You have enough on your plate if you are facing foreclosure. You are behind several months on your mortgage and you may lose your home. As if all of that was not distressing enough, a foreclosure may also cost you extra money in fees, deficiency judgments, and more.
These additional costs will make it even more difficult for you to pay your mortgage and get your life back on track financially. While unpleasant to think about, you will not be able to get around paying these extra fees, as they are outlined in your mortgage contract. A Broward County foreclosure defense lawyer can give you the best chance of avoiding these fees, and of keeping your home.
Fees in Foreclosure
You will face many different fees when facing foreclosure. These include:
- Title search fee: Once you start missing mortgage payments, the servicer will conduct a title search to ensure there are no other encumbrances on the property, such as a construction or mechanic lien. Any encumbrance on your property will have to be dealt with before possession can occur. The title search fee can cost hundreds of dollars.
- Attorney fees: You should always work with an attorney when you are facing foreclosure and unfortunately, they do have to charge fees for their services. However, you should find a lawyer who will offer a free consultation so they can review your case and outline some of your legal options. The cost of your attorney will depend on the complexity of your case, and the defenses that may be presented at trial. You will also have to pay the attorney fees of your lender if you are unsuccessful with your case. All of these fees can add up to thousands of dollars.
- Pre-acceleration late fee: Once the note has been accelerated, which means the servicer has demanded the loan be paid in full, the servicer is not allowed to assess late charges. Before the note is accelerated though, the servicer can charge you and that can cost hundreds of dollars.
- Private process server fee: Florida is a judicial foreclosure state, which means before the lender can repossess your home, they must file a lawsuit in civil court. When your lender files the lawsuit, they will have to serve you with the summons and complaint, and you will have to pay for that service. The cost is usually just under $100.
The Cost of Preserving the Property
Once your lender serves you with the foreclosure, they will inspect the property to determine its condition, and take steps to protect it and ensure it is properly maintained. They do this because they will have to sell the property once the foreclosure is over to recover the mortgage debt they took on and did not pay.
As the lender inspects the property, they will likely start by trying to determine if the home is occupied. Sometimes, when people are behind on their mortgage payments and know the home will foreclose, they simply walk away. These cases are known as zombie foreclosures. Even if you have walked away from your home, you will still be charged for the inspection and for any repairs that have to be done.
You will probably incur even more fees if you have already vacated the home. For example, the lender may have to set up lawn maintenance services, and trash removal, and will likely have the locks replaced. These are just a few of the services the lender may have to make sure the home has, and you will pay for them. It is recommended that you do not just leave the property, even if you are facing foreclosure. Remaining in the property will not only result in lower property preservation costs, but it will also allow you to prepare a defense that may allow you to keep your home.
Can You Avoid Fees in Foreclosure?
If your lender has improperly assessed a fee, you may be able to get it removed from the amount you owe at the end. A foreclosure defense lawyer in Broward County will look at the fees to determine if they are valid, or if removal is necessary. If the fees were properly assessed, there is likely nothing you can do about them and you will have to eventually pay for them.
Deficiency Judgments
Sometimes, homeowners are responsible for paying a deficiency judgment after the foreclosure process. This most often happens after a short sale. If your home is sold during a short sale, it will sell for less than the full amount you still owe on the loan. As such, the lender will not recover the full amount they loaned you when you first took out the mortgage.
The lender will still want to recover the debt you owe and so, they may petition the court to get a deficiency judgment against you. If they are successful, the judge will issue the deficiency judgment and you will be responsible for the amount.
A foreclosure defense lawyer in Broward County can draft an agreement between you and the lender in which the lender waives their right to pursue a deficiency judgment against you. Lenders will sometimes also pursue a deficiency judgment if they have agreed to a deed-in-lieu of foreclosure, so it is important to work with a lawyer who can advise you of your legal options, and protect your rights.
Our Foreclosure Defense Lawyers in Broward County Can Provide Sound Legal Advice
Facing foreclosure is one of the most stressful things a person could go through, but you do not have to go through it alone. At Loan Lawyers, our South Florida foreclosure defense lawyers can advise on your case and protect your best interests, so you face as few consequences as possible. Call us today at 954-523-4357 or fill out our online form to schedule a free consultation with one of our knowledgeable attorneys and to learn more about how we can help with your case.
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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.
