Florida Foreclosure Defense Lawyers Blog

What do I do After a Florida Foreclosure Suit is Filed?

Sat, 04 Feb 2012 08:15:29 -0500

There is no doubt that foreclosure is stressful. As soon as you receive a foreclosure notice, you should contact a Jacksonville Foreclosure Defense Attorney to help you through the process and defend your rights. Remember, the bank cannot take your house until the court gives them the right to do so. This means the bank must prove to a judge they have the right to foreclose.

Once you meet with a Foreclosure Defense attorney, it is important to cooperate with the attorney in whatever ways you can. Respond to phone calls. Send requested documents. If you decide to abandon your home, you should discuss this with your attorney to understand the potential consequences of your actions.

Nevertheless, even with an attorney, foreclosure can be stressful. There is no guarantee that the bank will not foreclose on your home. This fact sometimes leaves people worrying if they will soon have to find a new home. Indeed, with the average foreclosure taking 806 days in Florida, this is an understandable feeling. Many homeowners have a hard time dealing with the stress. They may want to move out of their home and start over.

But where do you go and what will be the consequences of abandoning your home? A Jacksonville Foreclosure Defense Attorney can aid you in devising a strategy that can allow you to begin saving money and planning for your future.

More Trouble for OJ Simpson: Foreclosure

Fri, 03 Feb 2012 08:15:09 -0500

Florida is one of the few states that essentially allows a person to keep a home when declaring bankruptcy. This may have been one of the reasons OJ Simpson decided to move to Florida with all of his legal troubles and why there were caps placed on the amount of equity that can be protected in a bankruptcy. Having a home in Florida could provide more security than in other states. As a result of a lawsuit with the Goldman family, Mr. Simpson still owes over $30 million to the estate of Ron Goldman.

OJ Simpson is facing foreclosure on his 4,000-square-foot home in Kendall, Florida. Mr. Simpson is currently serving a prison sentence for up to 33 years for an armed robbery and kidnapping conviction in Nevada in 2007. His mortgage servicer, JP Morgan Chase, is claiming he has not made a mortgage payment since 2010. Though the home is worth just a shade under $500K, Mr. Simpson owes over $700K including penalties and fees. He paid nearly $600K for the home in 2000.

It is likely Mr. Simpson has an attorney to help him with his foreclosure. It would be difficult for anyone to challenge the banks in a foreclosure case, but even more difficult for Mr. Simpson considering he is currently behind bars. Hiring an attorney is a wise decision whenever someone is facing legal trouble. If you are currently facing foreclosure, contact a Jacksonville Foreclosure Defense Attorney today.

What does "Successor in Interest" mean in my Foreclosure?

Thu, 02 Feb 2012 08:15:05 -0500

If you are currently facing a foreclosure, you may notice that a different company than you obtained your mortgage from is bringing the foreclosure action against you. This is not unheard of, and, in fact, is common. If you do not recognize the company that has filed your foreclosure, it may be because the company from whom you obtained your mortgage sold its rights, merged with, or was acquired by another bank.

For example, if you originally secured a mortgage through Countrywide, you may now know that Countrywide is no longer inexistence and are wondering what affect this has on your Countrywide mortgage. Bank of America acquired Countrywide and now has all the rights of Countrywide to your mortgage. An interesting chart of the bank mergers that have occurred over the past few decades can be found herein the New York Times.

It is important to pay attention to the transfer of your mortgage because it may have been transferred incorrectly. We are still waiting to see the effects of robo-signing and other methods of potential fraud used in the foreclosures. Nevertheless, the burden lies with your current foreclosure company to prove they have the right to foreclose. If they cannot prove they have the right, you may have a good argument against foreclosure.

Of course, with the average length of foreclosures hovering over 800 days in Jacksonville, Florida, battling the banks and foreclosure firms is a tricky process. Don't face them alone. Contact a Jacksonville Foreclosure Defense Attorney to discuss your options and which make sense given your personal circumstances and goals.

