Someone just knocked on your door, and served you with paperwork stating the lender is foreclosing on your Florida home. This is the second of seven parts on what you should do if a foreclosure lawsuit is filed against you.
I've seen examples of people who wanted to keep their homes pack what they could and take off, causing a terrible mess for both them and the lender. Whether you want to keep the home or get it sold to avoid foreclosure, you need to know that the game is not over. BUT you need to step up to the plate and help yourself.
The good news is, the game has changed. You were dealing with your lender's collections department in the first couple months of missed payments. They will say just about anything to get you to pay, and to make you feel bad about not paying. Now, you will be dealing with loss mitigation, and their job is to try to find better solutions to foreclosure.
1. Realize that you still have time, and that many people are going through this.
2. If you feel you need legal advice, seek it. Once you are served with the paperwork in Florida, you will be given about 20 calendar days to respond to the court about the legal complaint. If you do not respond, you are tying both hands behind your back if you or an attorney try to stage a legal defense later. A good attorney can question the contents of the complaint and, at a minimum, draw the process out longer to allow you a better chance to either get things worked out with your lender, or get the property sold.
I see a lot of this paperwork, and some of the items in lawsuits can be comical. I've seen some where the lender admitted it has lost all the paperwork that the borrower signed! This may not get you a free home, but a good attorney can jump in there and make it difficult for the lender to get from complaint to foreclosure. I've seen articles where good lawyers have drawn this process out for years.
The bad news is, you might not have the cash to get an attorney interested in the case if you are in a tough spot. Bankruptcy is an option, but no one needs to go there unless absolutely necessary. Jumping to bankruptcy is a decision no one should take lightly.
If you choose not to seek legal advice, at least put the court on notice that you want to stay in the home and would like to work something out with your lender to do so. Or, if you want to stay in the home, ask for as much time as possible to work to get the home sold to avoid the foreclosure.
Scott Gregory has dozens of closed and pending short sales in the Pensacola area, and more than 80 hours of specialized training on short sale negotiation and loss mitigation issues. He has spoken with hundreds of homeowners in an effort to help them avoid foreclosure, and he has shared his knowledge and experience with thousands of real-estate agents via conference calls. Gregory was the Top Producer for the 160-agent Keller Williams Realty Pensacola marketplace in 2007. He does business in all of Northwest Florida, including Navarre, Gulf Breeze, Pensacola, Mary Esther, Destin, Ft. Walton, Milton, Cantonment and Pace. He can assist any homeowners in Florida, and co-lists short sales with agents at his company and other companies. He is a certified short sales and REO specialist with Harris Real Estate University, and holds a degree in communications from University of Illinois Urbana-Champaign.
This is not intended to be legal or tax advice. If you need legal or tax advice, please seek the assistance of a professional in those areas.
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