Foreclosure

Longa Law helps clients with foreclosure avoidance, defense and loss mitigation.  We have experience negotiating with lenders to obtain loan modifications, pay-offs with reductions, short sales, and deed-in lieu of foreclosure.  We also aggressively defend foreclosure lawsuits.  In fact, foreclosing lenders fail to comply with procedural and substantive foreclosure requirements all of the time.  

If you are facing foreclosure and want to know what your legal options are, consult with an attorney.  Make an appointment and bring in your complaint for a free case review.  Longa Law is devoted to fighting the good fight for homeowners.

Understanding Foreclosure in Florida

In Florida, Foreclosure is a judicial process.  This means that the entire process is handled through the Florida court system.  A foreclosure starts when the lender, servicer or bank files a lawsuit against the homeowner(s).  The homeowner will then be served with a summons and complaint.  If the owner has tenants or a Home Owners Association (HOA), they may also be served with the lawsuit.  The owner or named Defendant(s) in the lawsuit generally have just 20 days to file an Answer that responds to each allegation of the Complaint.  If an Answer is not filed within the set timeframe, the Court will issue a default judgment against them and in favor of the bank.  An owner who needs additional time to prepare an Answer, can also file a Request for Extension of Time.

Remember that all lawsuits are public record.  If you are behind on payments and want to see if your Iender has filed a lawsuit, you can search active cases online at the local county clerk of court’s website.  Sometimes lenders or services will tell homeowners that they are in foreclosure as soon as they are in default, even though the lender has not filed the lawsuit yet.  If the lender has not yet filed a foreclosure lawsuit against you, then you are “Pre-Foreclosure,” as explained below.

Pre-Foreclosure:  Default & Acceleration

A borrower is pre-foreclosure when they no longer make payments on the mortgage.  The bank will send a delinquent owner a Notice of Default.  Defaults are usually the result of a failure to pay (for three months, typically), but a borrower can also be in default on a mortgage for another breach, such as failure to maintain hazard insurance.   A delinquent borrower should receive a Notice of Default before a foreclosure lawsuit is filed, unless the mortgage specifically states otherwise.  The Notice of Default will state that the homeowner is behind on their payments and will likely list the steps that must be taken to become current on the mortgage.  Generally, if the owner is delinquent on the loan, the creditor has the option to accelerate the debt due under the promissory note.  That means that the full unpaid balance of the debt will become due immediately.  Unless the debtor pays off the loan immediately, acceleration will lead to a default on the total balance of the loan.  The lender can then enforce its remedies to collect on the total remaining balance, which includes forcing a public sale of the collateral to satisfy the obligation.

Foreclosure Procedure

The owner and holder of the note and mortgage files an action in either the county or circuit court in the county where the property is located.  To obtain a foreclosure, the Plaintiff (party filing the lawsuit), must prove that there is a valid mortgage between the parties, that the borrower is in default on the note, that the lender is entitled to a foreclosure, and also that the proper procedure has been followed.  The Plaintiff must file the lawsuit within the required timeframe (5 years from acceleration of the mortgage under the Florida Statute of Limitations) and must follow proper procedure in serving the homeowner and any other Defendants.  HINT:  IF THE PARTY SUING YOU IS NOT YOUR LENDER OR THE BANK YOU HAVE BEEN PAYING, THEN PICK UP THE PHONE AND CALL US NOW BECAUSE THIS COULD BE A BIG ISSUE THAT CAN KEEP YOU IN YOUR HOME!

A Notice of Lis Pendens is filed in the public records to warn all persons that the title to the property is in litigation.  “Lis Pendens” means suit pending.  It is not a lien, nor does it create one.  All it does is put the world on notice.

FILE AN ANSWER TO THE LAWSUIT!

If you are served with a foreclosure complaint, do not panic or move out.   A delinquent borrower remains owner until the foreclosure is finalized and the property is sold.  The judicial process gives the borrower an opportunity to review and challenge the amounts claimed by the lender.  You have just twenty days to file an Answer to the complaint.  If you do not, then the Plaintiff can obtain a judgment against you.  The harder the borrower fights in the lawsuit, the more likely it may be that the lender is willing to negotiate, especially if the bank is unable to verify its claims, standing or capacity.  Foreclosing lenders fail to comply with procedural and substantive foreclosure requirements ALL OF THE TIME.    

Make an appointment and bring in your complaint for a free case review.

What is Foreclosure Defense?

Foreclosure defense involves much more than just filing an Answer.  While you can try to defend the foreclosure lawsuit yourself, the other party will have an attorney, so shouldn’t you?  A skilled litigation attorney will be able to not only negotiate with the bank but also defend you in court.  We charge our clients a reasonable, monthly payment plan that is based on the number of billable hours we work on your case.  If we do no work for you any given month and you have no balance, you will owe us no fee.   Here are some of the services that will be performed on your behalf should you choose to retain Longa Law:

• Communications with Lender or its servicer on Client’s Behalf
• Provide Legal Advice and Answers to Questions
• Conduct a Legal audit of Mortgage and Note, if necessary
• Prepare Answer to Complaint and aggressively assert any defenses and counterclaims Client may have
• Prepare and File a Motion to Dismiss Plaintiff’s Complaint, if possible
• Request a Mediation for Homestead Property, which is a settlement conference with the bank and a  neutral third party
• Research and Investigate any issues or potential violations of federal or state law
• Prepare and send discovery requests to Plaintiff
• Represent Client at Mediation
• Represent Client at Court Hearings
• Conduct negotiations with Lender/Bank on Client’s Behalf
• Oppose Motions filed by Lender/Bank
• Prepare hardship letter for client, when necessary
• Prepare Defendant’s responses to discovery requests
• Review any offers for loss mitigation or short sale for Client
• Review property or realtor contracts for Client

Longa Law offers clients a free thirty to sixty minute foreclosure avoidance consultation where an attorney will review the complaint and discuss your goals and options with you.  If after the consultation, we think we can help you and you decide to retain this firm, Attorney Longa will prepare an Answer to the Complaint that asserts your rights, defenses, and any claims that may be available to you.  Contact us for details or call the office to schedule a free foreclosure avoidance consultation. 

Please note that the information provided here is not legal advice and does not create an attorney-client relationship.  For specific legal advice, consult with an attorney.