopholes in the process.  They will have lawyers on their side; you should do the same if you want your legal rights protected. 

When you are given a foreclosure summons, you will have 20 days from the date you receive your summons to respond in writing or lose the right to do so.  In Florida, the foreclosure process can take several months or it can go quickly, depending on the particular circumstances around your foreclosure and whether the courts in your particular jurisdiction are backlogged with foreclosures.  Particularly if you have missed a payment on your mortgage, you should contact a foreclosure defense attorney who islicensed in Florida and can give you an estimate of the timeline of foreclosures in your area of the state.    

Why You Shouldn’t Trust Your Mortgage Company If You Are In Foreclosure

When you are in a foreclosure, it’s anyone’s bet what you’ll hear from your lenders.  When their money is on the line, rest assured that lenders will do anything and everything they can do to protect it.  Consequently, there is one simple reality that will rear its ugly head in almost every circumstance: when it comes to keeping their financial interests protected, your lenders will not always tell you the truth. 

Many people facing foreclosure make the mistake of trusting their lenders on a host of lies that end up being detrimental to homeowners when everything is said and done.  These lies cost homeowners valuable opportunities to fight the foreclosure or buy some extra time to catch up on payments.  Some common lies that homeowners hear are “we can only help you if you’re 90 days late” or “if you are in a loan re-modification plan, we won’t foreclose.”  Others might hear, “we don’t want your home and want to keep you in it.” 

The fact is that although you should stay in contact with your mortgage company, you shouldn’t believe anything they tell you unless it is in writing first.  And while you should be as up front as possible with your lenders concerning your situation, know that anything you say or do could be used by them to facilitate the process of taking your home.  This is why it is important to speak with a foreclosure defense attorney when you are facing the threat of foreclosure.  It might be the best defense you have in a situation when big corporations and lenders are only looking out for their best interests and bottom lines.