The Home Affordable Foreclosure Alternatives (HAFA) Program was enacted as part of the Homeowner Affordability and Stability Plan (HASP) in 2009 as a reaction to the subprime mortgage crisis and subsequent economic slowdown. The HAFA program offers borrowers options of short sales or deeds in lieu to get out from under mortgages they can no longer afford to make payments on. HAFA short sales differ from traditional short sales, in that the borrower does not owe the difference between the original purchase price and the final sale price. This saves the borrower from further hardship and does not affect their credit score as negatively as a foreclosure. Additionally, the program offers other benefits to both lenders and borrowers, such as subsidies to cover administration costs and up to $3,000 in relocation assistance.
Currently, the HAFA program is scheduled to sunset on December 31, 2013. This means that if you wish to participate in the program, you need to submit a Request for Mortgage Assistance (RMA) by the deadline date. To be safe, you should make arrangements that the RMA arrives by the sunset date, and is not simply post-marked on the date. Additionally, the deal must be closed by October 1, 2014. As with all federal programs, HAFA may get extended, but do not count on it. It is important to begin the process as soon as possible.
Participation in the HAFA program is contingent on a number of eligibility requirements and completion of numerous forms. It is highly advised you consult with an experienced real estate attorney to work with your mortgage provider to ensure you obtain favorable terms and the process is followed correctly.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
It is an unfortunate reality that many individuals have had to go into foreclosure as a result of the economic downturn. Some people have been successful at paying down their mortgage by renting out extra rooms to increase cashflow. However, sometimes it is not enough and the property still goes into foreclosure. However, this creates a complex scenario where you and your tenants may have different rights going forward.
Much of the difference comes down to whether or not your tenants are “bona fide.” According to federal law, tenants are bona fide if they are not part of the immediate family of the owner/landlord, the lease was executed as an “arm’s length transaction, and they are paying a fair market rate to live there. If the tenants are not bona fide, they are not protected under the Protecting Tenants at Foreclosure act and will need to vacate the property within 60 days after receiving notice from the new owner. Bona fide tenants must vacate within 90 days after notice from the new owner.
As the previous owner/landlord, your rights are different. After the foreclosure, you may be served with a Writ of Possession that gives you 24 hours to vacate the property. The new owners may be interested in having you lease the property from them, allowing you to stay longer.
As you can see, these situations can be extraordinarily complex, so it would be beneficial for you to work with an experienced attorney that can file the necessary forms and fight for your rights and interests.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
In Florida, the statute of limitations on any action by a creditor to collect a debt is five years from the date of default or acceleration. This means that if the statute of limitations expires, your lender cannot initiate a foreclosure action. However, it’s important to note that the lien, which is the legal claim or “hold” on the property due to an unpaid debt, remains a burden on the property for at least another 15 years from the date it was originally recorded.
The Impact of Mortgage Discharge in Bankruptcy
When a mortgage is discharged in bankruptcy, the debtor is released from personal liability for the loan. This holds true regardless of whether the lender was deeded back the property during the bankruptcy proceedings. Therefore, if your mortgage was discharged in bankruptcy, you are no longer personally liable for the debt. Additionally, any deficiency judgment, which is a court order to pay the balance of a loan when the proceeds from the sale of the collateral are not enough to cover the debt, is wiped out by the bankruptcy.
The Persistence of the Lien
Despite the discharge of the mortgage in bankruptcy, the lien remains against the property. This means that your lender may still legally foreclose on the property as a way to wipe out secondary liens and cover losses. The foreclosure action is solely against the property, as you’ve been released from liability. However, the foreclosure should not appear on your credit reports unless it began prior to your bankruptcy filing.
Foreclosure Actions Post-Discharge
Even after the discharge of the mortgage in bankruptcy, your lender may proceed with a foreclosure. You may be named as a party of interest in their filing, but remember, the foreclosure action is solely against the property, not against you personally. If your lender is attempting to collect from you, they may be in violation of the discharge or state consumer laws. It’s crucial to consult qualified professionals for guidance in such situations.
Navigating Post-Discharge Foreclosure and Collection Attempts
Dealing with potential foreclosure actions and collection attempts after a mortgage discharge can be complex. It’s crucial to seek professional advice. If you’re facing a situation involving potential foreclosure or collection attempts, consult with a real estate attorney or a bankruptcy attorney. They can help you understand the potential implications and guide you through the process. Remember, every situation is unique, and what applies to one homeowner may not apply to another. Therefore, personalized advice is essential when navigating post-discharge foreclosure and collection attempts.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
Prior to the passage of the Protecting Tenants at Foreclosure Act in 2009, tenants’ rights were superseded by the “successor in interest,” that is, the new owner of the property. The act was passed to prevent tenants from being blindsided with removal notices that left them little to no time to secure a new living situation. Under the Act, the terms of the original lease must be honored if the tenant is bona fide.
In order to be a bona fide tenant, you cannot be the child, spouse, or parent of the original owner/landlord, the transaction must have been conducted at arm’s length (usually involving a contract, no “special arrangements”), and you must pay a fair market rate in rent. If you are found to not be a bona fide tenant, the new owners are not obligated to honor the original terms of the lease and you will likely receive notice to vacate the premises within 60 days. However, if you do meet the bona fide qualifications, the new owner has to honor the existing lease term and must provide at least 90 days’ notice before any eviction actions can occur.