Number of Foreclosures fell in 2011

Wed, 01 Feb 2012 08:15:18 -0500

2011 saw a bittersweet decline in foreclosures filings throughout the U.S. and especially in Jacksonville and the surrounding area. Although it may look like good news for the economy at first glance, in reality, it may just have had litte or no effect on home prices . We believe that one of the primary reasons for the decline in foreclosure filings was the effect of the discovery of the robo-signing that was used by many banks . New filings proceeded at a slower pace once courts and parties became aware of the increased level of scrutiny by the courts in order to obtain a foreclosure judgment.

While the level of foreclosures in Jacksonville fell, the length of time it takes to secure a foreclosure judgment rose. The national average in 2010 was 305 days, which increased to 348 days in 2011. The average wait time in Florida is much higher with an average of 806 days, which is over 2 years!

The wait time can be incredibly unnerving to homeowners as they worry each day if today will be their last day in their home. For some, the stress is simply too much to handle and they simply choose to abandon their home. You do not have to take on a foreclosure alone, contact a Jacksonville Foreclosure Defense Attorney who can help you understand the process and your options. Abandoning your home can be even more problematic as abandoned homes are often a target for thieves.

Because of the fraud that has plagued the foreclosure process throughout the U.S., the federal government stepped in to work out a deal with many banks that may help homeowners. The terms are still unclear, but it should not be too much longer before a solution is reached. If you are facing foreclosure or simply have questions about the options available to you on an underwater home, contact a Jacksonville Foreclosure Defense Attorney to discuss your situation.

Federal Government on Brink of "Robo-Signing" Settlement with Banks

Tue, 31 Jan 2012 09:13:33 -0500

Robo-signing, the practice used by many mortgage companies and their attorneys' to falsely sign numerous mortgage documents, may lead to some relief for under-water homeowners in the near future. In Jacksonville, Florida, the discovery of robo-signing caused foreclosure filings and proceedings to come to a sudden halt as attorney's worked to get all necessary documents in order before moving forward. Depending on the settlement, this could provide some very welcomed relief to many potentially facing foreclosure, but do not not expect it to be a substantial sum of money to any individual homeowner.

After the robo-signing scandal came to light, the federal government began an investigation into the alleged fraud and settlement talks with the banks who were allegedly involved. Apparently, the Government is finally about to reach a settlement that may help nearly one million families around the country by reducing principal balances on home loans. Many economists have said reducing the principal balances is the necessary step in addressing the current housing crises, which is currently very rarely done.

Among the banks involved in the negotiations are Ally Financial, Bank of America, Citigroup, JP Morgan Chase, and Wells Fargo. Other banks have been invited to the discussions, including PNC Financial, SunTrust Banks, and HSBC; however, their participation is uncertain as of now. Currently, the deal consists of a $19 billion settlement, which may change if more banks and more states become involved. The Federal Government has been urging all fifty states to join the settlement, but some states are continuing to decline.

Hopefully, the settlement will help save homeowners who are on the brink of foreclosure. It will be interesting to see if a deal is actually imminent and how far it actually goes. No matter what the outcome of the settlement, foreclosures will continue to happen and you always have the option of contacting a Jacksonville Foreclosure Defense Attorney for assistance.

Will I have to pay the Bank's Legal Fees if they Foreclose on my Jacksonville House?

Mon, 30 Jan 2012 08:15:24 -0500

Probably. U.S. courts follow the "American Rule" regarding attorney's fees; i.e. each side customarily pays their own attorney's fees. However, this can be altered, and is often done so through various legislative statutes or even by contract. Florida recently passed a law requiring homeowners who do not contest a foreclosure action to pay the mortgage company's attorney fees. In addition, your note and mortgage most likely contain language making you responsible for the legal fees associated with collection of past due amounts.

Florida Statute 702.065 allows banks to recover attorney's fees in certain foreclosure actions. It applies only when the note or mortgage contains a provision that entitles the bank to "reasonable attorney's fees" when the Borrower defaults on their payments and a default judgment is entered. If this is the case, the bank or mortgage company can receive up to 3 percent of the principal amount owed at the time the bank filed their foreclosure complaint without a hearing.

