FORECLOSURE DEFENSE

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When I need my roof repaired, I call a roofer. When I need a light switch rewired, I call on my electrician. When my automobile needs servicing, I seek an experienced mechanic. These are all things that I can probably learn myself if I am willing to put forth the time and effort required. Instead, I seek knowledgeable and experienced people who are trained in these things. Not only do professionals get it done quicker, they get it done right the first time. The same holds true for defending your home in foreclosure lawsuit. The advice I can give you is to get good advice. It is as simple as that. This means finding a trusted attorney with the knowledge, skill and experience to handle your foreclosure defense case. There is no room for error when it comes to defending your home from your lender who is intent on taking it away from you.

It is also important that the attorney you choose does not type cast your case with the rest of the clients he handles. Just like every roof or car is different, so is your case. You certainly would not want your mechanic to replace your alternator simply because he feels that sooner or later it will need replacing, regardless of the issues that you are currently facing.

Similarly, when facing foreclosure, a clear and individualized legal solution is critical. With over 20 years of foreclosure experience, the Deeb Law Firm provides practical solutions for your complicated legal problems.

As a real estate and business law firm, we are able to provide comprehensive legal support in many areas like Foreclosure Defense, Asset Protection, Loan Modification, Real Estate Litigation, Loss Mitigation, Short Sale Negotiation, Bankruptcy and other related services.

We are knowledgeable and up to date on current issues relating to the mortgage crisis and can provide strategies for your case using cutting edge legal theories. We ensure that our clients have been apprised of the risks and benefits of pursuing a certain course of action, enabling them to make the best strategic decisions before proceeding.

If you are in foreclosure or might be facing it soon, ask for a free office consultation with an attorney at the Deeb Law Firm. We will evaluate your situation and determine the legal options that are available. The experienced foreclosure lawyers at the Deeb Law Firm can help you navigate through the complex and seemingly overwhelming situation of foreclosure. We can save your home or help you get out of it as painlessly as possible. And if you – like so many others – do not intend to keep your home, we can help you avoid the liability associated with it. As each case is different, please contact us for a free evaluation.

CLICK HERE for a free consultation.

 

As posted on the Deeb Law Firm's The Real Estate and Business Blog, a Florida Law Talk Blog on September 29, 2009

When in Foreclosure, Don't Strip Home of Appliances and Fixtures posted by Kevin L. Deeb

There have been recent reports about property owners in foreclosure that are stripping down or vandalizing their homes just before the sheriff’s sale. Appliances, including air conditioning units and pool pumps, are being sold for pennies on the Dollar. A television news reporter recently interviewed a woman that was actually selling her toilets. She felt that she should get every penny out of her home before losing it to the lender. Whether the housed is stripped for profit or otherwise intentionally vandalized, the wrong-doer might just later learn to regret it.

When the lender forecloses on real property, it obtains a final judgment for the total amount due on the mortgage, including interest, costs and attorney’s fees. When the property is worth less than the judgment, it is very unlikely that an investor third party will bid on and buy the property at the public auction. When there are no bidders, the lender then takes title to it.

Lender owned property (also known as “Real Estate Owned” or “REO’s”) will later be listed with a real estate agent and sold at market value which, during these times, will most likely be less than the final foreclosure judgment. In addition to the real estate agent’s commission, the lender will also incur closing costs which will reduce the amount of money they will receive at closing. The difference between the final judgment and the amount of money the lender recovers when it sells the property is referred to as the “deficiency.” And the lender is then free to seek a “deficiency judgment” against the borrower (the party that lost the property in foreclosure).

Should the lender be required to remodel, repair or purchase appliances in order to sell the property, the deficiency will only grow and therefore the deficiency judgment will be greater. The same is true when the selling price reflects the property’s poor condition.

Aside from the ethical issues raised when one destroys or strips the home before losing the property at public auction, it is, or can be, financially detrimental to do so. Currently, it seems, most lenders are so inundated with foreclosures that they have yet to pursue deficiency judgments against those they have foreclosed upon. It is only a matter of time, however, before the number of foreclosures is reduced to the point where the lenders can then focus on collecting on these deficiency judgments.

As an attorney, I have yet to see lenders pursue these judgments. Indeed, no one has come to me for help for protection under these circumstances. But I believe that it is all a matter of time before it happens. Obviously, there are other alternatives to allowing the property to be sold at public auction. In previous posts, I have discussed other options such as short sales and deed-in-lieu as possible alternatives to foreclosure. Albeit, the lenders are not always agreeable to forgiving the deficiency when accepting a short sale or deed-in-lieu, but when they do, this is the best course of action for the property owner to take when in foreclosure.

Property owners that ignore or neglect a foreclosure will only face deficiency judgments later on, when they incorrectly assume that the public auction is the end of the road for the lender. There could be no bigger mistake for the property owner assuming that stripping or vandalizing the home is a way to get the last “jab” in against the lender. They could, more likely than not, be faced with a judgment that includes amounts for the items stripped or damaged – much more than what they were able to get during the fire sale or the short-lived and misguided satisfaction they received in damaging the home in the first place.

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SHORT SALES

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The process of completing a short sale requires much communication with the mortgage lender often dependant on the borrower's financial status and the property's condition and value. An attorney has the skill and ability to draft supporting documentation with the proper explanations that will most protect the homeowner's best interests. An attorney also has access to experienced and knowledgeable real estate professionals willing and capable of properly marketing and selling the property at the expense of the lender - and not the homeowner. The presence of an attorney throughout the short sale will provide legal guidance and security to the homeowner, resultantly making the short sale transaction as smooth and as simple as possible for the property owner.

Here at the Deeb Law Firm, we are dedicated to representing the seller throughout the short sale process. Our fees ultimately come from the proceeds of the home - not the client.

There are other more complex advantages and disadvantages of the short sale process. Everyone's situation is unique and an attorney should be consulted for individualized advice before proceeding with a short sale. Please contact us for a free consultation.