The foreclosure process in Florida is a long and arduous one. Most people who go through foreclosure have never experienced the process before and so, it is confusing as well. If you have received a notice of default, or you are just behind on your mortgage payments, you likely have many questions. Below, our Fort Lauderdale foreclosure defense lawyers answer the ones most frequently asked.
What Should I Do After Receiving a Notice of Default?
Under Florida law, lenders are required to send you a notice of default before they begin the foreclosure process. The notice should state that you are in default, the amount you owe, and that the lender intends to proceed with foreclosure. Many people think there is no hope and so, they ignore the notice. This is the worst thing you can do. After receiving your lender’s notice of default, you have only 20 days to file your legal response. Before filing your response, you should speak to a lawyer who can advise you on how to do it.
Do I Have Options if I Stopped Making Payments?
To many people, foreclosure seems like a hopeless situation, but it is not. You can fight the foreclosure, which may allow you to keep your home or at least delay the time until you have to vacate it. During that time, you may:
- Negotiate a loan modification with the lender
- Qualify for the home loan modification program offered by the federal government
- Resolve the matter with your lender
- Sell your home for full market value
- Refinance your home for a better rate
- File for Chapter 7 or Chapter 13 bankruptcy
A foreclosure defense lawyer can advise you of your options and help you through whatever process is right for your situation.
Do I Need a Fort Lauderdale Foreclosure Defense Lawyer?
As with any other legal case, you are not required to work with a lawyer when fighting foreclosure. However, an attorney will be your advocate and will always protect your best interests. Your lender has an attorney who is making sure their rights are upheld, and you should have someone doing the same for you.
What is a Short Sale?
A short sale occurs when a home is sold for less than what the borrower still owes on the mortgage. Your mortgage lender has to approve a short sale, so it is best to work with a lawyer who can communicate with your lender on your behalf. Lenders sometimes approve short sales because they know the current homeowner cannot make up the missed payments. The lender would rather get something rather than nothing and so, they may approve a short sale.
Why Did My Lender Return My Payment to Me?
It is concerning when you make a payment to your lender, trying to catch up on your mortgage payments, only for them to return it to you. However, after a lender has started the foreclosure process, the only payment they will typically accept is one for the whole amount of delinquency. You will likely also have to pay for their legal fees and any other costs associated with the foreclosure. If your bank has returned a payment to you or has refused a payment from you, it is time to speak with a lawyer.
How Much Time Before Foreclosure Begins?
The timeline of your foreclosure will largely depend on where you are located in Florida. Lenders generally cannot start the foreclosure process until you are three or four months behind on your mortgage payments. It used to be that once the process started, it would take three to six months until you had to leave your home. The courts in Florida have been dealing with an enormous backlog of foreclosure cases for many years so, the timeline now is closer to 12 to 24 months.
What if I Also Owe Money on Credit Cards and Car Loans?
Most foreclosure defense lawyers in Fort Lauderdale will tell you that your foreclosure takes priority over your other bills. A lawyer will try to ensure you can stay in your home during the process, but they may also be able to help with any unsecured debt you are carrying. A lawyer can advise on whether you can file for bankruptcy and outline your other legal options.
What is a Deficiency Judgment?
A deficiency judgment allows a lender to collect the remaining debt owed on the mortgage after foreclosure. For example, you may have a debt of $200,000 left on your home. The lender may only recover $150,000 in a foreclosure auction. They then have the option to go back to court and obtain a deficiency judgment against you, which would hold you responsible for paying the remaining $50,000. This is an enormous financial burden, at a time when you really cannot afford it anymore. A lawyer will work with your lender and ask them to waive their right to pursue a deficiency judgment.
My Lender Will Not Negotiate. What Do I Do?
Homeowners often hear that lenders are sometimes willing to negotiate and so, they try to engage in negotiations with the bank. Unfortunately, they only hear from the loan servicer that the lender wants its money and there is no possibility of negotiating. Loan servicers often do not have the authority to negotiate a lower amount or change any part of the loan. At this point, it is really important to speak to a foreclosure defense lawyer. A lawyer will know how to reach the loan officer who has the authority to change your loan. An attorney will also know how to negotiate a deal that is best for you.
Call Our Foreclosure Defense Lawyers in Fort Lauderdale Today
When facing foreclosure, you have a lot of questions. At Loan Lawyers, our skilled Florida foreclosure defense attorneys have the answers. We have successfully helped thousands of Floridians stay in their homes, and we want to put that experience to work for you. Call us today at (954) 523-4357 or contact us online to schedule a free case review and to learn more about your legal options.
- About the Author
- Latest Posts
Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
