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Foreclosure Lawyers
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In 2010, the State of Florida had the second-highest foreclosure rate in the country at 485,286 foreclosed properties. Nationwide, more homeowners are losing their homes than at any other time in American history.
What is foreclosure? Foreclosure is a legal remedy where a lender can take land from a borrower who has defaulted on a loan secured by a mortgage. Foreclosure entails a process where the lender files a lawsuit against the borrower seeking a determination by a court that the loan is in default and that the property should be sold at public auction. As with any matter in litigation, foreclosure is a complex process governed by state law and rules of civil procedure. An experienced Florida foreclosure defense attorney will understand the complexities of the law and can help you through this tough financial time. At some point after the borrower defaults on the loan, the homeowner receives a knock at the door and legal documents, including a summons, a lis pendens, and a complaint (usually including a mortgage and a promissory note evidencing the original loan transaction).
If you find yourself behind on your mortgage and you receive that “knock on the door,” it is imperative that you consult a foreclosure defense attorney immediately. . Legal process is time sensitive. Unless you act quickly, your rights and your financial options can diminish. The experienced foreclosure defense lawyers at PERENICH The Law Firm can help protect your rights in a timely manner.
The last five years have seen tremendous changes in the economy. 2005 became the heyday of real estate activity and investment over-speculation. The summer of that year saw sales in the Tampa Bay area just hours after property was listed on the MLS. Sadly, those days are over. Property values in the Tampa Bay have seen unprecedented declines and the trend is continuing. An experienced Tampa Bay foreclosure defense attorney at PERENICH The Law Firm will understand your options are limited when foreclosure is imminent. A homeowner is only given a handful of options in a foreclosure situation:
Conventional Sale | Short Sale | Surrender | Reinstatement | Mortgage Modification | Bankruptcy
Conventional Sale. This option requires that the seller receive an offer from a buyer in an amount sufficient to enable the seller to pay off the mortgage plus any applicable closing costs. While this option ensures that the loan is repaid and that no further liability results to the seller, many homeowners may find this option distasteful because they are “giving up” the home. If you are considering a conventional sale, our Florida foreclosure attorneys can help guide you through the legal process quickly and easily.
Short Sale. This option also requires that a ready, willing and able purchaser make an offer to buy the home. Additionally, this option requires that the seller’s mortgage lender voluntarily accept a reduction in the amount it is otherwise entitled to collect. A seller has a legal obligation to deliver marketable title to a purchaser. Unless the mortgage holder is willing to sign a satisfaction (a legal document evidencing that the loan has been “satisfied”) while taking less than it is legally owed, the short sale will not occur. Despite record numbers of foreclosures, short sales are difficult and can take a very long time in situations where the seller has only one mortgage. Where there are two or more, short sales can be nearly impossible to achieve. Sellers should be cautioned against pursuing a “short sale” where the mortgage company insists that the seller/borrower sign a promissory note to cover a deficiency. Paying a mortgage can be difficult while owning a home. It can become even more onerous when paying a mortgage loan after having given up the property. If a short sale seems like the best option for you, the foreclosure lawyers at PERENICH The Law Firm are here to help.
Surrender. This option is usually the least desirable for a seller, not just because he or she loses the home, but also because the financial ramifications of simply “walking away” can be disastrous and long term. After the foreclosure sale, the mortgage company may pursue a deficiency claim against the former homeowner. The deficiency would be the amount of the mortgage holder’s financial loss determined after the foreclosure sale. A judgment in Florida can last for twenty years. If you are considering the surrender of your property or home, a Tampa Bay foreclosure attorney at PERENICH The Law Firm can help guide you through the complex legal processes.
Reinstatement. This option is typically both the most desirable and most difficult to achieve for a homeowner. It requires the homeowner to “catch up” the loan in a single lump sum payment before the foreclosure sale occurs. A reinstatement payment necessarily includes attorney fees and costs incurred by the mortgage holder in prosecuting the foreclosure case. These fees and costs can translate into thousands of dollars depending upon how late in the process the homeowner accomplishes the reinstatement.
Mortgage Modification. While this option may be desirable, it can be difficult or impossible to achieve. It requires that the mortgage holder voluntarily agree to change the terms of the loan. Typically, before considering this option, a mortgage holder would require that the homeowner provide detailed financial information including evidence of financial hardship. A mortgage modification can come in any number of formats. It may entail that the arrears be recapitalized into the loan (the loan declared current with the amount owed adjusted upward to include late fees, costs and accrued interest). Mortgage modification may entail that the interest rate and the resulting payment be reduced. In rare cases, a mortgage holder may agree to reduce the amount owed. If mortgage modification seems to be an option for you, our experienced foreclosure lawyers at PERENICH The Law Firm are here to help.
Bankruptcy. While some may consider bankruptcy a “stigma” or an “admission of failure,” bankruptcy often provides the most legally advantageous response to foreclosure. Contrary to those views, bankruptcy is all about making a positive fresh start after difficult circumstances. Depending on the situation, a bankruptcy can enable a homeowner to keep the home and reinstate the mortgage. Or, bankruptcy can minimize or entirely eliminate the otherwise adverse impact of surrendering the home. Consult a foreclosure attorney at PERENICH The Law Firm if you are confronted with a bankruptcy situation.