Miami Foreclosure Defense Exit Strategies
Jacobs Legal understands there are many dynamics still changing during this foreclosure crisis.
- Banks are constantly revising policies and procedures.
- The costs of litigating foreclosures is skyrocketing along with the number of defaulting loans
- Well-defended foreclosures are severely clogging Florida courthouses
- Banks have taken back thousands of properties that still haven’t hit the market with no end in sight
- Several of the biggest “Foreclosure Mills” in Florida representing JP Morgan Chase, GMAC, Ally Bank, Bank of America and other lenders admitted submitting false affidavits in thousands of foreclosure cases
- President Obama and his administration need to find solutions to help homeowners facing foreclosure and unemployment
- Bankruptcy Reform could still threaten Banks who refuse to reduce principal owed or extend payment schedules
There will be no help for homeowners that lost their homes to foreclosure. While a borrower that does nothing should expect the worst case scenario, an effective foreclosure defense can create the best case scenario,
Here are just a few:
If you want to keep your property
- Fight the Foreclosure
- The Courts are overwhelmed with foreclosures
- Many bank lawyers are underpaid and overworked
- Many banks have lost important paperwork
- You can continue to live in or rent the property without making payments to the bank
- Loan Modification
- Banks that fear a difficult foreclosure may agree to many changes to rewrite your loan, including:
- Reducing the principal amount owed on the loan
- Converting an ARM to a Fixed-rate mortgage
- Steep Reductions in the interest rate
- Extended payments schedules
- Reduced monthly payments
- Refinance
- For every need, there is a market. Aggressive lenders and foreclosure relief laws could jumpstart funding to rescue people in foreclosure.
- borrower must be able to make regular monthly payments
- negotiate for reduction in principal amount owed
- Borrower must not have lost home to foreclosure
- New loan at affordable terms
- Forbearance
- Many lenders will agree to delay foreclosure proceedings
- Some will agree to cancel sale dates
- This allows you more time to decide on best exit strategy
If you don’t want to keep your property
If a borrower doesn’t pay their mortgage the Bank can:
- issue negative credit reports,
- take back the home, and
- collect a deficiency judgment
A formidable foreclosure defense is powerful leverage for a borrower to negotiate from a position of strength. It may mean the difference in avoiding the full economic hardship of a foreclosure.
- Short sale
- A bank can agree to accept less than the total amount owed on the loan to release the mortgage
- Borrower needs to find an investor or buyer willing to make reasonable offer to the bank
- Depending on the lender some borrowers could have their debt forgiven if the short sale closes
- Beware of Banks that demand a new promissory note or a deficiency judgment
- YOU DO NOT HAVE TO CLOSE THE SHORTSALE IF THE BANK REFUSES TO WAIVE THE DEFICIENCY
- You should expect banks will pursue deficiency judgments
- Deed-In-Lieu
- In a deed-in-lieu scenario, the bank avoids litigation and the borrower agrees to sign over title to the property.
- Some Lenders will waive their right to a deficiency judgment
- The Mortgage Forgiveness Debt Relief Act of 2007
- established a three year window
- debt relief not taxable under certain circumstances
- Please consult your accountant or tax advisor for details
Available 24/7 Call Now. Call Jacobs Legal, PLLC for a consultation or send us an e-mail. We can evaluate your case today.
