Foreclosure Lawyer Clearwater

What can I do to stop foreclosure?

As we explained above the law requires that a Defendant defend a complaint for foreclosure by “responding” within twenty (20) calendar days. It is important to note that it is calendar days (not workdays). Many fail to respond under the presumption that the result is inevitable, or that a defense would be “too expensive”. Another common mistake is to assume that telephonic communications with representatives of the opposing party are sufficient. It is not, as explained in your summons. Please read the summons served upon you. The legal “response” to the court is technical in nature, generally called a pleading, and must be in writing.

We can help you through this process in an affordable way. Please call us so we can review our fees and how our defense may be your “cheapest” option available to you.

Failure to respond (or answer) will result in a Default Final Judgment against you, without further notice. By law, the corresponding sale date would be set as soon as a minimum of three (3) weeks after entry of judgment. If the response is properly filed, you as a borrower, would achieve additional time within which to attempt to resolve your matter, and/or simply allow you the luxury of time to plan your next move. We have handled these types of matters for our clients for nearly twenty (20) years.

What are my options?

With a defense you may protect your property for some time while you look for solutions. Many people are unaware of the fact that while you are defending your foreclosure lawsuit you preserve all of your of “ownership”. In other words, as owner while defending your foreclosure you can still reside at the property, rent it ( and collect rents), or attempt resolution with the lender (such as short sales, modifications, etc.). In addittion to your legal defense we can assist you with these efforts as well. Our firm is also experienced in the handling of any bankruptcy matters should that be necessary to protect you.

The banks have their attorneys, you should too.–However, without a defense of the lawsuit your efforts to seek out solutions will be impeded by the lack of the “luxury” of available time. Banks will typically take anywhere from several weeks to several months to make their decisions in efforts to resolve these cases. The foreclosure process could take less time.

Unless the bank gives you written confirmation that they are putting the legal process on hold while they are “talking” to you they are typically moving the foreclosure case forward. Therefore your legal defense is important to protect your ownership interest while you work on a solution. Remember once the property goes to a foreclosure sale the property is no longer yours. So your efforts would have been wasted if you run out of time. Our lawyers will assist you in assuring such time.

The Current Crisis

With unemployment figures reaching a 25-year high, the declining economy continues to impact hundreds of thousands of families each month, struggling with their mortgage. According to RealtyTrac, 303,410 foreclosure notices were served on properties in the month of December alone. This followed the 2,854,396 foreclosure filings throughout all of 2008.

As stated above, options do exist that can prevent the trauma of losing their home or facing long-term financial loss.

Short Sales

Short sales are an alternative to foreclosure for struggling homeowners who do not want to stay in their homes but would also like to lessen the potential financial damage that a foreclosure could cause on their credit rating. If you or someone you know are looking for a “short” way out of a mortgage, keep reading and find out if a short sale is a feasible option. A short sale is an agreement from the lender(s) to allow the homeowner to sell the property for less than what is owed on the mortgage(s). An example would be an agreement to allow a sale of the home to take place for $175,000 when $300,000 is actually owed on the property.

It’s important to understand that you’re not alone, and that just because you’re struggling now doesn’t mean you won’t be able to recover in the near future. Before choosing to attempt a short sale, it’s important to ask yourself if staying in your home is an option you’d like to explore, because there are opportunities, including a loan modification that may be a better path for some struggling homeowners to pursue.

Loan Modification

A loan modification would allow the homeowner, to renegotiate the terms of their existing mortgage(s) to a more affordable monthly payment(s). This can be accomplished in a number of ways that bring about both temporary and permanent solutions but ultimately allow the homeowner to keep their home.

If you think that a change in your mortgage terms, like a lower rate or lower monthly payments, might help you make it through this rough patch, it’s important to communicate with your lender, even if you’re several months behind in your payments. Many lenders have reported that in many cases where a homeowner is delinquent on his or her mortgage, they have been unable to reach the owner to discuss any options. Picking up the phone and placing a call is always in your best interest. We can assist you in this stage. We are currently handling many of these matters for clients with similar issues.

For a lender to consider a short sale, there are a number of factors that the lender will take into consideration before an approval can be secured, including:

Current hardship, which can include a change of income due to job loss, loss of hours or salary reduction, illness, death of a wage earner, or a change in marital status.
The property is “upside down,” which means the house is worthless in today’s market than what is owed.
(It’s important to note that, unlike a loan modification, a homeowner does not have to be delinquent to be considered for a short sale. However, a hardship should be demonstrated showing that the homeowner would not be able to remain current on the mortgage in the future due to mounting financial obligations.)

Why would a lender agree to sell your home at a loss?

Well, in many cases, the foreclosure process results in a losses for the lender. On a short sale or loan modification, however, these losses can be reduced, in many cases. (For example, a foreclosure on a $300,000 home could cost the lender up to $120,000 or more in losses, where they might only lose $60,000 by working with the borrower). Add to that the record losses incurred on other foreclosures, and it’s clear why lenders, in many cases, prefer to negotiate a solution.