If your property was recently foreclosed, you may be wondering what’s next and what your rights are going forward. For homeowners who’ve been foreclosed, there may still be a few options left on the table. Here are some things to consider if your home has just sold at foreclosure:
Contesting the sale
Per Florida statute, homeowners are able to redeem (pay the past-due balance in full or reach an agreement with the lender) at any time prior to the foreclosure sale. Unfortunately, reclaiming your home is generally next to impossible once the foreclosure is final, as the court issues a Certificate of Sale and the redemption period ends.
Once the sale is final, homeowners have ten business days to contest the foreclosure on a legal basis. Having an experienced attorney can help you determine whether or not you have a valid complaint. Your attorney may, for example, file a complaint if the bank or the courts failed to give you proper notification of the foreclosure sale. After ten days however, if you have not contested the matter, the court issues a Certificate of Title to the new owner.
What happens after the court issues a Certificate of Title?
Once the new owner receives title to the property he is then able to legally begin the eviction process. However, this does not mean you must vacate immediately. The new owner of the property is not allowed, under any circumstances, without express consent from the courts or without a Sheriff present to forcefully remove you or your property from the premises. Technically, you are not required to leave until the buyer or the bank (whoever purchased the property at sale) serves you with proper notice of eviction.
What’s next?
Once the buyer receives title you automatically become tenant. In most cases, the bank or new owner may offer you a deal, such as Cash-for-Keys, in order to avoid hefty fees and a clunky eviction process through the court system. This can be a positive outcome that can help you move on. Staying informed and seeking the help of a knowledgeable real estate attorney can get you the outcome you deserve and ensure that your rights are being protected.
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.
Updated: 6/2/23
Foreclosure is a difficult and protracted process which homeowners hope never to experience. For many, the end of foreclosure is only the beginning of a new nightmare. Many homeowners, for example, leave their homes during proceedings—perhaps on a business trip or to visit family—only to return and find that the foreclosure is complete and they’ve been locked out of their homes.
Understanding Foreclosure and Its Aftermath
Foreclosure is a complex process that homeowners hope never to experience. Unfortunately, for many, the end of foreclosure marks the beginning of a new set of challenges. It’s not uncommon for homeowners to leave their homes temporarily during proceedings, only to return and find that the foreclosure is complete and they’ve been locked out of their homes.
Legal Justifications for Lender Possession
While it may seem abrupt, lenders are often legally justified in taking possession of the home after foreclosure. However, they must follow a number of steps before they can bar homeowners from the premises. As a homeowner, it’s crucial to verify whether the bank has complied with standard procedure before walking away from your home or your belongings.
Key Documents in the Foreclosure Process
The foreclosure process involves several key documents. The property remains in your possession until the foreclosure action has been carried through to its conclusion. The title may not be transferred back to the lender until the property has sold and a Certificate of Sale has been issued.
Once the sale has taken place and all proceeds are collected, you have ten days before the Clerk of Circuit Court issues a Certificate of Title, stating that the property belongs to the new owner. Even after the bank has sold the property and obtained a certificate of title, in the state of Florida, the new owner must apply for a writ of possession.
Once the writ is granted, the Clerk issues it, and generally, a sheriff will notify you that you’ve been divested of the property and are expected to leave the premises within 24 hours.
Homeowner Rights and Lender Obligations
It’s important to note that your lender cannot kick you out of the premises before following these procedures. Be sure to double-check that all required paperwork has been filed and that you’ve received proper notification. As a homeowner, you have rights, and it’s essential to understand them.
Steps to Take If Locked Out
If you’ve been locked out of your home, it’s important to act promptly. Immediately contact an experienced foreclosure attorney and explain the particulars of your situation. Navigating the aftermath of foreclosure can be challenging, but with the right legal guidance, you can find a positive solution.
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.