This might not sound like a big deal, but this new rule is actually quite different from the old law. Lawyers for banks used to be required to have a hearing with the court to ensure their fees were "reasonable." Now, however, a bank's attorney can receive $30,000 on a million-dollar home simply for obtaining a default judgment, without proving to the court that the attorney actually performed $30,000 worth of work.

Laws like these suggest the banks are trying to make their proceedings a little more efficient, which can only makes sense in light of the substantial backlog foreclosure cases have caused in Florida. Having a Jacksonville Foreclosure Attorney on your side, can help prevent the bank from obtaining such a default judgment against you. Don't face foreclosure alone. Contact a Jacksonville Foreclosure Defense Attorney.

Jacksonville and Florida Homeowners may have more Protection Under Recent Ruling

Fri, 27 Jan 2012 09:44:01 -0500

It is no secret that foreclosure companies were using a wide array of fraudulent tactics at the height of the foreclosure crises. Practices like backdating documents and robo-signing were wide-spread, despite being illegal. Nevertheless, many foreclosures were approved even though the mortgage company had faulty documents. This was largely due to the fact that, often times, the mortgage company did not have any other document to show the court, so they resorted to shady tactics.

Those tactics are becoming more difficult to use. A recent decision held that a bank or mortgage company must show proof of ownership before the court will grant a foreclosure. This means the note must be correctly dated and endorsed before the foreclosure is filed, which does not always happen. In such cases, the court might dismiss the case and force the bank to re-file with the appropriate documents.

This is an important development. It is unclear how persuasive this case will be throughout the rest of Florida, but it could significantly delay the already backlogged foreclosures throughout the state. It could also allow homeowners a new defense against banks and other foreclosure companies that fail to adequately prove ownership of the home itself.

If you are facing foreclosure in Florida, you have numerous rights and do not need to simply vacate your home without a court order. Contact a Jacksonville Foreclosure Defense Attorney to discuss your options.

Should I be Careful when Hiring Someone to Assist me with my Foreclosure?

Thu, 26 Jan 2012 08:15:40 -0500

Remember, there are almost always several options available to you to help defend against a foreclosure. One of the best options is to contact a Jacksonville Foreclosure Attorney who can help you through the process.

However, you must be cautious. There are people out there who are trying to exploit the current economy, swindling people out of their hard-earned money. In Southern California, for example, a man recently plead guilty to bankruptcy fraud and identity theft after years of "helping" people stall a foreclosure.

The man, Frederic Gladle, operated a foreclosure company and told homeowners he would postpone their foreclosure for a monthly fee. It is evident Gladle knew what he was doing was wrong, as he used numerous aliases in his business. He would have the homeowners who hired him sell a very small fraction of their home to a debtor who was going through bankruptcy. Having the homeowner's name attached to the bankruptcy placed an automatic stay on the foreclosure, meaning the lenders were prohibited from foreclosing until receiving permission from the court.

Using this scheme netted nearly $1.6 million for Mr. Gladle over a 4-year period. Almost all of this money was from homeowners struggling to remain in their homes. Mr. Gladle's actions are abhorrent and it is unfortunate that he was able to swindle even one dollar from anyone. If you are facing foreclosure, do your homework before rushing to make decisions and call a Jacksonville Foreclosure Attorney for help.

8-Year-Old Typo Results in Foreclosure Suit

Wed, 25 Jan 2012 08:15:27 -0500

Eight years ago, the Borchers paid their mortgage in full when they sold their house. They hired a title company to take care of the title transaction and moved on with their lives. Now, however, a completely different lender is suing them - along with everyone who has owned the house in the last eight years -- because of a typo on that old sale.

The typo describes the home as "Bloomingdale Section H" instead of "Bloomingdale Section R," a description for a house down the road. There have been three sales since the Borchers sold the home, and nobody caught the mistake until now. Because of that old mistake, the current owners are at risk of defaulting. Bank of America has filed suit against everyone, alleging it is up to the Borchers to resolve the problem. The Borchers are arguing that they are not responsible for the mistake and should not be responsible for correcting it.

