Every foreclosure is different, and so is every bankruptcy. What you may or may not owe your foreclosure attorney will depend on the terms of your bankruptcy. Start by checking the contract or agreement you had with your foreclosure attorney. Then, contact your bankruptcy attorney for help. In most circumstances, you will not be responsible for any debts that were discharged during bankruptcy. That will include your foreclosure attorney fees if they apply.
Another important factor is whether a reaffirmation was included in the bankruptcy. If it wasn’t, you shouldn’t expect to pay attorney fees after you declare bankruptcy. When your mortgage debt was discharged, the costs associated with that debt should go away. Take a look at the judgment that was finalized in court during your filing. You should be able to access a list of the debts that were discharged as well as any that were reaffirmed. Make sure everything is correct and then use that judgment to notify your foreclosure attorney that you are not responsible for the outstanding debt.
Again, all bankruptcies are different and the circumstances of yours will dictate whether you are required to pay the fees your foreclosure attorney may be demanding. Talk to your bankruptcy lawyer and if you are being illegally pursued for collection of that debt, get the help you need to fight back. If you aren’t able to get anywhere with your bankruptcy attorney, get additional legal help before you pay a bill that isn’t clear and you might not owe.
Stephen K. Hachey, a Florida foreclosure attorney, can help your wade through this 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.
On March 22, 2013 Administrative Order 3.312 became effective. This order states that any cases filed more than three years ago were being set for mass trials. The purpose of this is to help move cases along and reduce foreclosure backlogs. However, it can also flood the market with foreclosure sales.
A non-jury trial in a Florida foreclosure means that you are just facing the judge and they decide if they are going to grant the foreclosure. It is best to attend these trials if you plan to fight for your home and they are known to be short trials.
Since they are trying to clear a bunch of cases at once, judges are trying to withhold from extending or cancelling a trial. If you have a trial date approaching and need more time to prepare a defense, get a loan modification, close a short sale, or move from the property, you may want to consider filing for bankruptcy. If you file for bankruptcy before the foreclosure trial you may be more likely to have your trial cancelled thus allowing you more time to explore your options.
Foreclosures can be hard to deal with so make sure you understand what the process entails and what is being asked of you. Remember, a non-jury trial in a Florida foreclosure case means that you will just be in the presence of the judge and they will decide whether or not to grant the foreclosure.
Stephen K. Hachey, a Florida real estate attorney, can help your wade through this 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 can be a lengthy, stressful process in which all sides stand to lose. Chances are your lender wants to work it out as much as you do; it is easier and cheaper to come to an amicable agreement then to have a drawn out slugfest play through the court system. But if you’ve been hit with a final notice of sale, it’s time to think outside the box.
In the ideal scenario, getting a loan modification (renegotiating the terms of your loan in order to achieve a lower, more affordable payment) is the best option for underwater homeowners. Still, attaining a loan modification on your own isn’t always easy or possible. A foreclosure prevention counseling service can help ensure your bank is reviewing the facts of your case fairly. These services are federally sponsored and completely free of charge, so be wary of any company promising to help you keep your home for a fee.
Delaying the sale
Filing lawsuit for a separate claim, such as force insurance, is not a viable postponement strategy as it will have no effect on the foreclosure proceedings. If your sale date is looming close, then it is time to seriously consider filing bankruptcy. Any type of bankruptcy will put an automatic stay on your foreclosure. However, unlike Chapter 7 bankruptcy, which would release you from liability for the mortgage debt, Chapter 13 bankruptcy affords you the opportunity to reorganize your debt into a manageable, affordable payment plan. In essence, a Chapter 13 not only halts the foreclosure sale, it can help you get the loan modification you need.
The most secure and effective way to ensure you’re being treated fairly and that you’re doing everything you can to come out a winner is to have proper legal representation. With the help of a capable attorney, a Chapter 13 bankruptcy filing can ultimately help you craft a reasonable deal with your lender. An experienced bankruptcy attorney can help you assess your unique financial position and explore the best options for your situation.
Stephen K. Hachey, a Florida real estate attorney can help your wade through this 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.
After a foreclosure, you may be surprised to find that the nightmare is far from over, but if your mortgage lender is unable to recover their entire loan balance after a foreclosure sale, you’re still very much along for the ride.
A deficiency occurs when a mortgage lending institution is unable to cover its investment with the proceeds from the sale of a foreclosed home. In the state of Florida, your lender can file suit against you in order to collect the difference. If you paid for private mortgage insurance (PMI), the insurance company will pay off the deficiency to the bank; but the PMI company has a right to hold you accountable and seek repayment. Don’t panic! Deficiency laws are complex and generally do not allow lenders or related parties to flippantly pursue borrowers to cover their losses once a foreclosure’s taken place.
Florida’s statute of limitations for deficiency judgments resulting from foreclosures on or after July 1, 2013 is one year, beginning the very day your home is sold in foreclosure and the new owner is issued a certificate of title. Nevertheless, sitting back and ignoring a deficiency may only make things worse and even result in garnished wages; so do consider your options! Deficiency judgments are unsecured debt, therefore filing chapter 7 (or chapter 13) bankruptcy can eliminate your personal liability to repay them. Before making any final decisions however, you should consult with a bankruptcy attorney to assess your unique financial situation and determine whether filing bankruptcy is the best course of action for you.
Stephen K. Hachey, a Florida real estate attorney, can help you navigate this process and make the most of a difficult situation. 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.
Though one can file a petition for relief under a number of chapters in the Bankruptcy Code, consumers most commonly file for liquidation under Chapter 7, which involves a court-appointed trustee collecting nonexempt assets from the petitioner or debtor in order to pay its creditors. Generally a trustee can in deed claim a security deposit in a bankruptcy, albeit with certain limitations.
A landlord, for example, may contest the courts for a tenant’s security deposit in order to cover unpaid rent or damages to the property as outlined in their lease. Therefore a trustee may not automatically compel a landlord to turn over or reimburse a security deposit to the bankruptcy estate. Similarly, a tenant may seek to be reimbursed for her security deposit in the event that their landlord has filed for bankruptcy.
Given a landlord’s interest in a security deposit, courts often rule in their favor as a trustee’s claim is limited to property that is incontestably property of the bankruptcy estate. Conversely, a tenant may find recovering their security deposit more trouble than it’s worth as security deposits are dischargeable debt, which means that a landlord is not responsible for returning the security deposit once the bankruptcy petition’s been filed. Assuming estate assets exist, a tenant would be refunded by the trustee through the bankruptcy process. Unfortunately, many estates lack the assets to refund creditors, including a tenant’s security deposit.
Bankruptcies can be a complex, drawn-out, intimidating process for everyone involved; however, whether you are a tenant or a landlord, the best way to protect your interests is to be proactive and stay informed! For more facts on bankruptcy proceedings consult with your attorney. 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.
