When Do You Need a South Florida Foreclosure Defense Lawyer?

It is no secret that many. homeowners in South Florida are in trouble as the federal moratorium on federally-backed mortgages comes to an end. The moratorium on federally-backed mortgages was first set to expire at the end of June, but the Biden Administration extended it to July 31. Considering that is just a matter of weeks away, it does not look as though it will be extended once again. Once the moratorium officially expires, it is said that thousands of homeowners will face foreclosure in South Florida.

As the extension on the moratorium is about to come to a close, many people may be wondering when they need to speak to a South Florida foreclosure defense lawyer. If you are in this situation, there are some guidelines on when you should contact a lawyer.

As Soon as Possible

If you have already missed several mortgage payments, you may want to speak to a foreclosure defense lawyer as soon as possible, even if your lender has not threatened you with foreclosure action. Lenders typically will not start the foreclosure process until you have missed two or three mortgage payments. Still, if you have missed even one, you likely know that you are in financial trouble, and there is a chance that you will miss upcoming payments, too.

While you can hire a foreclosure defense lawyer in South Florida at any time during the foreclosure process, it is always best if an attorney can start working on your case from the very beginning. When a lawyer has been working a case from the very start, they do not have to waste time getting caught up on the details of the case, and they can provide the best legal advice from the very beginning. All of this benefits you, and the attorney, so you are much more likely to secure a positive outcome in your case.

When You Receive a Default Notice

If you have already received a default notice from your lender, it is crucial that you speak to a foreclosure defense lawyer as soon as possible. It is at this point that you likely have the most options in your foreclosure case, such as paying a lump sum payment to get caught up on your payments. By speaking to an attorney right away, you will learn of your options, that do not necessarily always include losing your home.

If your lender has already sent you a notice of default, it also means that they are ready to take legal action and start the foreclosure process. Florida is a judicial state, which means your lender must file a lawsuit against you in order to foreclose on the home. Any time you are facing legal action from another party, you are always advised to work with an attorney, and that advice is perhaps never more important than when your home is at stake.

You are Considering Refinancing

Refinancing is often a great way to stop the foreclosure process. When you refinance your mortgage, you are essentially getting a whole new mortgage. Refinancing was an option many people turned to during the pandemic because it allowed them to refinance a loan that had better interest rates, better terms, and even different principal balances.

You can enter into refinancing negotiations with your lender on your own, but foreclosure defense lawyers are skilled negotiators. They know how to work with the biggest and smallest lenders to not only successfully get your loan refinanced, but under very favorable terms, as well.

You are Considering a Loan Modification

A loan modification differs from refinancing your mortgage. Through a loan modification, you can change many of the same terms you can with refinancing, but you are not left with an entirely new home loan. Just as a foreclosure defense lawyer can help you negotiate with the lender during refinancing, they can also help with a loan modification. Foreclosure defense lawyers negotiate loan modifications on a regular basis, so they have the necessary experience to negotiate very good terms for your loan modification, too.

You are Going to Let the Foreclosure Happen

Many people facing foreclosure assess their situation once the foreclosure process has started and realize that they simply cannot afford to keep their home. In these cases, homeowners sometimes decide to simply pack their bags and walk away without disputing the foreclosure. Although this is always an option and for some, a good one, it is still important to work with a South Florida foreclosure defense lawyer.

It is a common misconception that if you walk away from a home in foreclosure, you do not owe anything to your lender. Sadly, this is not always the case. If you walk away from the home, the lender will likely sell the home during a short sale, in which they will not recover the full amount of the loan. To recoup that remaining balance, the lender may pursue a deficiency judgment against you. If they are successful, you will still be legally responsible for paying that amount if the lender is successful with their petition.

A foreclosure defense lawyer will know how to help you avoid this deficiency judgment even if you do not plan to fight the foreclosure. Deficiency judgments can add up to thousands of dollars and if you could not afford to make your mortgage payments, you will likely find a deficiency judgment burdensome as well. The help of a foreclosure defense lawyer in this instance is often invaluable.

Call Our Foreclosure Defense Lawyers in South Florida Today

Whether you have just missed one or two of your mortgage payments, or the lender has already started the foreclosure process, you should never go through it alone. Our South Florida foreclosure defense attorneys at Loan Lawyers can provide the sound legal advice you need, and advise you of your options depending on the facts of your case. Call us today at (954) 523-4357 or fill out our online form to request a free consultation with one of our skilled attorneys.