Florida Law Attorney » Real Estate Law

Preventing Foreclosure

RealEstateLawToday — Wed, 08 Sep 2010 01:52:34 +0000

Taking steps now can considerably increase your chances of preventing foreclosure. Even when your lender is telling you that your house is going to be repossessed. But you are probably feeling scared, depressed, angry or embarrassed. Blind panic and anxious worry can make the most sensible among us lose the ability to see the wood for the trees. Stop, take a deep breath, and get yourself a plan. The home foreclosure process is not inevitable. You may not have to go to court or have your home repossessed. But you must take action now. Keep a clear head and gather your facts. However daunting, you must not give up. Easy to say, but it is the most important part of this plan. Call your plan ‘Save My Home From Foreclosure’ to keep you motivated, then start taking action. Find out what your legal rights are, for support and protection, it’s never too late to find an alternative to going to court. You need to start taking action as soon as possible – and that means now! Look up and access any help and support that is available to you in your area. Research recommended guides and resources to help you make the right choices. Don’t do nothing. You may have received letters from your lender that have made you feel frightened and helpless. Summon all your inner strength and focus it on preventing foreclosure. Daunting as it may be, it is down to you to get your finances in order! Now is not the time to leave bills unopened, bank statements unread. Burying your head in the sand will not save your home from foreclosure. Organise your paperwork, and take a good, hard look at your financial situation. Crucially, you must be honest with yourself, otherwise it’s pointless. Find out exactly what you owe and who you owe it to. Make a detailed list of all your monthly income and spending, down to the last cent. Keep a diary of your spending from now on. If you have never done this before, you may be surprised by the results. Deal with the situation head-on. Make a budget within your income, and stick with it, there is no other way!

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Steps to Stop Foreclosure

RealEstateLawToday — Wed, 08 Sep 2010 01:52:21 +0000

In these times of recession and economic vagueness, many people face the fear of losing their property or their home. You know how hard you’ve worked for that home and it is a very disturbing situation for most who cannot find any suitable solution to their problem when they are very low on finance. These unnecessary worries can be put to rest and foreclosures can be avoided by some simple and effective steps. You are obviously distressed when your home is due for foreclosure and you are in a financial crisis, but giving up should never be your decision. You have to remain calm and work on the alternatives that can help you get rid of any possible foreclosure. The sooner you let the bank and your lender know everything about your financial position, the better your chances are that they can try to work out a solution to help you. Finance lending institutions don’t want your home; they just want their money to be paid on time. But due to the agreement the lender has the right to foreclose your home if you fail to pay your due fees. Since banks make money from lending you mortgages, they would rather have you stay if it is possible. There are a number of solutions available. You could apply for loan modification programs where you would have reduce payments and lower interest rates if you are qualified for them. The Home Affordable Modification Program (HAMP) introduced by the Obama government provides incentives to lenders which offer loan adjustments to homeowners. The bank could either come up with a new and affordable repayment plan for the left amount, or it could even apply the balance due to the last end of the credit. Various factors are to be considered so as to qualify you for these forbearances such as your current ability to pay the loan, any hardships that you face, the number of people living in your home and if you are living in the same property when applying for a loan amendment.

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Home Loan Modification Programs

RealEstateLawToday — Wed, 08 Sep 2010 01:52:05 +0000

Home loan modification programs are quickly becoming a key defense against foreclosure. With millions out of work or having their work hours cut, an increasing number of families are finding it hard to make ends meet. Another contributing factor is that in recent years, many homeowners chose to go with an adjustable rate mortgage. As interest rates went up, so did their payments. The huge spike in foreclosures has had a devastating effect on the banking industry, with some banks having to close their doors for good – some even being taken over by the government. Foreclosures have always been a part of the banking business, but with so many loans not being repaid according to schedule all at once, it has shaken the whole industry. In order to stem the tide of these unfortunate and very costly foreclosures, the Federal Government has taken measures to help more families stay in their homes by encouraging banks to consider adjusting the terms of the mortgages of those in need. Sometimes the terms of the current loan are altered, in other cases the loan is completely reworked. How can this help you? It means that for the person looking for a home loan modification program, things are much easier than they used to be. Let’s take a closer look at the process. The bank will want to get a good idea of your overall financial situation.