Though navigating the ins and outs of real estate foreclosure isn’t always a simple matter, many homeowners often do successfully make it to the tranquil shores on the other side. The ultimate goal of a foreclosure defense is to avoid a final judgment. This means doing whatever possible to come to terms with your lender in order to halt the foreclosure and avoid having the property going to foreclosure sale. Here are a few examples of an effective foreclosure defense:
Loan Modification – The most common method of avoiding foreclosure is to renegotiate the terms of your loan in order to lower your monthly payments and remain in your home.
Short Sale – If a loan mod is not feasible, a short sale may be the next best thing. In a short sale, your lender agrees to allow you to sell the property for less than the mortgage debt.
Deed-in-Lieu – A deed-in-lieu allows you to convey all interest in the property back to your lender, satisfying the loan and allowing you to circumvent the ruinous effects a foreclosure can have on your credit.
Deficiency Waiver – When a property sells for less than the balance owed on the mortgage, the difference is a deficiency and you remain liable for that difference. If you do agree to a short sale or a deed-in-lieu, be sure to make the release of any deficiency part of the contract with your lender.
With a proactive attitude and the help of a professional, you can indeed come out of foreclosure proceedings with your head held high and healthy pockets. Lenders are often willing to work with underwater borrowers looking for alternatives; consult with an experienced foreclosure attorney and explore your options.
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.
If your property was recently foreclosed, you may be surprised to find that you may still owe money on the property and that the ordeal is far from over. When a mortgage lender is unable to recover the entire loan balance after a foreclosure sale, homeowners are often still held responsible for the difference.
Whether through a short sale or foreclosure, when a property sells for less than the balance owed on the mortgage, the difference is called a deficiency. Homeowners facing foreclosure in the state of Florida should know that lenders have the legal right to file suit in order to hold borrowers accountable and recover losses. This is what is referred to as a deficiency judgment.
Though there are cases in which lending institutions wrongfully pursue deficiencies, ignoring or not responding to a deficiency judgment may only make things worse and even result in the loss of assets and garnished wages. It’s important to contact your lender and explore your options; if you make any deals (short sale, deed-in-lieu, etc.) be sure to make the release of any deficiencies part of your contract. Additionally, if your home has already been foreclosed and you are now fighting to catch up with a deficiency, bear in mind that deficiency judgments are unsecured debt; bankruptcy can help eliminate your personal liability to repay them.
Deficiency laws are complex and generally do not allow lenders or related parties to flippantly harass borrowers once a foreclosure’s taken place. If you are on the line for a deficiency judgment, don’t lose another minute; reach out to a respected foreclosure assistance organization in your community, or consult with an attorney to help you determine the validity of the deficiency judgment and work out the best course of action for your unique 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.
Even if you’ve filed bankruptcy and moved out of your home, your name remains on the property title. Moreover, mortgage liens are generally not discharged in a chapter 13 bankruptcy. Unfortunately, you will remain the owner of record until your lender forecloses or you take the necessary steps to remove yourself from the title. A deed in lieu or a short sale is your best bet at eliminating your name from the title and avoiding significant damage to your credit in a bank foreclosure.
A deed in lieu allows you to convey all interest in the property back to your lender, satisfying the loan and allowing you to circumvent the catastrophic effects foreclosure proceedings can have on your credit report. In a short sale, the proceeds from the sale fall short of the balance owed. Like a deed in lieu, a short sale can help you avoid foreclosure and release you from the property lien. Neither option involves an additional expense and will give you an opportunity to regain some control over what happens next.
Though filing for bankruptcy will delay the foreclosure process, the bankruptcy proceedings do not pay off the mortgage nor does it offer protection from foreclosure. But while things may seem grim, the good news is your home hasn’t foreclosed yet. This gives you an opportunity to proactively seek approval from the trustee, pursue a short sale or deed in lieu and rid yourself of the property for good. Lenders are often willing to work with underwater borrowers looking for alternatives; consult with an experienced foreclosure attorney and explore your options.
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.
A lender files a 1099-C with the IRS when they release the debtor from liability or otherwise waive a borrower’s deficiency judgment. If you received a 1099-C from your mortgage company, then you should not owe a deficiency judgment on the corresponding debt. But when it comes to Florida foreclosures, things can get a bit convoluted as foreclosure actions are typically filed by the truckload, in a factory-like settings; an environment in which unfortunate blunders are easily made.