Clearly, real estate matters involving multiple parties and differing rights can be quite complex and frustrating. It would be wise to consult with an experienced attorney who can help you make sense of the various rules, laws, and forms out there. You need someone in your corner who will fight for your rights and get you the best outcome possible.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
Foreclosures are complex processes that involve multiple parties, legal procedures, and financial transactions. Mortgage companies often aim to resolve these situations as quickly as possible, which can lead to errors and oversights. Understanding the foreclosure process and your rights within it is crucial, especially when it comes to the question of liability for the remaining debt after a foreclosure.
The Role of the Promissory Note
A promissory note is a legal document that a borrower signs when taking out a mortgage. It contains the terms of the loan, including the amount borrowed, the interest rate, and the repayment schedule. More importantly, by signing the promissory note, the borrower is making a legal promise to repay the loan. Therefore, the promissory note plays a crucial role in determining who is legally responsible for the debt.
Liability for Debt Without a Signed Promissory Note
If your home was foreclosed but you did not sign the promissory note, you might be wondering if the lender can hold you responsible for the remaining debt. Generally, if you did not sign the promissory note, you are not legally liable for the debt. This is because the promissory note is a contract, and only the parties to a contract are typically bound by its terms. Therefore, if you didn’t sign the note, you didn’t make a promise to repay the loan, and the lender cannot enforce the note against you.
However, there can be exceptions to this rule, particularly in cases involving marital property. For instance, if you are married to the primary borrower, you may be named in the lawsuit due to your marital interest in the property. This is because, in many states, a spouse has a legal interest in property acquired during the marriage, even if they didn’t sign the loan documents. But even in such cases, unless you signed the promissory note, you are not personally liable for the debt. This means that while the lender can foreclose on the property, they cannot typically go after you personally for any deficiency remaining after the foreclosure sale.
It’s also worth noting that some states have laws that protect spouses and other non-signing parties from liability. For example, some states have “anti-deficiency” laws that prevent lenders from seeking a deficiency judgment against a borrower after foreclosure. Other states have “homestead” laws that protect a certain amount of a person’s home equity from creditors. Therefore, the specifics of your liability can depend on both the details of your situation and the laws of your state.
Given the complexity of these issues, it’s crucial to consult with a legal professional if you’re facing a potential foreclosure and are concerned about your liability for the debt. A qualified attorney can help you understand your rights and options and guide you through the process.
Mistakes in Foreclosure Proceedings
Mistakes can and do happen during foreclosure proceedings. Lenders may overlook key details or make errors that can have significant implications for borrowers. For example, a lender might attempt to collect payment from a person who is not legally responsible for the debt. If you find yourself in such a situation, it’s important to be proactive and seek legal advice.
Seeking Legal Advice
Dealing with foreclosure and potential debt liability can be complex and stressful. It’s crucial to seek professional advice to navigate these challenges. A foreclosure attorney can guide you through the process, help you understand your rights and obligations, and work to protect your interests. If you’re facing a situation involving foreclosure or potential debt liability, don’t hesitate to consult with a qualified attorney.
It is an unfortunate reality that many individuals have had to go into foreclosure as a result of the economic downturn. Some people have been successful at paying down their mortgage by renting out extra rooms to increase cashflow. However, sometimes it is not enough and the property still goes into foreclosure. However, this creates a complex scenario where you and your tenants may have different rights going forward.
Much of the difference comes down to whether or not your tenants are “bona fide.” According to federal law, tenants are bona fide if they are not part of the immediate family of the owner/landlord, the lease was executed as an “arm’s length transaction, and they are paying a fair market rate to live there. If the tenants are not bona fide, they are not protected under the Protecting Tenants at Foreclosure act and will need to vacate the property within 60 days after receiving notice from the new owner. Bona fide tenants must vacate within 90 days after notice from the new owner.
As the previous owner/landlord, your rights are different. After the foreclosure, you may be served with a Writ of Possession that gives you 24 hours to vacate the property. The new owners may be interested in having you lease the property from them, allowing you to stay longer.
As you can see, these situations can be extraordinarily complex, so it would be beneficial for you to work with an experienced attorney that can file the necessary forms and fight for your rights and interests.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
The current real estate climate, with owners becoming tenants and banks becoming landlords, can be rife with complicated situations and shifting loyalties. It can be extremely difficult to find out what your rights are. If you were leasing a property that was subsequently foreclosed, your obligations as a tenant should have shifted to the new owner. That is, you would pay rent and fees per your original lease agreement to them.
Additionally, any security deposits you paid to the original owner should have shifted to the new owner as well. As the new holders of the security deposit, it is their responsibility to hang onto until the landlord/tenant relationship has ended and return the deposit to you, minus any documented expenses for repair, unpaid rent, etc.
If your original landlord did not transfer the security deposit to the new owners during foreclosure, your only recourse is small claims court, unfortunately. Make sure to stay in touch with your landlord and the prospective new owners during the foreclosure process to make sure that the transfer is going smoothly.
As you can see, leasing a property that has been foreclosed can be a very complicated situation and it is possible for tenants to be taken advantage of. In order to protect your rights and ensure you get the best treatment possible, consult with an experienced attorney. Only a knowledgeable real estate lawyer can help you make sense of the complex laws, regulations, and forms that govern the real estate industry. Contact one today to learn about your rights.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