Usually, the Borchers could go to the title company they used when they sold the home and who made the mistake, and have them fix the error. The problem here is that the title company no longer exists. This leaves the Borchers with little recourse and it will probably be up to the court to decide how to handle the situation.

Typos are rare occurrences, but they do happen. They are just one of the many ways a faulty foreclosure can be filed against you. If you are facing a foreclosure, contact a Jacksonville Foreclosure Defense Attorney and see how an attorney can help you.

I just Received a Foreclosure Notice from a Florida Court. What do I do?

Tue, 24 Jan 2012 08:15:24 -0500

Calling a Jacksonville Foreclosure Attorney to guide you through the steps is a good first start. But, there are a few other things you should know.

You do not need to immediately move out of your house. Actually, doing so may cause the bank or mortgage company to consider your home "abandoned," making it more difficult for you to obtain assistance. Instead, you can remain in your home until the bank obtains a foreclosure judgment against you.

You should pay attention to the letters the mortgage company sends you. You should not ignore these, and they will likely be useful when you contact a Jacksonville Foreclosure Attorney.

If you speak with the mortgage company about your situation, be honest. If you are not comfortable speaking with the mortgage company, your Jacksonville Foreclosure Defense Attorney can do that for you.

These are just a few simple guidelines to follow if you are facing foreclosure. Contact a Jacksonville Foreclosure Defense Attorney to discuss the details of your foreclosure. Each situation is different, but a qualified attorney may be able to help.

What Options are Available if I am Facing Foreclosure in Jacksonville?

Mon, 23 Jan 2012 08:21:31 -0500

If you live in Jacksonville and are under water on your mortgage -- i.e., your home is worth less than you owe on your mortgage -- you may be considering the option of stopping payments and allowing the bank to foreclose on your home (often called a strategic default). But not everyone wants a foreclosure; homes are a lifelong investment and often are attached to great memories and heavy sentiment. If you are behind on your payments, you have several options, all of which a qualified Jacksonville Foreclosure Attorney may be able to help you determine your options. Your options may include

Reinstatement. This means paying back everything you owe to the bank in order to become "current" on your payment. Unless you come into a large amount of cash relatively quickly, this option is likely not available to most people.

Workout. Some banks and mortgage companies know that foreclosing on a home means another empty house on their books. That is why they may be willing to negotiate a lower payment. There are several types of workouts: forbearance, loan modification, and partial claims.

Refinance.

Sell the home. Some buyers may wish to purchase a home as a short sale, and your mortgage company may be willing to accept the final funds from the sale in order to satisfy the mortgage.

Deed-in-lieu of foreclosure. This is where you give your home back to the mortgage company and simply walk away.

Bankruptcy. While this is not your first option, it can allow you to remain in your home in certain situations. Contact a Jacksonville Bankruptcy Attorney or Jacksonville Foreclosure Attorney to discuss how this option can benefit you.

Each option has its own benefits and disadvantages. One may be more beneficial to some people than others. Contact a Jacksonville Foreclosure Defense Attorney to talk about the options available to you.

Florida State Attorney General Pam Bondi Cleared of Wrongdoing

Sun, 22 Jan 2012 08:17:48 -0500

A while back, we wrote about Florida Attorney General Pam Bondi, who was under fire for firing two attorneys who were leading foreclosure fraud investigations. Ms. Bondi was accused of firing the attorneys without proper cause. Ms. Bondi has now been cleared of any wrongdoing.

The investigation into the firings found that nobody in Ms. Bondi's office was guilty of wrongdoing; instead, the two foreclosure attorneys were fired for their misconduct in the office. One notable instance was a PowerPoint presentation the attorneys gave that contained false information regarding several cases. Later, one of the attorneys evidently emailed confidential information about pending cases to an outside source. The entire report can be found in the Miami Herald Blog.

