Foreclosure Defense Law – Why It Is Important to Defend Your Home

No one in Fort Lauderdale, or in the entire country, ever wants to face foreclosure. If the bank starts the foreclosure process on your home and they are successful, you will eventually be evicted from the home. This will not only disrupt your life, but it will also have a dramatic impact on your future, and the future of your family. Foreclosure lawsuits are overwhelming, and you may be tempted to simply ignore the lawsuit. Florida is a judicial foreclosure state, meaning the lender must first sue you and then argue their case in court before they have the right to foreclose on your home.

As with any lawsuit, it is critical that you do not ignore it if the lender has sued you. If you do, you will likely automatically lose your case and subsequently, lose your home. Too many people think that if they simply ignore the lawsuit, it will go away, but that is never the case. Ignoring a foreclosure lawsuit will only leave you with fewer options and potentially leave you without a defense that could result in you losing your home.

The Lender May Obtain a Default Judgment

Before a lender can file a lawsuit against you to foreclose on your home, they must first send you a notice of default. You will likely receive this notice once you are 30, 60, or 90 days past the due date of the mortgage payment. Once the lender has sent the notice of default, they can then proceed with the lawsuit in the foreclosure process.

If your lender does not send you the appropriate notice of default, you can use that as a defense in your foreclosure lawsuit. Note though, that this will likely only stall the process and will probably not stop it altogether. The lender will only have to rectify the situation by sending the appropriate notice of default, which will allow them to then continue on with the lawsuit process.

After receiving the notice of default and the paperwork associated with the lawsuit, it is essential that you do not ignore it. You will be served with two important documents. The first is the complaint, which will outline the lender’s arguments against you. The second is the summons, which tells you the day of your court hearing and allows you to respond to the lawsuit. You have 20 days from the date you are served with papers to respond to the lawsuit.

A failure to respond to the lawsuit will likely result in a default judgment against you. This essentially eliminates the possibility of raising defenses that can help you save your home and will allow the lender to automatically win their case. This is perhaps the biggest reason why it is important to defend your home.

You Will Give Up Your Right to a Loan Modification if You Choose Not to Defend

It is important to remember that just because your lender has filed a foreclosure lawsuit against you, it does not mean you will automatically lose your home. Until the process is over and a judge has made a decision, you still own your home. Throughout the process, you still have many options and one of them is speaking with your lender about a possible loan modification.

Through a loan modification, you can change certain terms of the mortgage and make it more affordable for you to pay. A loan modification can change the interest rate, the length of the loan, and even the principal loan amount, among other terms. However, a loan modification is only possible if you respond to the lawsuit and are prepared to defend against it. If you do not, a judge will likely automatically side with the lender and fast-track the foreclosure process.

You Will Give Up Your Right to Discovery

Any civil lawsuit will involve a discovery phase. During this stage, both sides can ask the other party for certain information. Part of this information includes the evidence the lender plans on using against you.

Many people underestimate the importance of the discovery phase. It is a crucial step in reviewing the lender’s case so your Fort Lauderdale foreclosure defense lawyer can prepare a defense and refute the arguments of the lender. Typically, a lawyer will ask for information showing that you have fallen behind on your mortgage payments, that they own the mortgage, and that they have followed proper foreclosure procedure.

If you do not try to defend against the foreclosure, you lose the opportunity to see what evidence the lender has against you. Again, a judge will most likely issue a default judgment in favor of the lender, and eventually, you will lose your home.

You May Have to Repay the Mortgage Anyway

Along with trying to secure a foreclosure on the home during the legal process, your lender may also try to obtain a deficiency judgment against you. If they are successful, it means they have the legal right to pursue the amount you still owe after they have obtained the right to foreclose on the home. Too many homeowners think one of the benefits of allowing the lender to foreclose is the fact that they will no longer owe the money on the mortgage. Sadly, that is not always true.

A Fort Lauderdale foreclosure defense lawyer can defend against the foreclosure lawsuit. However, even if they are unsuccessful and you end up losing your home, a lawyer will also defend against a deficiency judgment. Also, if they are able to negotiate an agreement with your lender, such as a deed in lieu of foreclosure, a lawyer will also include a clause within the agreement indicating that the lender has waived their right to pursue a deficiency judgment. Again, these options are only possible if you defend the lawsuit from the very beginning.

Our Foreclosure Defense Lawyer in Fort Lauderdale Can Help You Keep Your Home

If you are in fear of losing your home, our Fort Lauderdale foreclosure defense lawyer can help. At Loan Lawyers, we know the defenses available that may allow you to keep your home and will use the law to protect you from many of the potential negative consequences. Call us today at (954) 523-4357 or contact our Florida foreclosure defense lawyer online to schedule a free consultation and to learn more about your legal options.