Florida Law Attorney

Stop Foreclosures

RealEstateLawToday — Fri, 03 Feb 2012 18:14:07 +0000

There are all kinds of reasons why people run into bankruptcy and foreclosure problems and there is no way for us to know why one house forecloses when another doesn’t. We can’t judge a homeowner when they have to foreclose because we have no idea what the reason is that they have for running into this kind of financial trouble.Many people have so many burdens they carry which go unseen to many friends and neighbors. It is pretty natural to assume however that the kind of economic downward plunge we have witnessed has had something to do with the foreclosure.There are many things that we can do in order to try to prevent a foreclosure. If you find yourself in a situation similar to this, one thing that you can do is enlist the help of seasoned professionals. These people are highly trained and have experience in situations similar to yours. It just seems to make the best sense that you would ask their advice on things that can help improve your situation and try to keep you in your home.

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Types of Government Foreclosure

RealEstateLawToday — Fri, 03 Feb 2012 18:13:29 +0000

Many experienced and expert real estate investors find a government foreclosure home a good thing to invest in. However, prior to getting such property, you should be able to discern the different types of such government properties. These include judicial foreclosure and non-judicial foreclosure. Judicial foreclosure involves a lawsuit as well as an appointed court officer who is authorized to trade off a property after a long period. This foreclosure includes a protection in terms of the value of the property, which is higher as compared to the amount owed by the borrower. On the other hand, non-judicial foreclosure does not involve lawsuits. However, the borrower will receive a notice of what will transpire on the property after failing to pay off the mortgage. You can purchase various types of foreclosure properties from the government including repossessed homes, VA foreclosures, HUD homes, foreclosure homes, and properties owned by banks.

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Process of Judicial Foreclosure

RealEstateLawToday — Fri, 03 Feb 2012 18:12:29 +0000

There are two types of foreclosures – judicial and non-judicial. It depends on the laws of the state in which the property is located. The foreclosure is a process by which the lender realizes unpaid dues from the borrower. The property that has been kept mortgaged is foreclosed upon. The judicial foreclosure starts with the lender filing a complaint with the court seeking permission to go ahead. A notice of Lis Pendens is noted with the court. Lis Pendens is a public notification stating that the property under dispute is under litigation and thus it would not be safe to purchase such a unit until the court has resolved the matter. After the complaint has been filed in court by the lender, the borrower or respondent will be served with a notice of the said complaint. It may be either directly served or through mail. If the borrower cannot be traced then the notice is made public. The serving of the notice is pivotal to the running of the foreclosure process since on its receipt depends the issue of the borrower carrying on with his or her legal defense. A date is set for hearing in the court. At the hearing both the plaintiff and defendant get a chance to present their stand on the matter. If the court finds the lender is right then it allows an auction of the property to be held to realize the dues together with relevant fees and penalties. Judicial foreclosure is the norm in many sates. It takes time in comparison to non-judicial foreclosure process. In some states there are special laws wherein the borrower has to prove that the loan is not defaulting. But in other states the process of judicial foreclosure is the same as other lawsuits.

In judicial foreclosure the borrower often has the right to cure the fault or “redeem” the property. There are certain deadlines during which time the borrower is allowed to become current on the loan. If the deadline is missed then the judge orders the property to be auctioned off. By the process of judicial foreclosure the lender take over the title of the property and also get a judgment against the borrower for any pending amounts that may be due even after the auction sale. With prices being at an all time low, the sale proceeds of the house does not often cover the full amount of the loan.

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Loan Modification Hardship Letter

RealEstateLawToday — Thu, 02 Feb 2012 18:13:48 +0000

When you are up against the wall with your home mortgage, a loan modification can be what allows you to stay in your home. A lot is riding on the loan modification hardship letter you must write as part of your application package. This is the main tool you have to present your case to your lender, showing them why you are deserving of a chance to rework your mortgage. Here are some tips to help you as you prepare this important piece of your presentation. The first issue you must be conscious of is the length of the letter. The first instinct might be to go into great detail about the situations that have happened to you to cause your financial problems. You may feel you are helping yourself by a wordy, emotion-filled explanation. The opposite is true. Your document is landing on the desk of a very busy and overworked loss mitigation representative; they do not have the time to read a long diatribe. This document should only be 1 to 1 1/2 pages long at the most.

