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.  

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.   

Three Mistakes To Avoid if you are Facing Foreclosure

The foreclosure process can be a frightening one.  When a family is faced with potentially losing their home and having their lives uprooted, it is often a devastating time.  During foreclosure – more than any other time – it is crucial to keep a level head and realize that “this, too, shall pass.”  But while the process is happening, there are at least three mistakes you should avoid to increase your chances of coming out on the other side of the chaos with your health and wellbeing (and your home!). 

1. Handling it alone

The laws relating to foreclosure are complex and constantly changing.  If you try to handle the process on your own, you will certainly be at a disadvantage—unless you are a foreclosure defense attorney.  If you aren’t, then you should hire one.  Foreclosure defense attorneys know the process, can easily navigate it, and will be your most powerful asset when facing foreclosure. 

2. Moving out

You will find that in a foreclosure, a bank or mortgage company will tell you anything and everything to make sure that they come out on top in the situation—and this includes lies.  People falsely assume that just because a bank tells them that a sale date is scheduled, that that’s it—there’s nothing to do but move out.  This is far from the truth.  If you move out, you may give up your right to apply for a loan modification or short sell, or one of the many other options available to you.

3. Ignoring your summons

When banks and lenders sue for foreclosure, the homeowner usually only has 20 calendar days in which to respond.  Ignoring the summons doesn’t make the problem go away; it just means that you will lose your available recourses to save your home.