If you have been sued for a mortgage foreclosure, all is not lost, but you have to contact us immediately to get the process started. You have several legal options that we will walk you through, including a loan modification or strategic default. The process is very simple.
Our Foreclosure Defense Process
Fees & Contingency
If your case qualifies, we may be able to defend your foreclosure for a low monthly fee based on a partial contingency basis.
If we take your case on a contingency basis, you will not be responsible for any fees or costs. If we do not take your case on a contingency basis, but you would like to apply for a loan modification, short sale, or waiver of a deficiency, I may still be able to defend your case for a low monthly fee based on a partial contingency basis.
Your legal options for defending a foreclosure
There are several legal options for a client facing a foreclosure in Orlando, but it is important to get the process started immediately to fit within the 20-day window from the time you are served.
1. Loan Modification
In a loan modification, the bank may agree to temporarily modify your monthly payments to help you through your financial hardship. The type of loan modification offered to you will depend on your type of mortgage. For example, a Fannie Mae, Freddie Mac or private loan will have different requirements for a loan modification. Despite what many people think, the banks will rarely reduce the principal owed. It is very typical for a bank to reduce the monthly payments, and/or extend the length of the loan and to modify the loan to allow for a balloon payment at the end of the loan.
2. Short Sale
Another option is a short sale. A short sale is a sale of real estate in which the proceeds from selling the property will not pay off the amount due for the mortgage, where the property owner cannot afford to repay the mortgage’s full amount, and where the bank agrees to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditor is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties. We never recommend clients a short sale unless the bank agrees to waive the deficiency.
3. Deed in Lieu of Foreclosure
In this case, you give the house to the bank by signing a deed. It is very important for the borrower to make sure that the Deed in Lieu of Foreclosure approval includes a waiver of the deficiency. If the deficiency is not waived, the lender may come after the borrower for the difference between what is owed and the amount the bank gets when it sells the property by garnishing the borrower’s wages or bank accounts. I never recommend clients to do a deed in lieu of foreclosure unless the bank agrees to waive the deficiency.
Depending on your case, you may be able to file for bankruptcy. Before discussing bankruptcy, it is Jose Oliveira’s opinion that if the only issue for you is the foreclosure of your house and you do not have a lot of consumer debt that you cannot pay, you should be very clear as to why you are filing the bankruptcy. If you are filing the bankruptcy just to stop the sale of the house, you may be delaying the sale of the house for only two or three months and may be waiving your rights to defend the foreclosure at the county court level.
Having said that, filing a bankruptcy can have a very positive effects in a mortgage foreclosure defense. First, it can force the bank to mediation and to consider you for a loan modification. Second, the bankruptcy can strip the second mortgage and eliminate the homeowner’s association liens, which may help you to afford the first mortgage once it is modified. Finally, the bankruptcy will stop the bank from enforcing a deficiency judgment against you in the event the house is sold through an auction and the proceeds from the sale of the house are not enough to cover the amount of the mortgage. If we believe that bankruptcy is the right choice for you, we will bring in another trusted attorney to help you with the bankruptcy as our speciality is foreclosure and real estate law.
Do not wait – contact us now to get started
You must act now! You only have 20 days after you are served with the foreclosure to answer the complaint to preserve your legal rights. The bank has experienced attorneys representing its interests. You should have an experienced attorney representing your interests. The bank’s attorney does not represent you and cannot give you legal advice – you need your own attorney. You have nothing to lose and everything to gain by speaking with us in an initial free consultation.
Call now at 321-445-9458 to schedule a no obligation FREE CONSULTATION.