There are so many foreclosures and so few attorneys who know how to defend on behalf of the homeowner. I have referred many clients facing foreclosure to an Orlando real estate and commercial litigation attorney named David Cohen. David has had good success defending foreclosures, which often results in giving his clients extra time to remain in their homes while they attempt to resolve the foreclosure case. David recently gave me an overview of his tactics and results fighting foreclosure suits on behalf of clients, many people who were either unable to make payments or who were faced with negative equity.
David Cohen explained that a foreclosure action is procedural in nature and that the bank is required to prove its claim. Often the banks’ attorneys are so overwhelmed it takes them months to address any defenses raised. Most homeowners do not answer foreclosure complaints, and foreclosure judgments are entered after default. Default foreclosure judgments are easy for the mortgage lender to process quickly.
Filing an answer or raising defenses requires the lender to turn the file over to legal staff for more involved litigation. In many cases, a defense attorney can find technical defects in the foreclosure suit or the original loan documents, some of which can even defeat the lender’s lawsuit. It is not uncommon for a well defended case to take more than six months and often as long as nine months after the complaint is filed and the homeowner is served with a summons to reach a conclusion. Often during this period, the banks are willing to negotiate a resolution to the case, which resolution may involve an agreement to waive any claim to a deficiency judgment.
Legal fees associated with foreclosure defense usually range between $1,500 and $3,500 over a four to nine month period. As the defense costs are generally substantially less than what a homeowner was paying as a monthly housing expense, it is usually a good decision to hire an attorney to defend a foreclosure action rather than allowing the bank to take a default.
Wow, an additional 5 to 6 months. Good to know!
Good Article. Most people do not realize that they can stop foreclosure even if they stopped paying their mortgage. Many recent cases have been filed improperly and an experienced attorney can assist with the identification and filing of substantive and procedural defenses with the court and vigorously defend your case. Due to the lender’s actions, omissions or other facts surrounding your case, you may be able to stop making mortgage payments and stay in your home while your attorney vigorously defends your property. This does not necessarily mean that you will not have to pay the loan back or completely Stop Foreclosure. It is possible to completely Stop Foreclosure if the bank or lender is in violation of the Florida Unfair Lending Act or other predatory lending practices. If the lender has committed such a violation, the entire principal and interest balance may be waived and the mortgage may be voided. This may not be relevant in your case. But, at the very least, a successful defense can do is buy you precious time to:
* Stay in your home
* Negotiate a work-out with the bank
* Sell your home for a fair price
* Refinance your home at a fair rate
* Continue to collect rent on the property
* Apply for a Court Ordered repayment plan
* File a Chapter 13 or 7 Bankruptcy
When home owners are faced with the reality of facing a potential foreclosure, many experience a state of paralysis. They don’t know what to do. Selling the home may not be an option since the equity appears to have vanished. To fight foreclosure or not? That is the question. Clouding the answer is perhaps the biggest misconception, “Hiring an attorney is not a cost-effective option.” If I can’t afford to pay my mortgage, then how in the world can I afford to hire a competent attorney? And why should I, if I am upside down in my home? First of all, EVERYONE can and should hire an attorney to represent them in their foreclosure case. There are many competent attorneys who specialize in this area. Due to the growing number of these cases, many attorneys have become “experts” in this area. Due to the fact that most of these cases are very similar, many excellent attorneys have experienced staff and can offer extremely affordable payment arrangements. Most people don’t know that once the foreclosure proceeding has started, the bank will not accept any future mortgage payments – doing so may adversely affect their ability to foreclose on your property. Furthermore, the bank pays any delinquent real estate taxes and the insurance on the property. In summation, once the bank files a foreclosure lawsuit, most of the homeowner’s expenses are being paid by the bank (mortgage, taxes and insurance). However, as the legal owner of the house with full possession, you have all the rights associated with same including residing in your home, collecting rents on the property, etc. Imagine the “EQUITY” you can save / build, if you fight the foreclosure case for a year or more. The cost of qualified legal representation is a drop in the bucket compared to your typical home ownership overhead. Time is money and the real estate and financial markets are likely to turn around. The hiring of the right attorney will save you thousands of actual dollars, in addition to thousands in time value of money. Its really a no-brainer.
Respectfully,
Frederick A Neustein
http://StopForeclosureLawyer.com
I’ve already submitted my initial response to the court and plaintiff re original foreclosure/summons i received, in which i only admitted to the complaint that the mortgage note and mortgage were in default. All other complaints i either denied or noted without knowledge, therefore denied.
The mortgage papaers i originally signed were with Wells Fargo, however their advisors have admitted/informed me via phone that they are just the servicing agent. The foreclosure papers lists ‘HSBC Bank’…as ‘trustee for Wells Fargo Asset Securities Corporation…’
Should note there are no papers in the original foreclosure notice/summons, or this 2nd foreclosure notice/summons that i’ve received that makes any reference to the assignment of mortgage note to HSBC bank. Both sets of papers/summons which i rec’d are the same & contain the identical papers.
My question is…doesn’t the plaintiff have to produce some sort of proof that my mortgage note was assigned to HSBC bank? Doesn’t the plaintiff have to prove HSBC holds the mortgage note on my home loan?
If this is true and they do in fact have to legally prove this or produce this note assigning my loan to HSBC Bank, then my question is exactly what statement should i make in my defense to respond to this 2nd complaint/summons that i have received?
My 2nd question is regarding mediation. If i choose to go thru mediation, is it absolutely necessary for me to have legal counsel during this process?
Any suggestions or recommendations would be helpful. Please be precise re. the specific wording of my defense. You can e-mail your reply to jdoris57@juno.com
Thank You.