If a lender starts foreclosure proceedings a defendant often assumes that they have no real defense in the case. However, in the better part of the last decade, shady sub-prime mortgage contracts have been multiplying to record numbers. Many of these high-interest mortgages were created and approved by fudging income numbers and hiding abusive fees within the mortgage contract. Fortunately for many homeowners in a foreclosure crisis, these direct violations of the law can come back to haunt the banks that created the mortgage contract. By having a forensic document audit performed on a mortgage contract homeowners can sift out any violations found in their mortgage contract and use these as great leverage when both negotiating and defending a foreclosure.
Depending on your situation, your lender may agree to let you repay your missed payments and avoid foreclosure with a Mortgage Forbearance Agreement. These special repayment plans are called “Special Mortgage Forbearance Agreements”. A special mortgage forbearance agreement is a written repayment agreement between a lender and a mortgagor that contains a plan to reinstate a foreclosure loan.
The forbearance agreement is typically an agreement to postpone, reduce, or suspend payment due on a loan for a limited and specific time period. Interest that accrues during the forbearance remains the debtor’s responsibility. When the forbearance expires the unpaid interest are added to the principal balance of the loan. A forbearance request must be approved by the lender.
Typically, the lender agrees not to foreclose on the property or accelerate payments due on the loan during the forbearance period. In exchange, the debtor agrees not to contest any actions taken by the creditor to collect the debt in the event that the debtor fails to make scheduled payments or live up to other terms of the forbearance agreement. In some forbearance agreements, the debtor may grant the creditor a deed in lieu of foreclosure if the terms of the forbearance agreement are not met. If you qualify for a Special Mortgage Forbearance agreement, you may be allowed to postpone monthly mortgage payments. While there is no limit on the maximum number of months of a mortgage forbearance agreement, at no time may the agreement allow the delinquency to exceed the equivalent of 12 monthly payments.
Understanding your options enable you to make informed decisions and work to correct the problems that are causing you to fall behind with your payments. The lenders are going to do what’s in their best interest. They may not want to foreclose on your home, but you may be able to show them a forbearance agreement is in their best interest based on your situation.
You do not have to do this alone we have attorneys that will work with the lender for you. This is a complicated and time-consuming matter. Loss mitigation department of banks take little or no time to work with you to understand the process. You have to be aggressive and persistent, staying in touch with the lender. You need an experience skilled negotiator working to get the best possible agreement.
The foreclosure laws in Florida are changing almost daily. Not everyone will qualify for a forbearance agreement which is why it’s important to consult with qualified loss mitigation professionals. Remember, banks are going to do what’s in their best interest, not yours! Naples attorneys, Marc L. Shapiro, P.A. can help put a package together that helps banks understand why it’s in their best interest to accept a forbearance agreement. Please don’t hesitate to contact us to discuss your property situation.