Foreclosure & Mortgage Modification

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If you need foreclosure help, taking an active role early plays a major role in avoiding foreclosure or to stop it. Regardless of the circumstances, you do have options if you cannot meet your monthly mortgage obligations.

If you currently are unable to make your mortgage payments, it is critical to take action now in order to stop a potential foreclosure. Ignoring the bills and not seeking legal advice can make matters worse, increasing the likelihood that you'll ultimately lose your home. Borrowers who seek foreclosure help early are much more likely to work out a meaningful solution, no matter how advanced their foreclosure situation. Typically banks do not want to foreclose on your property they are much more interested in collecting payments every month, than owning, rehabilitating, and marketing foreclosed homes. Based on your situation, we may be able to work with your lender to avoid a foreclosure.

If you are facing a situation where you are unable to meet you monthly mortgage debt there may be many options for you to explore. Each takes time and each offers certain advantages and disadvantages.

If you have been served foreclosure summons and compliant you only have 20 days to answer the complaint against you. If you don't answer, or don't answer correctly, you may waive several legal defenses that can be asserted on your behalf and the bank can then ask the court to rule in their favor on motion of Summary Judgment.

At McCarville Law, P.L. we specialize in foreclosure defense. We can use the rules and laws already in place to put you on equal footing with your lender. By defending a foreclosure lawsuit an owner can buy precious time to successfully negotiate a loan modification, short sale, deed in lieu of foreclosure, look into the benefits of bankruptcy, and otherwise give you the time you need to make an informed and intelligent decision about what is the best course of action for you proceed.



  Mortgage Modification   Useful Links:

Mortgage loan modification is a great solution for a borrower who wants to stay in their property, but can't afford the current payment but still has income and may be able to afford a lesser mortgage payment. Mortgage loan modification is also a solution when the payment has not been made for a while, but the borrower can now afford to start making payments again.

A mortgage loan modification is a permanent change in one or more of the terms of the loan that will allow the loan to be reinstated and results in a payment you can afford. For example changing the amortization schedule of the loan and/or lowering the interest rate can make a big difference, reducing monthly payment amount to something the borrower can afford to stop a foreclosure.

The following are possibilities that we can procure through the mortgage modification process:

  • Lowering the monthly payments
  • Reducing or modifying the interest rate
  • Extending the term of the loan
  • Reducing the principal balance
  • Deferring delinquent money payments onto the end of loan

If mortgage modification seems like the right option for you, contact us for a consultation.

Beware of any non-attorney who claims they can assist you in modifying your mortgage. The Foreclosure Rescue Act, Section 501.1377, Florida Statutes, went into effect October 1, 2008 and imposed restrictions on non-lawyer loan modifiers offering to protect distressed homeowners. Only a lawyer licensed in Florida can modify your loan. Non-lawyers are prohibited from doing so. There have been many recent stories in the press of large national loan modifications companies being investigated by the Attorney General from many states across the Country. These companies collect high fees and have a reputation for failing to deliver any real results for their clients.

bullet   Short Sale    
    A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank agrees to discount a loan balance because of an economic or financial hardship on the part of the owner.

The home owner will attempt to sell the property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Many lenders will agree to accept the proceeds of a short sale and may forgive or be willing to negotiate on the rest of what is owed on the mortgage. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Negotiating a Short Sale with the lender can be a lengthy and difficult process. The lender may require a written contract with you and the buyer, a HUD-1 or settlement statement of the sale, a buyer assurance letter stating the potential buyer is approved for the new loan, proof that the house has been on the market for a period of time with a Real Estate Agent and financial information from you.

Many short sales fall through for a number of reasons. We can successfully negotiate short sales for many home owners and we know what documentation the lender needs for approval and in what order.

Contact us for more details.
bullet   Deed in Lieu of Foreclosure    
    If you can no longer afford your property and a modification or short sale will not work for you needs, your lender may agree to accept a Deed in Lieu of Foreclosure. A Deed in Lieu of Foreclosure is a conveyance of the property from the property owner to the current mortgage holder. The conveyance is done to avoid foreclosure proceedings. Like a short sale, whether or not the mortgage holder agrees to accept the Deed in Lieu of Foreclosure as full satisfaction of the underlying debt depends on each lender and the specifics of the transaction. Not all properties will qualify for a Deed in Lieu of Foreclosure. If there are any existing any liens or judgments recorded against the property owner or the property or if the property is encumbered by a second mortgage, then the property will not qualify for a Deed in Lieu of Foreclosure. Contact us for more details on Deeds in Lieu of Foreclosure.    
bullet   Other Possibilities    
    Depending upon your unique situation there may be other options and possibilities than listed above available to you. Please fill out the free case evaluation form or call us for further advice on how to prevent a foreclosure.