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Automatic Stay in Bankruptcy

RealEstateLawToday — Wed, 08 Sep 2010 01:51:53 +0000

The automatic stay provisions of the U.S. Bankruptcy Code are some of the most powerful and immediate protections for people who need to be shielded from their creditors. The stay, however, is not perfect nor permanent. In fact, there are limitations built into the automatic stay provisions that limit the effectiveness for people who have filed prior bankruptcy cases. In the old days (before the current law came into effect in 2005) people could file case after case in rapid succession, dismissing the ones that didn’t work out and filing new ones to stop their creditors. For most people, these “serial filings” (as they came to be known) were made in good faith and with the best of intentions; someone would file a Chapter 13 bankruptcy to stop a foreclosure, they’d miss a few post-petition payments and the mortgage lender to obtain relief from the automatic stay. Then the homeowner would get a better job and be able to make the payments. So rather than stay in a Chapter 13 without the benefit of the stay, they’d dismiss their case voluntarily and file a new one – and get a new automatic stay in place to protect them. Not so anymore. Under the 2005 amendments to the U.S. Bankruptcy Code, a case is presumptively filed in bad faith and subject to a limitation of the automatic stay if a prior case was filed and dismissed within the past year. If 1 previous case under any of chapters 7, 11, and 13 in which the individual was a debtor was pending within the preceding 1-year period, then the automatic stay is in effect for only thirty days.

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Home Foreclosure

RealEstateLawToday — Wed, 08 Sep 2010 01:51:37 +0000

The bottom line is a home foreclosure means losing the roof over your head. It must be your prime concern. Home means many things, but one feeling we all have about our homes, humble or grand, is the notion of the cave; somewhere safe to scuttle back to, to re-group, to make our plans, the place we want to be when sad or frightened. Losing all this, at a time when you most need it, could be crushing. There’s help out there for you, but you must drive the campaign to save your home from foreclosure. However impossible it may appear right now, do not give up! There are steps you can take to halt the process even while you hold the foreclosure letter in your hand because the outcome is not inevitable. You are urged to carefully consider the consequences if you lose motivation and resign yourself to think “I cannot save my home from foreclosure”. You may not have yet considered the extra expense involved in losing your home. If you are lucky enough to find a rental agency that will accept you, you now have to fund removal costs, find a large deposit and pay some months in advance. There are good reasons why I mention ‘if you are lucky enough’. Your reference will show your involvement in the home foreclosure process, and that you are, therefore, probably not a good rent risk! In addition, finding a rental property that will accept children, let alone the slobbering, muddy family Labrador, is often very difficult and will incur additional deposits. And all the while, you will still have to make payments on your debt.

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Methods to Stop Foreclosure

RealEstateLawToday — Tue, 07 Sep 2010 01:50:51 +0000

Foreclosure is more of a menace that is what one thinks, it is a two street though. The borrower as well as the lender has a part to play in the entire process. Foreclosure notices get served due to unforeseen circumstances, I believe that the borrower will never mess around with payments that will give ultimate ownership of his own home. It is not always imperative that you engage the services of a lawyer as if you have the knowledge and strategies up your sleeve you will be able to stop this process. Here are a few proven methods that will help you retain your home and stop just that, something that you want with all your heart. If you want to obtain a grace period then what you will need to do is avoid receiving the dreaded notice. According to the rule the notice needs to be signed and received by the one who is living in the home only then is the notice operational. It is not critical to reply to the summons promptly take your own time. Exercise discernment to avoid being fooled as there are many scams floating around out there. Refrain from signing any kind of documents that will work to your disadvantage, people will tempt you by offering easy solutions, don’t get fooled. Follow legal procedures to be on the safe side.

