Video Summary

How can an attorney help me if I’m in danger of losing my property to foreclosure?  Well, the first thing that an attorney can do who does foreclosure defense is to explain to you the system or what’s going to happen. Information is power, and that way, you can then make some informed decisions as to what you want to do and how you wish to deal with it and what risk you have.  Many times, I listen and it bothers me when people say, “Well, I’m behind on my mortgage payments and I’m just gonna walk away from the property.”

Well, that’s probably the worst thing that anyone could do because then the property is subject to being vandalized and the value of the property goes down and nobody is a winner.  So I think it’s important to understand how long the process takes, as well as what the consequences are.  Also, people are concerned whether or not they’re going to have a judgment entered against them where the bank can take their assets or bank accounts and immediately want to start talking about bankruptcy.

Well, there is a lot of other options involved and some lawyers who do foreclosure defense can give you an idea of whether or not banks are even pursuing a money judgment against you.  Right now, foreclosures are taking probably nine months to a year.  So why would you want to move out and start paying rent if you could stay there, and if you’re not making your mortgage payments, maintain the property and then when it gets a little closer to being foreclosed out, you can – or having to move when the foreclosure process is over with go rent a piece of property. The rent’s right, just stay right there and then you can start building up a reserve in order to be able to afford another place to go.

So a lawyer primarily can give you your options and talk with you about what you want to accomplish, whether you want to stay in your home, whether you want to try and get a mortgage modification or whether you want to avoid a deficiency judgment.  All of these things are what a knowledge lawyer can help you with.  So if you have questions about a mortgage foreclosure or you’re in danger of your house being foreclosed upon, give me a call at 727-847-2288.

Thank you.

Video Summary

What do I need to know about loan modifications?  Well, you probably need to know a lot.  But the biggest thing you need to do is be very, very patient and very, very persistent because they are very, very hard to get.  So whenever you get the information from your lender—sometimes they mail it to you to say you can do this to avoid foreclosure, or you can go on their website and have the home retention department or a collector call—get in touch with them and ask them to send you what documents you need to send them in order to try and get a mortgage modification.  Whenever you complete the information and try to complete it as full as you can, completely as you can, it’s a real pain in the neck, but once you get it all completed and then you fax it to the lender, be sure you put your loan number on the bottom of every page that you fax to them because I haven’t ever been there, but rumor has it they have a common fax machine and they’ll forever tell you they didn’t get all the documentation.

So after you fax all your paperwork, count four days, and after four days, call them and say did you get everything or is there something that is missing.  Be proactive.  It takes time and persistence.  Now, once you’ve done that, you need to calendar out in about a month.  After about a month, you then need to send in new bank statements and paystubs, if you have them.  And you fax them to the same number.  Be sure you put your loan number on there, updated paystubs, updated bank statements.

Count four days, call them, ask them, “Did you receive everything?  Is there anything else you need?”  So be proactive.  Continue to do this.  Probably – hopefully after about six months—they will hopefully have someone actually look at your paperwork and you may have a shot of getting your mortgage modified.  But you have to be persistent.

Now, don’t get your expectations up a whole lot about getting a principal reduction on your mortgage.  You can ask for it. However, a lot depends on who owns your mortgage, whether it is owned by Fannie Mae and Freddie Mac or whether it’s owned by an investor, which is a trust.  And it’s been my experience that the only time you get a principal reduction is whenever your loan is owned by an investor.  Now, how they pick out who gets the principal reductions, I haven’t figured that out.  But you’re not gonna get it necessarily.

Your chances are increased I would think if you go ahead and apply for a mortgage modification.  So whenever you go about trying to get it, go ahead and start applying and keep applying, and if they turn you down, well, just turn around and apply again and pretty soon, you’ll be a master at sending the paperwork in and continue to be persistent.  And then once you get your modification, well, give us a call.  We’ll be glad to review it with you and then we can tell you whether it’s acceptable to you or not – acceptable to you or not acceptable, and then if they wind up filing a foreclosure action while you’re in the middle of this modification program, you have another bite at the apple, which you may be successful with is whenever a foreclosure action’s filed, to then also modify your mortgage.

Now, if you’re current with your mortgage and you want a modification, there are several programs out there for people who are current to be able to modify their mortgage to a lower interest rate, even if the value of your property is below what you owe on it, you still may be qualified and you need to contact your lender about those programs.  And you have to have made all your payments for the past 12 months and be current.  So if you have any questions about mortgage modifications, give me a call at (727) 847-2288.  Thank you.

In his continuing efforts to educate and serve the community, Chip Waller talks about real estate foreclosure and what your options are in this commercial.  If you have questions about a foreclosure or questions regarding your options with a mortgage that you are having financial difficulties paying, call our office and schedule an appointment to become better informed and make an educated decision.  We are here to help you!

Video Summary

Do I have a right to sell my property if it is in foreclosure?  You do have the right to sell your property whenever a foreclosure action is filed.  You can sell the property any time prior to it being sold in a foreclosure sale by the clerk’s office.  Presently, the foreclosure act is being concluded through a foreclosure sale online by the clerk.  So, just because you have received a foreclosure complaint does not mean that you cannot sell your property.

Many people do, and it’s usually a short sale, meaning that the lender accepts the net proceeds in full satisfaction under a mortgage, so you’re selling it for less than the amount owed.  So, don’t give up because you get served with a foreclosure complaint.  You’re still in a position to sell your property at any time.

So, if you have any questions about selling your property, give me a call at (727) 847-2288.

Video Summary

If I sell my house, do I have to pay the difference to my lender?  I’m going to give you a “lawyer answer” because it’s not always the same with every transaction.  It’s transaction and borrower-specific.  The usual case is that if you have a short sale, the lender usually forgives any difference between the amount that they receive from the sale of the property and what is owed.  And a lot depends also on whether it’s a first mortgage versus a second mortgage.  With second mortgage holders, some of them will not agree to forgive the difference and that can be treated a couple of ways.

Sometimes they require the borrower in the short sale to sign a promissory note for a certain amount of money.  It may not be for the full amount or they may negotiate a lump sum amount, which they will accept to forgive the difference.  With second mortgage lenders, a lot has to do with who the lender is.  There are certain banks that will not release you from liability and they will release the property from their lien; however, they will continue to hold you responsible for that amount.  Whether or not they sue you or bring a lawsuit for the difference, that remains to be seen.  Usually, if they do, the amount can be negotiated to a probably $0.10 to $0.20 on the dollar as to what you owe if you can work out a lump sum payment.

Also, you must remember that if they do forgive your loans, they can issue what they call a 1099-C, which is a report to the Internal Revenue Service that they forgiveness of debt is considered income.  If this is on your primary residence then you can probably avoid paying any taxes.  If you’re taking a loss on your rental property, then you can avoid having to pay taxes by filing the tax return and having a basis higher than what they amount that you sold the property for, so that you have a loss on the property that offsets the gain.  So whether or not they forgive the debt or not depends on your particular circumstances, particularly if you have the ability to pay. If you show a nice fat financial statement or good income, they’re more likely to order you to make a contribution at the closing as far as the unpaid balance.  So if you have any questions about that, you can give me a call at 847-2288.  Thank you.