Foreclosure Defense in Florida
Florida attorney Nickolas C. Ekonomides can HELP YOU STOP Foreclosure in Florida. His office assists home owners in protecting their legal rights with Florida Foreclosure Defense services.
After Attorney Nickolas Ekonomides has personally discussed your situation fully and truly understands YOUR Florida foreclosure matter, he will present and recommend potential legal solutions for your best interest. This may include a HAMP loan modification or acting as your Short Sale Attorney as well as your Foreclosure Defense Attorney.
Foreclosure is upsetting and you need to know your rights and exercise them through your Mortgage Foreclosure Lawyer. Foreclosure is also complex and daunting and can easily seem overwhelming if you are not familiar with legal process and procedure. If you first want to familiarize yourself with the many complex legal issues that may be involved in your own mortgage foreclosure, click HERE to review a Foreclosure Attorney Motion to Dismiss.
Please Note: if your property is already in foreclosure and a “lis pendens” has been recorded against the title of your home, it is critical that you act IMMEDIATELY to start your MORTGAGE FORECLOSURE DEFENSE. If you wait too long, your lender will take your home and you will not have enough time to effectuate a Short Sale, Deed in Lieu of Foreclosure, or other resolution including negotiation of the deficiency.
What Constitutes a Mortgage Loan?
Even if the lender agrees to a short sale, this only only guarantees the BUYER will buy your home free and clear of your Mortgage. You are not free and clear of repaying the entire loan amount as you agreed in the Promissory Note. The Mortgage is only the security agreement that allows the lender to take your home. Even if you are free of the Mortgage, you still owe the money under the Promissory Note.
A “Mortgage” has two main parts: the Mortgage which is recorded in your county public record system, and the Promissory Note which is just between you and your lender. Through the Mortgage, you make various agreements with the lender and in exchange the lender advances you the loan amount evidenced by the Promissory Note. One of the agreements you make in the Mortgage is to give the lender the right to take your home (foreclose their interest in it through mortgage foreclosure) if you don’t pay back the loan in a timely manner.
The loan amount is evidenced by the underlying agreement to lend you the money in the first place – the Promissory Note. When you miss a payment under the Promissory Note, the lender calls the note into default and files a foreclosure action based on its rights contained in the Mortgage. As you can see, without the Promissory Note, the Mortgage is relatively meaningless. At the same time, even as the lender agrees to a Short Sale and to take the Mortgage off the title of your house, you can still be sued for the entire amount due under the Promissory Note. That amount, less than the amount the house brings in, is the Deficiency Amount which turns into a Deficiency Judgment against you.
Short Sale of Homes, Deficiency Judgments, and Walking Away
Many borrowers feel it makes no difference if they can’t get a Loan Modification and that they will just walk away from the underwater home. Keep in mind, states allow Deficiency Judgments and Florida is one of them. Deficiency Judgment Definition: to put it in simple terms, you are looking at the difference between what your property is worth and how much is owed on your loan plus the interest and fees owed since default. That amount becomes a personal money judgment against you.
So after being served foreclosure, and if a HAMP Loan Modification is not available, the goal is to have the lender agree to a Short Sale or to voluntarily take back the home (through stipulated foreclosure or deed in lieu of foreclosure) and to negotiate down the deficiency. It is better to start Short Sale or Deed in Lieu of Foreclosure talks well in advance however.
Many borrowers don’t realize: i) lenders typically require the home be listed for sale first and in the case of Short Sales, require a written offers from prospective buyers, ii) lenders typically want to review the financial statements of the borrower to determine the amount of short payoff they are willing to accept, and iii) it is difficult to get the lender to agree to release the borrower from the note which can result in a Deficiency Judgment.
Getting on top of your Foreclosure Defense is the key starting with the HAMP process as soon as you think you are about to miss a payment. Walking away only guarantees the likelihood you’ll suffer the maximum amount of Deficiency Judgment against you.
Call Florida Attorney Nickolas Ekonomides at 813-200-4743 for your free Foreclosure Defense consultation.