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Foreclosure

RealEstateLawToday — Tue, 07 Sep 2010 01:50:32 +0000

No scenario is worse than a homeowner having to face the prospect of foreclosure. However, more than 50% of the American population have to face up to this fact, as an effect of the financial crisis during the past few years. Here, we will enumerate the many options that you have if your home is set to be foreclosed, and how you can choose the best one from the lot. What Every Homeowner Facing Foreclosure Needs to Know about So what’s a recession-affected, foreclosure-facing individual to do? The good news is that there are plenty of options that you can consider if you are a homeowner facing foreclosure. Remember that not all of these solutions are applicable to your particular situation. You need to consider your finances, your future plans and your current needs as a family when deciding which of the following routes to take. First, you can go for a loan modification option. This is a viable financial option if the bank agrees to change the terms of your existing home loan – allowing you to get an ‘extension period’ to stay in your home. When opting for loan modification, make sure to seek the help of a financial expert who can negotiate with the bank so that you can get a deal that works most to your advantage. Second, you can opt to have a forensic loan audit. Here, an expert will review your existing loan documents to determine if any violations were committed. Depending on the results, the auditor can use the information that they will get out of the assessment when negotiation with the bank on your behalf. Third, you can choose to have a short payoff refinancing plan. This is usually handled by mortgage brokers who will determine if you are qualified for such an option. When deciding whether to go for a refinancing plan, make sure that the solution offered by the mortgage broker will resolve your financial problems in the long term – and not just provide a band-aid solution which is merely temporary.

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Steps to a Short Sale

RealEstateLawToday — Tue, 07 Sep 2010 01:50:15 +0000

Steps to a Short Sale
-Be prepared for the process. Patience and diligence will be your allies and impatience can be your nemesis. Understanding the process will help you through it. The lender will not be rushed. Your experienced buyer’s agent will know how to manage the offer and the correct parties to work through.
-If you are not submitting a cash offer, ask your real estate agent about financing options. The lender may be in a position to permit a loan assumption and modification for a qualified new purchaser, or they may be able to offer new mortgage financing. The more steps that you have completed when you submit an offer, the better chance you will have of a quicker approval. Have your lender’s loan application, information and requirements prepared. The lender will provide you with a package with their forms and requirements. Rely on your buyer’s agent to assist you. There will be a substantial down payment required to have your Agreement approved. Other than for property inspections, there should be no contingencies in your offer. If you have to sell an existing home first, it is unlikely that a short sale will be approved by the lender. Line up your ducks. The more steps you have completed, the easier the process and the approval. Quick and clean will get you to your closing. You would be surprised at how many things don’t end up in the right hands when they float in one at a time. The fewer times that the file has to be handled and the more complete the documentation from the beginning of the process, the better the result.
-The lender will most likely want the property sold “as is.” They will not be motivated to deal with complexities in the contract, particularly since they are selling at a distressed price. These require too many decision points and details that can hang up the approval. Buyer Beware: it is important to protect yourself. Have the property inspected. All the home’s key systems should be checked out. Structural, plumbing, electrical, heating and air conditioning, fire place, swimming pool and equipment, roof and mechanical should be checked. If you are buying “as is,” the risks assumed will be yours. If you have any concern, be sure that the home is checked for pest infestation, hazards such as, asbestos (if the home was built prior to ’85), lead paint (if built prior to ’78), and radon gas, particularly if it has a basement. If you have reason to believe that the area may be in a flood zone or known hazardous or toxic waste area, have it checked out. The title commitment will indicate if the property is in a flood zone. If you have concerns discuss them with your agent. A short sale is like any other real estate purchase, surprises after the closing are avoidable. Most of these items should be covered in the standard local board of realtor purchase offer Agreement. It they have to contend with a lot of complexity, they will probably just as soon that the property proceed to foreclosure where they have a process established.
-Make sure that a legitimate hardship exists on the part of the seller. Don’t waste your time with a seller that is testing the water. The lender won’t approve a short sale unless a legitimate financial hardship exists. To qualify, the seller must be behind in their mortgage payments and unable to make future ones. In other words, if the lender does not approve the short sale, they are foreclosure bound. The lender is doing whatever they can to recover as much of the outstanding loan balance as possible; however, they need approval from the investor that owns the loan and any inferior lien holders before they can proceed.

