FORECLOSURE DEFENSE

According to data collected by real estate information company RealtyTrac, in the first quarter of 2008, foreclosures spiked 112%, with one in every 194 households in the US receiving a foreclosure filing. People fell for “minimum payment” schemes offered by mortgage companies.

The Need for Foreclosure Defense

Seeking legal advice for foreclosure defense is required for the following reasons:

• In Florida, you have only twenty calendar days to respond to a foreclosure complaint. If a homeowner does not reply to the foreclosure complaint till the date mentioned on the summon, the lender has the right to move the court for a default judgment. Once the clerk's office issues the default and the court confirms it, there is very little that the homeowner can do to get the default lifted. Thus, the longer one waits to decide, the more burdensome his or her property becomes. Interest payments rise continuously, property taxes increase and insurance to be paid mount. 

• When fighting against the lenders, consulting an attorney is important for discussing the legal options available. An attorney would review the pleadings to understand the intricacies of the foreclosure situation. A foreclosure defense attorney researches violations or discrepancies in the mortgage contract to defend you in the proceedings. Often, banks are ready to negotiate for an out-of-court settlement when a proper defense is formed.

• Many people, on being sued under foreclosure, move out of their house, unaware that saving a house without filing for bankruptcy is possible. It is important that you fight the case with the help of a foreclosure defense attorney. Homeowners can raise defenses such as usury, fraud, invalidity of the mortgage, tender of payments due and the Truth-In-Lending Act violation. Trying out options, such as selling the property, requires time. Hence, defending the foreclosure can be one way in which you can buy time.

Benefits of Foreclosure Defense

Consulting a foreclosure defense attorney can help in various ways:

·         Inability to negotiate successfully with the mortgage lender can force you to let the foreclosure take place. This leaves a permanent mark on your credit score. A foreclosure defense attorney can speak with lenders to work out other possible payment arrangements. If that does not work, she can represent you in court, which may save your home.

·         There are many clauses in the foreclosure defense law that regulate the activities of lenders. Many lenders lend mortgage amounts that they are certain the borrower will not be able to repay. Foreclosure defense can protect you from these lenders and protect your home from being auctioned. We at JC Law can hellp homeowners in getting a second opportunity to recover.

Foreclosure Defense: Alternatives Available

Foreclosure can be avoided if one is educated about the options mentioned below:

• Short sale: This means negotiations with lien holders for a payoff for less than what is owed to them, or a sale of the debt on a property that is ‘short’ of the full debt amount. A short sale does not settle the remaining balance unless that is clearly indicated in the offer. Both the lender and borrower must agree upon the payment for the remaining balance.

• Loan modifications: This option does not require the homeowner to sell the home. The bank makes loan repayment affordable by changing the interest rate, terms of the loan or balance to be paid. Payment default fees can be forgiven. This helps homeowners make the current mortgage payment.

·   Deed in lieu: The homeowner’s lawyer negotiated with the lender. This is

    followed by a homeowner signing over the deed of the house to the bank.

    In return, the bank cancels the mortgage.

·    Filing bankruptcy: This stops all the proceedings of foreclosure and gives

    you a chance to retain your property by repaying part of the debt.

• Refinancing: The homeowner can replace the current mortgage with a new contract. The new arrangement has lower rates of interest and more favourable terms.

·    Reverse mortgage: Homeowners can take a loan against their property and

    do not need to pay it back till they live there. However, this alternative is

    available to property owners above the age of 62 years.

Foreclosure Defense Laws to Your Rescue

Foreclosure defense exploit loopholes in your opponent’s case to your advantage. Banks make mistakes with laws, often deliberately manipulating them.

• Truth in Lending Act (TILA): Almost 90% of foreclosure victims are not even aware that they have been victimized. Enacted in 1968 by the US Congress as a part of the Consumer Protection Act, the federal Truth in Lending Act protects consumers by making it compulsory for lenders to provide a lucid disclosure of terms of the credit arrangement and associated costs. If the disclosure is found to be inaccurate, the loan can be declared statutorily void under TILA. The lender has to refund all the money paid to them. Also, one is entitled to damages for offsetting the foreclosure. Among the most abused legislations, this can be the main foreclosure defense of homeowners against lenders.

• Challenging Ownership of Note: In a court of law, one has to provide evidence to back the Complaint. However, the defendant has to challenge the plaintiff to do so. Else, the court accepts the latter's claims on the basis that they were not contradicted. By demanding the claimant to "produce the note," you challenge the lender’s claim that it owns a note (mortgage) on your property, which gives it the right to foreclose it. This foreclosure defense tactic can best be employed during the discovery stage of the litigation.

• Home Ownership and Equity Protection Act (HOEPA): This powerful federal law governs high-cost refinance loans. Violations can lead to rescission of the loan and entitlement of damages in excess of the loan amount.

Also, there are other acts, such as Racketeering and Corrupt Organizations Act (RICO) and Equal Credit Opportunity Act (ECOA), that can be utilized to retain your home.

JC Law, based in Miami Lakes, has a team of qualified and experienced foreclosure defense team who are capable of handling foreclosure defense across Miami-Dade, Broward, and Lee counties. We act immediately after studying your case and take the required legal steps to keep your home safe. Also, we provide emotional support to you in times of financial trouble and partner with you throughout the process.