First Franklin Mortgage Loan Trust Foreclosure Defense

First Franklin Mortgage Loan Trust opened in 2007, just in time to take advantage of homeowners during the subprime mortgage crisis. First Franklin Mortgage Loan Trust has its headquarters in Dawson, Georgia, but they do business throughout the entire country. Many homeowners right here in Florida have loans with the institution and even those that do not are not always treated fairly by the company.

As one of the smaller financial institutions in the country, First Franklin Mortgage Loan Trust largely purchases mortgage loans from the bigger banks. They then try to collect the loans. Sometimes, the tactics they use to collect on the loans are unfair and in some cases, even illegal. Below, our First Franklin Mortgage Loan Trust foreclosure defense lawyer outlines the different complaints against the company and the defenses that can help save your home.

Complaints Against First Franklin Mortgage Loan Trust

First Franklin Mortgage Loan Trust has many complaints against it on the Better Business Bureau website. The company has a rating of 1.81 out of 5, and several poor reviews. Over the last three years, First Franklin has had 80 complaints closed in the last three years, and 41 complaints closed in the last 12 months.

The vast majority of complaints are concerning loans First Franklin Mortgage Loan Trust has offered customers. Many of the complaints stated that the customer tried to make a payment on their mortgage loan, but it was not accepted by the institution. For some, the online payment system was not working. In other cases, mortgage loan payments were not applied to the account, even though they had been paid. The company then proceeds with a foreclosure lawsuit, even though that is illegal. Fortunately, many defenses in these cases can help you keep your home.

Lack of Standing

A lack of standing is one of the most common defenses used in foreclosure cases started by First Franklin Mortgage Loan Trust. Again, the institution purchased many loans from larger banks just before the subprime mortgage crisis hit.

The term ‘standing’ is a broad one that refers to when one party has an actual stake in the results of a certain case. Standing gives a party the right to file a lawsuit. In other legal cases, standing is not usually used as a defense, but it is one of the most common in foreclosure cases. This is because so many financial institutions, including First Franklin Mortgage Loan Trust, purchased so many loans from bigger banks. These loans change hands many times and when they do, important documents such as deeds and titles get lost.

One of the most important first steps to take in any foreclosure case is to force the lender to prove that they own the loan. Many lenders cannot provide this proof and when that is the case, it can serve as a very valid defense and allow a homeowner to keep their home.

Predatory Lending Practices

Predatory lending happens when a sophisticated financial institution preys on desperate borrowers. Under the Florida Fair Lending Act, predatory lending practices are strictly prohibited. The Act requires lenders to disclose important facts about the loan they provide. Some of the predatory lending practices prohibited by the law include excessive late fees, increased interest rates on loans that are about to default, and charging penalties for prepayment after the first three years. It is not always easy to spot predatory lending, but there are signs you can look for. These include:

• Hidden terms, forged signatures, or incomplete disclosures in mortgage loan documents
• Changes in the name of the lender or the terms of the loan in the documents immediately before closing,
• Loans that have low monthly payments but a significantly larger final payment,
• Prepayment penalizes that are meant to continue the loan for as long as possible, and
• Inflated appraisal value of a home.

If you believe that First Franklin Mortgage Loan Trust has engaged in predatory lending practices, you must seek legal advice from a foreclosure defense lawyer.

The Statute of Limitations

In Florida, lenders have only five years from the date of default to file a foreclosure lawsuit. This is known as the statute of limitations and if a lawsuit is not filed before this time, the lender loses the right to file a lawsuit. Mortgage loans, though, are installment loans. This means that every default resets the statute of limitations, making it possible for lenders to successfully foreclose on properties even when the debt is greater than five years old. Still, when the statute of limitations has expired and lenders attempt to foreclose anyway, they are subject to claims under the Florida Fair Debt Collection Practices Act.

Bankruptcy

Filing for bankruptcy is a big decision and one that requires careful thought. Bankruptcy can protect you from foreclosure, while also giving you a fresh financial start. Florida has some of the most generous bankruptcy exemptions in the country, which allow homeowners to keep 100 percent of the equity in their home.

While homeowners may still lose their homes in Chapter 7 bankruptcy, it can prevent a foreclosure from appearing on their credit score, which is very harmful. Chapter 13 is a type of bankruptcy that does not discharge the majority of a borrower’s debt, but reorganizes it into a repayment plan. Past-due mortgage payments can be included in this plan, which can allow borrowers to keep their homes.

Our Fort Lauderdale Foreclosure Defense Lawyers Can Protect Your Rights

If foreclosure proceedings have been started against you, it is important to speak to a Fort Lauderdale foreclosure defense lawyer as soon as possible. At Loan Lawyers, our seasoned attorneys will review the facts of your case and determine the best strategy for you moving forward. Call our Florida foreclosure defense lawyer now at (954) 523-4357 or contact us online to request a free consultation with one of our experienced attorneys and to learn more.