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Chapter 7 Bankruptcy

RealEstateLawToday — Tue, 07 Sep 2010 01:49:54 +0000

Debt is frustrating and difficult. The creditor harassment is constant, and you cannot stop worrying about what will happen next. One solution is to file bankruptcy. Chapter 7 bankruptcy is the form of bankruptcy that most people use. Many people have questions about chapter 7 and what it will mean for them. This is an overview of the chapter 7 process and how it unfolds for most people. Most people file a chapter 7 because it is the fastest and easiest way to get out of debt, as well as the least expensive. Chapter 7 is ideally suited for someone who has credit card debt, medical bills, deficiency judgments, garnishments, or who wants to dispose of a house or car. If you were to try to resolve your debts on your own or pay them back, it could take years and cost you thousands of dollars. A chapter 7 bankruptcy usually costs less than $2,000 and takes about three months. Of course, during those three months you are not making any payments, you are protected by the automatic stay, and your lawyer is handling the work in your case. As soon as your bankruptcy lawyer files your chapter 7 petition, you get the automatic stay. The automatic stay requires that all of your creditors stop calling you stop harassing you and stop trying to collect a debt from you. As soon as you file bankruptcy, any garnishments against you will stop immediately. You will not lose all of your property in a chapter 7. This is a very common concern, but you should not worry about it. This is because the bankruptcy code is set up to protect your property and to give you a fresh start. In the unlikely event some of your property is subject to turnover, I can either structure your chapter 7 to protect that property or we can discuss putting you into a chapter 13. You will not lose your house or your car in bankruptcy, if you can afford to keep making the payments. If you cannot afford to keep making the payments and you want to get rid of the house or car, then you can use chapter 7 to get rid of that property and get rid of the debt. If you are behind on house payments are car payments then, depending on the size of the missed payments, you can either come to an agreement with a creditor or we can file a chapter 13. If you are making payments on something you want to keep it, then bankruptcy can help you do that.

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Bankruptcy Tips

RealEstateLawToday — Tue, 07 Sep 2010 01:41:43 +0000

If you are considering bankruptcy as the final solution to get rid of your financial problems, there are a number of bankruptcy tips that you need to remember. The first and the foremost thing that you need to know is that filing for bankruptcy should always be considered as the last option to get rid of your dues. There are a lot of handicap that comes along with bankruptcy. If you file for it, it will have an adverse effect on your credit report. It will lower your credit score which is not a very good thing to happen. The worst thing about it is that it will stay in your credit report for as long as ten years. This can cause a lot of problems for you in the future. It will be difficult for you to get a new job or a promotion in your career. Not only that, it will hamper your chances of getting loans in the near future. If you file for bankruptcy, it may create a lot of problems for your co-debtors. A co-debtor is a person who serves as a guarantor when you take loan ensuring that the money will be paid. Normally, family members, relatives or close friends go for such things. You will definitely not want to complicate their lives by passing the burden of dues to them. However, if you go for bankruptcy, they are sure to feel the heat. You may get relieved of the burden but they are the ones who will be victimized. However, you need not feel that this is the end of the road. There are a number of ways by which you can legally eliminate credit card debt and breathe easy. Among all, debt settlement is the easiest and the most convenient way of getting rid of your financial problems. A settlement program works by eliminating 60% of the total amount. It also relieves you from monthly payments of high interest rates. You also have the liberty of paying back the entire amount at a time or go for periodical installments.

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