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Why a Bankruptcy Lawyer is Needed

RealEstateLawToday — Thu, 02 Feb 2012 18:13:04 +0000

So you have finally made a decision regarding your financial affairs, and you believe that bankruptcy is a necessary step for your future. Do you really need a bankruptcy lawyer to help you figure things out? Yes, now more than ever, a bankruptcy lawyer is a must if you plan on filing Chapter 7 or Chapter 13 in the near future. First of all, this professional assistance can help you decide whether bankruptcy is in your best interest to begin with. An honest and capable lawyer can examine your situation and answer specific questions that you may have regarding your own circumstances. After all, every person is different, and you need to have a lawyer who cares specifically about your own set of circumstances. Once you have made a decision that bankruptcy is right for you, you still need a professional to help you along the way. You should not count on a paralegal or on a document preparation service at a time like this. Why is a bankruptcy lawyer so crucial nowadays? Because Congress remade the bankruptcy code into something much more complex. Some bankruptcy attorneys refer to it as barf (the bankruptcy abuse reform fiasco). According to some experts, the law is such a mess that many lawyers and judges are still having trouble trying to figure out exactly what Congress meant when it passed a law. (This should come as no surprise, because Congress itself often doesn’t know what it’s doing. I imagine most of the members of Congress don’t even read the bills that they’re passing.) You may have a buddy who tells you that declaring bankruptcy by yourself is a piece of cake. Chances are, however, that your friend declared bankruptcy before the recent changes in statutes. Take a prudent approach and get help from a professional who can help you navigate the maze known as the bankruptcy law. Meanwhile, continue to learn as much as possible through more articles like these.

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Credit Card Debt Bankruptcy

RealEstateLawToday — Thu, 02 Feb 2012 18:11:55 +0000

Credit card debt bankruptcy is not a simple problem. Card holders need to adopt a step wise approach to get rid of this problem. The first step is to stop the usage of plastic money. Some people fail to understand this point and they continue using their cards. This is not the right approach. If you continue using plastic money for your purchases, the threat of credit card debt bankruptcy will increase. There is a simple reason behind this. The total payment which is made to the bank consists of the principal amount and interest charges. How does the interest amount vary with the usage of plastic money?
-Interest charges increase with the usage of credit cards
You are paying interest on every single dollar. Thus, the more you spend, the more interest will be paid. Look at your credit card statement and analyze the interest charges. If you stop using your card, the interest amount will automatically reach zero. If you are using cash, you will not have to worry about paying interest. Counselors follow a particular strategy to educate the loan takers. The most important point required to prevent credit card debt bankruptcy is to prevent the usage of plastic cards.

-How to prevent credit card debt bankruptcy with interest reduction?
Are you ignoring the amount of interest which you are paying every month? Do not focus on the principal amount only. Interest charges make a lot of difference. Even if you get fifty percent discount, you will be paying a much smaller amount. If truly know about the losses of bankruptcy, you will never consider it a way to get rid of unsecured liabilities. Those who declare themselves bankrupt to get rid of credit card complications do not consider the financial future. An important aspect of the financial future is the credit score.

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Foreclosure Notice

RealEstateLawToday — Wed, 01 Feb 2012 18:12:12 +0000

The foreclosure is a process by which the lender realizes unpaid dues from the borrower. When a loan is taken to purchase a house the latter is kept mortgaged as security to the lender until the loan is repaid. The borrowers make monthly payments to the lender that includes the rate of interest and partial repayment of the principal. When the borrower lags behind and fails to make the payments then the lender, before actually foreclosing sends a foreclosure notice or NOD (notice of default). Technically it is known as Notice of Assessment Lien Foreclosure Sale. The foreclosure notice addresses the borrower and states that the person is warned that since payments are due steps will be taken to realize it as per provisions of the laws of the state. Till the date of issuing of the foreclosure notice, a lien exists on the mortgaged property for unpaid assessments as well as charges incurred from a certain date till the date of the foreclosure notice. Till then no legal action has been taken to collect dues. With the start of these proceedings all previous action, if there had been any, is dismissed. In the foreclosure notice the lien holder claims that the lender has so far observed all the steps required but is now taking action to speed up realization of past dues. The amount due till then is stated. The names of all the parties are listed.

