Orlando Foreclosure Defense

Crime does not always involve a gun, sometimes its the seductive words of a clever con artist that knows exactly what to say to a desperate person. The promise of professional help from supposed experts is always an alluring prospect. Most people are trusting and honest, they will take people at their word that this expert is licensed and sincere in their advances to help the homeowner out of their troubles. Con artists will falsely tell a desperate homeowner they have a special relationship with lenders and guarantee they can stop foreclosure. The promise to deliver on saving the homeowners home is seductive and blinding. These con artists have used this to their advantage to rip off unsuspecting homeowners. One of the most popular ways the con artist will operate is by asking for money up front for their fees with the promises that they will negotiate with the lender on their behalf. These con artist, if they do negotiate with the lender are either doing the bare minimum phone calls or more likely doing nothing at all. It is a growing problem in the state of Florida, and has gotten the attention of the government. Since October 2008, Florida’s Economic Crimes Division has filed 17 civil lawsuits for mortgage fraud or foreclosure rescue violations, recovered $1.5 million in restitution for distressed homeowners and shut down several businesses. The Attorney General’s office has also investigated 83 businesses for potential violations of Florida’s Foreclosure Rescue Fraud Prevention Act. This problem is real and present in Florida, there are street signs on telephone polls promising the world to homeowners, or they prey on them over the telephone. The most important thing for any home owner to be is skeptical of any one promising them help, especially if the person offering you help is contacting you over the internet or telephone. Having to pay for a service before you get it should always serve as a warning to any home owner that the person you are dealing with may be up to no good. “If consumers are asked for an up-front fee, are told to stop making their loan payments, or are guaranteed” a modified loan - it’s a tip off to a rip off,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection.

In this volatile real estate market and recession economy, many homeowners are faced with the difficult decision of choosing between filing a bankruptcy and defending a foreclosure. Unfortunately, the dominant thought among most attorneys is that bankruptcy is the proper remedy to address foreclosure. Our law firm handles both foreclosure defense and bankruptcy, so we have the benefit of seeing both sides of the coin.

For many individuals with extensive consumer debt or medical debt, as well as debt relating to real estate, bankruptcy is an option. (however, one should never forget the power of negotiating debts).

For those individuals who are mainly dealing with debt relating to their real estate holdings, it is often a poor decision to file a bankruptcy prior to defending a foreclosure.

For those individuals trying to save their homes or real property, a Chapter 7 bankruptcy will do little to save a home, except briefly delay a foreclosure case. In fact, Chapter 7 is designed to liquidate debt. For those individuals considering Chapter 13 bankruptcy, they will be met with an often difficult and lengthy repayment plan. Bankruptcy judges are not endowed with the authority to modify mortgages; therefore, Chapter 13 is often not helpful to homeowners.

A clearer way to protect a home is to pursue one of the many foreclosure alternatives including loan modification, reinstatement, or refinancing. Often these alternatives take time and may take skilled legal advice. While in the process of pursuing foreclosure alternatives, property owners may be sued for foreclosure. A skilled foreclosure attorney can help defend the foreclosure and advise borrowers regarding foreclosure alternatives.

Many people are not interested in saving their homes. Perhaps they have no equity or are upside down, where they owe far more than the property is worth. Perhaps they do not have the financial means to qualify for a loan modification, reinstatement, or refinancing. Or perhaps they are simply tired of the system- they are fed up with dealing with banks. Many people fear a deficiency judgment more than anything else. A deficiency judgment may arise where a borrower’s property sells at a foreclosure auction for less than the amount that is owed on the loan. In such a scenario, the borrower could be held responsible for the difference owed or the “deficiency” amount.

While the potential for a deficiency judgment is a valid fear for homeowners, there are tools and options that will avoid a deficiency without filing bankruptcy. First, the homeowner may enter into a short sale, where the bank approves the sale of a home for less than the amount owed. In a short sale, the bank forgives the difference owed and the borrower is relieved of any liability.

Another solution to avoid a deficiency judgment is a “deed in lieu of foreclosure.” In a deed in lieu scenario, the borrower turns the deed over to the lender in lieu of foreclosure; this means that the lender promises they will not file a foreclosure or seek a deficiency judgment against the borrower. A deed in lieu avoids a deficiency judgment, without the need to file bankruptcy.

Finally, for those individuals already facing a foreclosure lawsuit, a skilled foreclosure lawyer should be able to defend foreclosure cases and negotiate a favorable “consent judgment.” In such a consent judgment, the borrower consents to the entry of a foreclosure judgment in exchange for the banks promise and guaranty to waive any deficiency against the borrower. Many of our clients want us to time the entry of such a consent judgment so that they are able to get the maximum time in their home. This arrangement affords our clients the maximum use of their property and also allows our clients the opportunity to pursue other options as they see fit, including loan modification or reinstatement. There is a great deal of value for those borrowers that choose to pursue a consent judgment- the borrower essentially walks away from the property without owing money to the lender, and without having to file a bankruptcy.