A 1099-C is most often seen in short sales or a deed in lieu of foreclosure—both are instances in which the lender typically cancels the balance remaining on the debt. In a short sale, for example, your lender agrees to settle the debt on the property for less than what they’re owed. However, debt relief (with few exceptions) is considered taxable income and must be reported to the IRS. Come tax season, your lender is allowed to write off your settlement as a loss, so once the short sale transaction is complete, your lender will send you a 1099-C affirming the amount written-off in the settlement. You would then report that amount as income when filing your tax return for the tax year in which that debt was settled. That should, for all intents and purposes, be the end of it.
In essence the 1099-C you received from your lender is an agreement which states your mortgage company will not pursue the remaining balance on your debt. If you have documentation stating your deficiency was waived, then you have a solid defense against collection efforts. It is very plausible that your lender simply made a mistake. Nevertheless it is important to take action and contact an experienced foreclosure attorney immediately in order to guarantee your interests are being protected.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
Going through the foreclosure process is an extremely stressful situation. Nevertheless, banks have a reputation of dragging the process out. How long is an “unreasonable” amount of time, according to the state of Florida? Unfortunately, a common belief is that many Florida courts are unkind to borrowers; courts are not out to help you in this situation. However, there are laws and procedures specifically designed to protect our civil rights, and knowing those laws will help in these kinds of situations.
Under Florida Rule of Civil Procedure 1.420 (e), if it’s been 10 months or more without any filings in a case, then the defendant can file a Notice of Intent to Dismiss. If there is nothing filed within 60 days of that, the defendant can file a Motion to Dismiss for lack of prosecution. At this point, it won’t be easy for the prosecution to overturn the motions. They must show “good cause” why the case should remain pending, and that isn’t easy to provide. If the case has come this far, it’s reasonable to believe that the plaintiff has either forgotten about the case or simply doesn’t consider it wise to continue spending money on the case.
The defendant should know how to protect themselves in this circumstance. As previously mentioned, there are civil rights for a reason. Nobody has the right to take civil rights away, and, as always, an attorney is certainly the best option in this case. In certain circumstances, attorneys can find out if the judgment can be retracted. Additionally, an attorney will likely be able to represent the needs of the defendant much more clearly than the defendant themselves.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
“Do I still owe HOA fees after my foreclosure sale?” It seems like owing fees after ownership has been transferred would be grossly unethical, if not illegal, but is this the case? The short answer is “yes”. However, this answer deserves a more detailed explanation.
HOA Fees and Foreclosure
Even after a foreclosure sale, the original homeowner may still be liable for unpaid HOA fees. This is because the obligation to pay these fees is tied to the property itself, not the individual homeowner. Therefore, any unpaid fees can become a lien on the property, which must be satisfied before the property can be sold.
Responsibility of the Lender and Third-Party Buyers
When a property is bought in a foreclosure sale, the responsibility for HOA fees can shift. If the property is bought by the lender, their responsibility is limited to 12 months of assessments or 1% of the original loan amount, whichever is less. However, if the property is purchased by a third party, that party becomes responsible for the full amount of the unpaid HOA fees. Furthermore, the third-party purchaser can seek reimbursement from the original homeowner for these fees.
Long-Term Implications of Unpaid HOA Fees
Unpaid HOA fees can have long-term implications for homeowners. In Florida, banks have up to 20 years to process a foreclosure finding. During this time, the original homeowner may still be responsible for HOA fees. This can add a significant financial burden to homeowners who are already dealing with the fallout from a foreclosure. Therefore, it’s crucial for homeowners to understand their obligations and to seek legal advice if they’re facing potential foreclosure.
Seeking Legal Advice
Dealing with HOA fees and foreclosure can be complex, and it’s crucial to seek professional advice. If you’re facing a situation involving potential foreclosure or unpaid HOA fees, consult with a real estate attorney or a bankruptcy attorney. They can help you understand your obligations 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 these complex issues.
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.
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.
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.
