Orlando Foreclosure Attorney
Defending mortgage foreclosure is your right as a homeowner. Is your Orlando home in mortgage foreclosure? Or have you received a notice from your lender that you are in default of your mortgage? Working with an experienced and skilled attorney to defend mortgage foreclosure can help you save your home, or ease the transition to your next living arrangements. You might need the services of our Orlando foreclosure attorney.
First you need to understand some of the basics.
In the event a homeowner defaults on their mortgage and foreclosure proceedings begin, the equity home remains with the homeowner. The foreclosure process however can erode the equity. Here are several points about home equity:
What Is Equity?
Equity is the difference between the current market value of your home and the amount you owe on it. It is the portion of your home’s value that you own. For example, if you purchased a $250,000 home with a 20 percent down payment of $50,000 and a mortgage loan of $150,000, the equity in your home is $50,000.
Even in Foreclosure, Equity Belongs to the Homeowner
Foreclosure is the legal steps the banks or the mortgage holder will take after a home loan goes in to default. The time period between the last payment and when default is declared, and foreclosure begins can vary. However, if a homeowner misses several payments, the lender will place the loan in default before starting foreclosure.
If the homeowner can’t secure new financing or sell the home on their own, the lender has the right to sell the home at auction or for whatever price they choose. If the home doesn’t sell at auction, the lender can sell the home through a real estate agent.
The issue for the (former) homeowner then is that equity of the home’s value. If the house is sold and there is money left over after the loan and all fees and penalties are paid, that is equity and that belongs to the homeowner.
There is an issue with that leftover equity however
The equity is being lost before foreclosure even starts. Late-payment penalties from the missed payments will be factored in for example. So, if a homeowner misses six payments before the default, six late payment fees will be added to the total loan, and in turn the equity will be reduced.
The lender can also charge fees to process those late payments; in addition, the default declaration, the foreclosure proceedings and the expenses of the sale will against the equity. These fees can add up to thousands of dollars and will be added.
New Home Appraisals Reduce Equity
Once a home goes into foreclosure, the lender has the home appraised for an auction sale. Many times, the lender will take an offer of 90 percent of the home’s appraised value. Lenders don’t want to own a home. Lenders will then typically accept low home appraisal values giving the home a better chance to sell at auction and not have to be listed with an agent. The reduced appraisal value means a lower sales price and means a lower amount of money left over after the loan and fees are paid.
In Florida, all mortgages are foreclosed in equity. That means that in a mortgage foreclosure action, the court severs, for separate trial, all counterclaims against the foreclosing lender. The foreclosure claim then, if tried, be tried in court without a jury.
The court order of foreclosure will specify how the foreclosure must take place, and the foreclosure must take place on those terms. Whenever a legal advertisement, publication, or notice relating to a foreclosure proceeding is required to be placed in a newspaper, it’s the responsibility of the lender or their representative to place such advertisement, publication, or notice.
Equitable Right of Redemption ends at the foreclosure sale (or at another time specified by the courts, but this rarely happens). There is a period of time after the sale that “the court reviews the sale to ensure a fair price has been paid.” Basically, this period of time allows parties to object to the sale on the basis that proper procedures were not followed or collusion existed between the bidders, for example. This period is usually 10 days, after which the Certificate of Sale is filed and title passes, if the sale is confirmed. If the sale is not confirmed, another sale is ordered.
Every homeowner in foreclosure has legal options
Orlando homeowners in mortgage foreclosure are experiencing the challenges brought on by unprecedented economic decline. Large institutional lenders and banks are clogging the courts by seizing homes at an unprecedented rate. They are hoping that Orlando homeowners will not defend their mortgage lawsuits. As a homeowner, you can benefit from having an Orlando foreclosure attorney on your side to help your family stay in your homes while facing unemployment, uninsured medical bills, or the financial distress caused by economic forces outside of your control.
As a homeowner who has invested money, time and effort into owning your home, you are entitled to:
- Demand that the Bank follow legal procedure in the mortgage foreclosure lawsuit
- Require that the bank comply with all court procedures before taking back your house
- Use the protections of Florida Mortgage foreclosure law and the courts to enable you to arrange your affairs
- Make sure that the bank is the correct party to be foreclosing against you
- Protect yourself from a deficiency judgment for the mortgage debt
- Have an informed guide to help you through the mortgage foreclosure process.
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As an experienced Orlando foreclosure attorney, Jeff Badgley can help you understand the realistic options that are available through the legal system. We can help you avoid being taken advantage of by lenders, and other players in the mortgage industry, many of whom may have violated Florida or Federal laws in obtaining and enforcing mortgages on Central Florida and Orlando area homes.
CONTACT OUR ORLANDO BANKRUPTCY ATTORNEY TODAY!
You may benefit from aggressively defending the mortgage lawsuit, or it may be time to consider a bankruptcy proceeding to work with your lender to find a way to keep you in your home.