The firing of the two attorneys may have slowed down some of the investigations into foreclosure fraud, but investigations remain ongoing. If you are facing foreclosure, contact a Jacksonville Foreclosure Attorney who can help you deal with the bank.

Is Donating My Home a Solution to my Florida Foreclosure?

Sat, 21 Jan 2012 08:12:23 -0500

One possible upside to the number of foreclosed homes across the country is the rising rate of donated homes to non-profit businesses. According to USA Today, Bank of America donated 150 homes in 2011 with plans to donate many more in 2012. Wells Fargo also donated about four times as many homes in 2011 as it had in the previous year. As for Habitat for Humanity, they nearly doubled the number of homes they rehabilitated.

And donations are not just for big banks. Donating might be an attractive option, especially for low-valued homes, as it allows the owner to be free of the mortgage debt and earn charitable tax breaks. The homes are not always re-sold to a new dweller; instead, they might be torn down or at least heavily modified. Note, however, that many charities turn down offers of donated homes, as the homes are often in prohibitively dangerous shape.

Donating a home is not an option for very many people, as many would rather remain in their homes even if facing foreclosure. The options available to you differ depending on your situation. Contact a Jacksonville Foreclosure Attorney to discuss what options you should consider.

Is Renting a Possible Solution to Foreclosure in Florida?

Fri, 20 Jan 2012 08:15:00 -0500

Ben Bernanke, the Federal Reserve Chairman, recently released an opinion outlining his support for a solution to the rising number of vacant foreclosure homes across the nation: converting them to rental units. This would be an interesting issue for Jacksonville Foreclosure Attorneys and their clients.

The trend is clear: the demand for home-ownership is very low, while demand for rental properties is on the rise. But transitioning foreclosed homes into rentals is difficult to do on a large scale. Small entrepreneurs typically may buy several foreclosure homes and rent them out. However, large-scale rental companies have refrained from purchasing foreclosed homes because the homes are often not adjacent to one another but spread throughout a city.

Financing is also a problem. While financing for multi-family rental units is available at a low rate, financing for single-family rentals is significantly higher. This means that those who have the money to purchase single-family homes as rentals do not have much of an incentive to do so. It makes more financial sense to develop multi-family units instead.

But large developers aren't the only ones who could benefit from renting out foreclosure homes. Some people facing foreclosure, or who are underwater on their mortgage, should consider a short sale -- selling their home to an investor who then rents the home. There are numerous options available to those facing foreclosure. If you are unsure of your options or would like to speak with someone who can help you, contact a Jacksonville Foreclosure Attorney.

Former Florida Foreclosure Lawyer sued for Fraud

Thu, 19 Jan 2012 08:15:01 -0500

You might recall the name David J. Stern, and I do not mean the NBA Commissioner. Mr. Stern was one of the nation's leading foreclosure attorneys (representing the banks) based here in Florida, before he shut down his foreclosure operations in March 2011 after facing heightened regulatory scrutiny for his practices. Mr. Stern and his law firm were being accused of fraudulently foreclosing on thousands of Florida homes.

Now, Stern's former company, DJSP Enterprises, is blaming him for a number of deceitful practices, including the now well known "cost cutting" measures referred to as robo-signing. Robo-signing came to light a few years ago and is the process where employees sign documents without reading them. Stern is also accused of allowing employees to submit false or backdated documents to courts. Both practices are illegal and led to a brief halt of foreclosure filings when first discovered.

DJSP Enterprises, which now owns much of Stern's former operations, is suing him for fraud and seeking damages. At its height in 2009, Stern's law firm handled twenty percent of all foreclosures in Florida. The firm is now under investigation as many of those foreclosures were the result of fraudulent documents.

Fraudulent documents are a huge problem and make foreclosing on a home very problematic for banks. It is difficult to know if a document is fraudulent, and a qualified Jacksonville Foreclosure Attorney can help you defend against a foreclosure. Even if there are no fraudulent documents involved in your case, you still have rights and should not face foreclosure without legal representation. Contact a Jacksonville Foreclosure Defense Attorney to review your options.