Wednesday, August 19, 2009

An overview of Pre-Foreclosure/Foreclosure

In 2007 Florida had 11,000 foreclosure filings, 26,000 in 2008 and 2009 they are estimating 40,000 foreclosure filings.

Pre-Foreclosure: The lender has not filed a lawsuit yet but you may have received some letters from the mortgage company asking you to bring your mortgage up to date. You may be 3-4 months behind at this point. CALL your lender NOW! Do not wait. Discuss options relating to the Making Home Affordable Program and/or Loan Modification. Please be patient when you call.  There are a lot of homeowners in the same situation. If you do not get the answer you are looking for, call back and insist on speaking with someone else or even a supervisor.
You can also contact a HUD Counselor at 1-888-995-4673 or visit

Foreclosure:  You have received a summons/complaint from the Lenders Attorney. IMPORTANT: You MUST respond in WRITING to the Clerk of the Court along with the Attorney within 20 days after receiving the summons. In this letter you need to tell them WHY you should not be foreclosed on: Loss of job, reduction of income,  serious illness, death in the family, etc., keep it short and simple (1 to 2 pages).  NOTE: If you are in Orange County, Florida when preparing your letter be sure to ask for the MEDIATION PROGRAM (if requested the banks representative must sit down with you to discuss your loan. The bank is not required to come to an agreement but you have the opportunity to speak to them before the final judgment is signed).
The next step will be a motion and hearing. It is recommended you attend the hearing (or if you have an attorney he/she would attend). The hearing will last about 5 minutes. This will give you an opportunity to stand in front of the judge and explain why you do not want the foreclosure to occur or need a delay (waiting for a short sale to be approved, or working on a loan modification, etc). Remember if you are in Orange County, FL remind the judge you requested the Mediation Program.

Once the foreclosure is completed and the bank successfully sells the property,  the bank may issue a deficiency judgment. Which would be the the difference between your original loan balance and what they sell it for.

We have some helpful links on our website as well.