Common Mistakes in Foreclosure Cases

Whether your lender has informed you they are going to foreclose on your home, or you are just behind on mortgage payments, you are likely very concerned about the future of your home. It is true that after you miss a few payments, usually about four, your lender may start the foreclosure process. That still does not necessarily mean that you will lose your home.

There are many defenses available in foreclosure cases, and they can prevent you from losing your home. They can also shield you from other negative consequences, such as having a deficiency judgment filed against you. However, one small mistake could really hurt your case. Below, our Fort Lauderdale foreclosure defense lawyer outlines the biggest mistakes made in foreclosure cases, and how to avoid them.

1. Not Communicating with Your Lender

Your lender will try to contact you several times before they start the foreclosure process. Many people ignore these communication attempts because they believe ignoring the problem will make it go away. It will not. It will only make things worse. Homeowners also often think their lender will be upset and angry when they call, but that is not true, either.

If your lender is contacting you, it is likely because they want to work something out with you that allows you to keep your home and continue making mortgage payments. Always respond any time your lender tries to communicate with you to learn more about the options available to you.

2. Failing to Negotiate with Your Lender

Although you may owe a certain amount to the lender, you could also negotiate for a lower amount. Many people fail to even consider this option because they do not have a lot of experience negotiating. That is natural, but a Florida foreclosure defense lawyer will have the necessary experience to successfully negotiate a lower amount for you.

3. Not Understanding All of Your Options

The sad truth is that when a lender starts the foreclosure process, some people lose their homes. However, not all homeowners do. There are many defenses available in foreclosure lawsuits, and using any one of these could prevent you from losing your home. Other options can also help protect your credit score in case you do lose your home. These include negotiating a deed-in-lieu of foreclosure with the lender or selling the home through a short sale. Filing bankruptcy can also help you keep your home, while also discharging other debt that could make it easier to pay your mortgage payments.

4. Intentionally Causing Property Damage

You may become very angry with your lender, particularly if they do not want to negotiate an agreement with you. You may become so angry in fact, that you want to damage the property. It may sound unfathomable, but it happens all the time. It is critical that you do not damage the home even if it looks like you will lose it. Your lender could press criminal charges against you for vandalizing the premises, and you will most likely have to pay for any damage you caused. That could make things very difficult, especially if you are already having trouble making your mortgage payments.

5. Refusing to Perform Regular Maintenance

You may think that while the lender can hold you responsible for any property damage you cause, there is nothing they can do about negligent maintenance. Although that may be true, refusing to perform regular maintenance can still hurt you in the long run. If you do not mow the lawn, pull the weeds, and make small repairs, it will be harder to sell the home in case that is ever necessary.

Many people leave their homes immediately after they learn the foreclosure process has started. This is a mistake in and of itself, but even if you leave for a short period of time, it is important that you do not turn off the utilities. The home must remain in good condition, which means making sure wildlife cannot get inside, and that the home is not so damp that mold could start to form.

6. Not Saving for After the Foreclosure

Regardless of how your foreclosure case ends, you will need money afterward. If the lender is successful with their foreclosure case, you will have to find a new place to live. A foreclosure will also affect your credit score, which could make it even more difficult to find a place to rent. Start saving as soon as you learn the lender is considering foreclosure so you can pay rent, moving expenses, and security deposits.

7. Keeping the Home

Many people hold onto their property because of sentimental reasons, but that is a mistake. You may be able to keep your home and in some cases, this is the best option. Before determining whether or not this choice is right for you though, take a great deal of consideration. If you cannot pay your current mortgage payments, you have to consider whether you will be able to pay them in the future. You also have to ask yourself if you think you can afford the property taxes, cost of regular upkeep, and the other expenses associated with the home. If you cannot, you will only find yourself in the same situation in the future.

8. Not Having a Plan

Thinking about foreclosure is never pleasant and so, you may try to keep your mind off of it. However, it is critical that you give the foreclosure the considerable thought it deserves. Regardless of how the foreclosure case goes, you will need a plan moving forward, and now is the time to start thinking about it. Think about whether you will need to move to a new home, start packing your belongings, and other tasks related to moving. Even if you plan to defend the foreclosure and keep your home, you will need a plan for how you will pay your mortgage so you do not have to face foreclosure again.

9. Not Working with a Foreclosure Defense Lawyer in Fort Lauderdale

You are not required to work with a Fort Lauderdale foreclosure defense lawyer, but an attorney will give you the best chance of a successful outcome. At Loan Lawyers, our skilled attorneys know the best foreclosure defenses and will use them to obtain an outcome that is most favorable to you. Call us today at (954) 523-4357 or contact our Florida foreclosure defense lawyer online to schedule a free consultation.