While not every homeowner may be able to pursue a loan modification, short sale, deed in lieu or consent judgment, these are excellent options to avoid debt and avoid filing a bankruptcy. Moreover, while borrowers pursue these options they are able to continue living at the property, or renting the property to tenants. This usually means that money is saved or money is earned. Finally, if these foreclosure options do not work out in the long run, bankruptcy is always a failsafe option- it can always be filed if everything else fails.

The Kramer Law Firm defends foreclosure and represents individuals in bankruptcy throughout Florida. For more information on mortgage foreclosure defense, please visit http://www.mykramerlawfirm.com/Foreclosure-Defense-Overview/Foreclosure-Defense.shtml. For information concerning bankruptcy, please visit http://www.mykramerlawfirm.com/Bankruptcy-Overview/Bankruptcy.shtml. The above article is not intended as legal advice and should not be taken as such. Always consult with an attorney of your choosing concerning any legal questions that you may have.

As seen on Fox 35 for Foreclosure Defense

“Orlando Homeowners facing foreclosure may be able to hold onto their homes by making a simple request of their bank: Show me the note.

In essence the homeowner is requiring the lender to show the original mortgage paperwork.

And just like that, the foreclosure proceedings came to a standstill.

Homeowners around the country are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess.

During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors.

In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed.”

Persuading a judge to compel production of hard-to-find or nonexistent documents can, at the very least, delay foreclosure, buying the homeowner some time and turning up the pressure on the lender to renegotiate the mortgage.

One Orlando foreclosure defense attorney says in almost all cases he sees, the lender can’t produce the original mortgage paperwork signed by the homeowner.

“It’s always ‘we’ve lost the note, it’s destroyed, it’s stolen, we don’t know where it is’, but we want to collect on the note’”, said Steven Kramer of the Kramer Law Firm.

Kramer said if pushed, banks usually produce the note, but homeowners can stay in their homes longer and have time to negotiate with the lender to possible get a lower payment they can afford.

“I don’t think it’s a stalling tactic,” Kramer said. “But by forcing the banks to do what they’re supposed to do, to do the right thing and produce the original note, homeowners will get more time.”

Tom Deutsch, deputy executive director of the American Securitization Forum, a group that represents banks, law firms and investors, dismissed the strategy as merely a stalling tactic, saying homeowners are “making lawyers jump through procedural hoops to delay what’s likely to be inevitable.”

Deutsch said the original note is almost always electronically retained and can eventually be found.

Judges are often willing to accept electronic documentation. And lenders are sometimes allowed to produce other paperwork to establish they are the holder of a loan. Still, assembling such documents to a judge’s satisfaction takes time, which to homeowners is the point.

The practice is becoming so common that one Tampa lawyer created the web site Consumer Warning Network to promote the produce-the-note strategy nationwide.” - You can read the full article on My Fox 35 News website at http://www.myfoxorlando.com/dpp/news/Show_Me_Note021809

Even if you are aware that the price of a home has dropped an average of twenty percent, nationally, since the mid-2006 peak it still may shock you that Florida is included in one of the top four states with mortgage foreclosures and that these states alone make up over 60 percent of total mortgage foreclosures in the nation. In October 2008, there were over 3000 new foreclosure filings in Orange County alone.

If you are one of the many homeowners in Orange and Seminole counties facing the possibility of a mortgage foreclosure you should be aware that there are options available for you. Understandably, the mere thought of the word “foreclosure” invokes thoughts of fear, feelings of desperation and all loss of hope in the minds of many. But the reality is, because the mortgage foreclosure process is so poorly understood, many people are too afraid to explore possible alternatives. That is why it is a good idea to consult with a mortgage foreclosure defense attorney to determine a course of action that could possibly save your home.

The worst thing to do when facing foreclosure is nothing. Experienced mortgage foreclosure defense attorneys will evaluate your situation on a case by case basis, allowing you to mount a solid defense against predatory lenders , problems with the loan itself or missing promissory notes.

Aside from simply defending your case in court, mortgage foreclosure defense attorneys can help you assess possible mortgage foreclosure alternatives and may be able to keep you in your home for several months during foreclosure proceedings. It is important to know that while filing for bankruptcy may be helpful for some, it does not have to be the only hope for all.

Florida forclosures by the nubmers: http://www.realtytrac.com/states/Florida.html