LPP Mortgage, Inc. Foreclosure Defense

LPP Mortgage, Inc., formerly known as LPP Mortgage Ltd., is a mortgage servicing company that handles mortgage payments and loss mitigation options for homeowners. As with so many other mortgage loan servicers, LPP Mortgage, Inc. does not always act fairly or honestly and this is devastating for homeowners. Fortunately, you do have rights that can protect you from these deceptive tactics. Below, our Fort Lauderdale foreclosure defense lawyer explains what these are and how you can make sure they are upheld.

The Right to Notice of Default

LPP Mortgage, Inc. must provide you with adequate notice that they are going to start the foreclosure process. The company must contact you, or attempt to contact you, no later than 36 days after your first missed payment to talk about possible loss mitigation options that can help you keep your home. LPP Mortgage, Inc. must also contact you no later than 36 days after any subsequent missed payments. Within 45 days of a missed payment, LPP Mortgage, Inc. must send notice in writing about your loss mitigation options. Generally speaking, the company cannot proceed with foreclosure until you are at least 120 days behind on your payments.

If LPP Mortgage, Inc. has not provided you with the appropriate amount of notice that your home is being foreclosed on, it can serve as a defense in your case. Florida is a judicial foreclosure state, which means that throughout the process you will have the opportunity to defend yourself. Like other mortgage servicing companies, LPP Mortgage, Inc. will send these notices in the mail. Always read your mail carefully and pick up any registered or certified mail, particularly if you are behind on your mortgage, to ensure you do not miss the notice.

The Right to a Breach Letter

The vast majority of mortgage loan contracts include a clause that obligates lenders and mortgage servicers to send borrowers written notice that their loan is in default. These are known as breach letters. Breach letters must be very specific and include certain information, which is as follows:

• Details about the default and its causes
• The action you need to do to correct the default and have the loan reinstated
• The date by which you must correct the default, typically at least 30 days from the date of receiving the notice
• Notice that if you do not correct the default, it will result in the property being sold

Curing the default and avoiding foreclosure usually requires you to pay the entire amount that is currently owed. You must make the payment by the date included in the letter as well as any late fees, back interest, and any other penalties. If you fail to do this and there are no other loss mitigation options available to you, it will likely start the foreclosure process. Because you must be a minimum of 120 days behind on your mortgage before foreclosure can begin, lenders and mortgage servicers such as LPP Mortgage, Inc. will usually send this letter around the 90th day of delinquency.

The Right to Notice of Foreclosure

You have the right to receive notice of foreclosure. Because Florida is a judicial process, you will receive a formal complaint and summons informing you that the foreclosure process has begun. If you do not receive proper notice, it can serve as a defense to foreclosure. Although this does not necessarily mean you can keep your home, it can force LPP Mortgage Inc. to start the foreclosure process again. This may give you enough time to catch up on payments or work out another option. A Fair Debt Collection Practices Act validation notice may be attached to a breach letter.

The Right to Reinstate

You may be able to protect your home and avoid foreclosure if you can make a lump sum payment that will bring you current on your loan. The lump sum payment must include all expenses and fees. Once you have made this lump sum payment, you then resume making your regular payments. To reinstate your mortgage loan, you must do so by a specific time. This is usually by 5:00 p.m. on the last business day before the sale of the property.

The Right of Redemption

The actual mortgage contract may provide you with the right to reinstate. It is important to review your loan documents carefully and to look for a reinstatement clause. Often these are titled “Borrower’s Right to Reinstate After Acceleration,” or similar language. If your mortgage loan does not include the right to reinstate, you should ask LPP Mortgage, Inc. if this is an option. Many lenders and servicers will allow you to reinstate your mortgage. If they do not, you can make this request to the court. Generally speaking, judges would rather avoid foreclosure if borrowers can bring the loan current.

The Right to Defend the Foreclosure

When lenders and servicers violate any of your above rights, it can serve as a defense to foreclosure. However, there are other common defenses, as well. For example, LPP Mortgage Inc. is a loan servicer. They are not usually the owner of the loan. Even when the company did purchase your loan in the past, they are not always able to prove that they own the loan. To prove that they own your loan, LPP Mortgage, Inc. must be able to produce the deed. Often, this is not possible because these important documents become lost along the way.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Defend Against LPP Mortgage, Inc.

If LPP Mortgage, Inc. has started the foreclosure process or has threatened to, you must speak to a Fort Lauderdale foreclosure defense lawyer. At Loan Lawyers, our experienced attorneys can advise on your rights, prepare a strong defense, and give you the best chance of keeping your home. Call our Florida foreclosure defense lawyer now at (954) 523-4357 or contact us online to request a free consultation and to get more information.