The lien holders or lender will now foreclose on the property that has been described in the foreclosure notice. The debt has to be paid. In addition all extra assessments till the date of the sale together with legal fees and other costs will have to be paid. The foreclosure notice also refers to the redemption period – this being dependent on the laws of the particular state in which the property is situated. During the redemption period the borrower is permitted to clear the pending dues and escape foreclosure. Generally the redemption period is six months. It is sometimes reduced to five weeks. The foreclosure process is as old as the time when man started to lend and borrow. But what is new is the staggering number and that most of them are from the sub-prime mortgages that had been contracted during the last couple of years. These were peddled to the underprivileged section of American society that did not understand what they were inking.

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Chapter 13 Priority Claims

RealEstateLawToday — Wed, 01 Feb 2012 18:10:41 +0000

The goal of Chapter 13 bankruptcy is to help you create a payment plan so that you can pay off part or all of your debt during the next three to five years. But how do you determine whether you have to pay a creditor in full instead of settling for pennies on the dollar during a Chapter 13 bankruptcy plan. Well, that largely depends on the kind of debt that we’re talking about. There are some kinds of financial obligations labeled as priority claims. These kinds of debts must be paid off completely during the repayment plan. Some types of priority claims include child support obligation and back taxes. If you have these kinds of financial concerns, then you will need to create a payment plan in which you pay off these priority claims completely. If you are not able to do so, you may not qualify for Chapter 13. What are some other eligibility requirements for Chapter 13? Well, for one thing, there is a maximum amount of debt. If you’re wondering about the difference between secured debts and unsecured debts, it’s actually pretty simple. A secured debt means that there is an asset that can be repossessed such as your car or your house. Unsecured debts, such as credit cards, are not backed up by any collateral. Your eligibility for this kind of bankruptcy and the exact terms that you are given also depend on your recent filing history. If you have filed with a bankruptcy court for any kind of relief during the last few years, this may change your situation considerably. If you were given a discharge recently, you’ll be treated differently. How so? Well, assuming you qualify for another discharge to begin with, you’ll probably have to pay off all of your debt to the creditors during a repayment plan instead of simply settling for a fraction of the cost.

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How Bankruptcy Helps Pay Off Debts

RealEstateLawToday — Wed, 01 Feb 2012 18:10:16 +0000

The thought of declaring bankruptcy often sends a chill down many people’s spines because of the negative consequences that can come when filing. However, sometimes declaring a Chapter 7 bankruptcy can be the smart thing to do. This is because the liquidation of your assets can help pay off debts that you would otherwise not have been able to handle. If you were behind on your mortgage payments for this investment property, the bank could foreclose on the property. Granted, this can take several months to accomplish, but eventually the mortgage company can take over house because you have not made payments. Chapter 7 bankruptcy will not save your house from the mortgage company, because you still have to continue to pay off your house payments on a monthly basis. (Chapter 13 can actually help you restructure your mortgage if you are behind on payments, but that is another matter for a different article.) What happens when they finally foreclose on the house? You could lose your entire investment and still not have covered your other debts. Bankruptcy can stop foreclosure before it happens and allow you to liquidate your assets. This can not only help you cover other debts including unsecured debts like credit card bills, but you could actually put money in your pocket depending on the amount of equity you had in the home versus the amount of debt you are trying to pay off.

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Loan Modification

RealEstateLawToday — Tue, 31 Jan 2012 18:09:33 +0000

Homeowners who are struggling to pay their mortgage and are considering applying for a loan modification to save their home from foreclosure should be aware that how you talk to your bank will make a huge difference in the final outcome of your application. Mortgage lenders do put a lot of emphasis on the interaction they have with their borrowers. Homeowners often end up thinking that simply sending all the required documents and submitting the application is all they can do. The fact is you need to do much more if you are serious about saving your home. You need to engage your mortgage lender in a way where they will not only know about your situation but also try to expedite your application approval sooner than the timeframe they give you. The first aspect of engaging your mortgage lender is writing a good hardship letter. You need to put in a fair amount of thought in writing this as it is the hardship letter which will inform your bank why they must consider you for a loan modification. It tells your bank about your financial situation and why it is getting tougher for you to meet your mortgage requirements. A good hardship letter can capture your bank’s attention and allow your application to progress further.

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