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Miami Foreclosure Defense Exit Strategies

Jacobs Legal understands there are many dynamics still changing during this foreclosure crisis.

  • Banks are constantly revising policies and procedures.
  • The costs of litigating foreclosures is skyrocketing along with the number of defaulting loans
  • Well-defended foreclosures are severely clogging Florida courthouses
  • Banks have taken back thousands of properties that still haven’t hit the market with no end in sight
  • Several of the biggest “Foreclosure Mills” in Florida representing JP Morgan Chase, GMAC, Ally Bank, Bank of America and other lenders admitted submitting false affidavits in thousands of foreclosure cases
  • President Obama and his administration need to find solutions to help homeowners facing foreclosure and unemployment
  • Bankruptcy Reform could still threaten Banks who refuse to reduce principal owed or extend payment schedules

There will be no help for homeowners that lost their homes to foreclosure. While a borrower that does nothing should expect the worst case scenario, an effective foreclosure defense can create the best case scenario,

Here are just a few:

If you want to keep your property

  • Fight the Foreclosure
    • The Courts are overwhelmed with foreclosures
    • Many bank lawyers are underpaid and overworked
    • Many banks have lost important paperwork
    • You can continue to live in or rent the property without making payments to the bank
  • Loan Modification
  • Banks that fear a difficult foreclosure may agree to many changes to rewrite your loan, including:
    • Reducing the principal amount owed on the loan
    • Converting an ARM to a Fixed-rate mortgage
    • Steep Reductions in the interest rate
    • Extended payments schedules
    • Reduced monthly payments
  • Refinance
    • For every need, there is a market. Aggressive lenders and foreclosure relief laws could jumpstart funding to rescue people in foreclosure.
    • borrower must be able to make regular monthly payments
    • negotiate for reduction in principal amount owed
    • Borrower must not have lost home to foreclosure
    • New loan at affordable terms
  • Forbearance
    • Many lenders will agree to delay foreclosure proceedings
    • Some will agree to cancel sale dates
    • This allows you more time to decide on best exit strategy

If you don’t want to keep your property

If a borrower doesn’t pay their mortgage the Bank can:

  • issue negative credit reports,
  • take back the home, and
  • collect a deficiency judgment

A formidable foreclosure defense is powerful leverage for a borrower to negotiate from a position of strength. It may mean the difference in avoiding the full economic hardship of a foreclosure.

  • Short sale
    • A bank can agree to accept less than the total amount owed on the loan to release the mortgage
    • Borrower needs to find an investor or buyer willing to make reasonable offer to the bank
    • Depending on the lender some borrowers could have their debt forgiven if the short sale closes
    • Beware of Banks that demand a new promissory note or a deficiency judgment
    • YOU DO NOT HAVE TO CLOSE THE SHORTSALE IF THE BANK REFUSES TO WAIVE THE DEFICIENCY
    • You should expect banks will pursue deficiency judgments
  • Deed-In-Lieu
    • In a deed-in-lieu scenario, the bank avoids litigation and the borrower agrees to sign over title to the property.
    • Some Lenders will waive their right to a deficiency judgment
  • The Mortgage Forgiveness Debt Relief Act of 2007
    • established a three year window
    • debt relief not taxable under certain circumstances
    • Please consult your accountant or tax advisor for details

Available 24/7 Call Now. Call Jacobs Legal, PLLC for a consultation or send us an e-mail. We can evaluate your case today.

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