What is Foreclosure Litigation in Miami?
Foreclosure takes place when a homeowner falls behind on their mortgage payments. Banks and loan companies rely on these procedures to sell the home in order to repay the debt.
Foreclosure litigation will proceed differently based on jurisdictions. For example, in some areas, banks must file a lawsuit in order to foreclose. This is what we call judicial foreclosure. In others, a loan owner may pursue foreclosure litigation without going to court.
In judicial foreclosure, banks must file lawsuits in order to initiate the foreclosure. This procedure typically takes several months up to a year. The good news for the foreclosed homeowner is that this often provides enough time to look for another residence. They can also save some money for the future.
An additional advantage this offers is that they can also raise any defenses to foreclosure without needing to file a counter lawsuit. Read on to learn more about foreclosure litigation in Miami from the Law Offices of Paul A. Humbert, P.L.
How Does Foreclosure Litigation in Miami Proceed?
The first step in any foreclosure situation is a homeowner gets behind on their mortgage payments. Nevertheless, the bank must wait over 120 days of delinquency in payments before beginning the foreclosure process.
The loan owner will then distribute a letter notifying the homeowner of their intent to begin foreclosure litigation in Miami. This is called a breach letter. The letter additionally outlines information regarding the foreclosure, including that litigation may begin without making up the missed payments, in addition to costs and interest.
After sending the letter, the lender will file a lawsuit if the homeowner doesn’t or cannot make up their missed payments. This is where the bank or loan company takes them to court for the right to sell the home as well as apply any proceeds from the sale to the outstanding debt.
Unless the debtor and lender can agree on a cure for the default on the loan note, homeowners remain unlikely to stop the foreclosure process. However, the courts do allow for action in contest of the foreclosure.
This involves filing a counter lawsuit with the court in the county where the property is located. The action will allege and outline the basis for stopping foreclosure. This could represent violations of any foreclosure or lending laws.
The lawsuit must additionally request a temporary injunction to stop the foreclosure process during the pending lawsuit. A court can then set a hearing regarding the viability and potentiality to cease foreclosure.
Meeting with a Foreclosure Litigation Attorney
Foreclosure lawsuits cannot be filed until the debtor demonstrates delinquency for at least 120 days. Until then, a lender may only issue breach letters and contact the borrower directly.
During this time period, debtors would remain wise to discuss potential loss mitigation options issues with their lenders. This could include methods like loan modifications, as well as a short sale. Nevertheless, consulting with an attorney that remains well-versed in foreclosure litigation in Miami is ideal during this and all subsequent phases.
When a creditor accepts a foreclosure litigation alternative, they may cease this process at any step. This is why a consultation with a legal professional is advisable for anyone seeking to avoid foreclosure on their record.
Alternatives additionally do not always represent the best possible result. Exploring these options with the assistance of a lawyer is always beneficial. Nonetheless, an attorney can guide a homeowner through this procedure while additionally representing their best interests throughout the foreclosure litigation case.
Information on Foreclosure Litigation in Miami from the Law Offices of Paul A. Humbert, P.L.
For plaintiffs and defendants alike in a foreclosure case, those pursuing and defending against foreclosure litigation in Miami should comprehensively understand these issues. Speaking with a foreclosure attorney is the preeminent option to work towards alternatives and avoidance of foreclosure.
The Law Offices of Paul A. Humbert, P.L. displays the commitment to helping individuals in the South Florida community that remain a party to foreclosure proceedings. Our attorneys are compassionate towards the difficulties that lenders and debtors alike may face.
The firm possesses experience working with lenders and debtors on agreements, loan modifications, pre-foreclosure proceedings, as well as post-foreclosure counseling, strategizing, and negotiation.
To learn more about our staff and the legal assistance we can provide regarding foreclosure litigation, contact the dedicated, experienced, and caring staff from the Law Offices of Paul A. Humbert, P.L. today to schedule a consultation!
- “What Is Judicial Foreclosure? | AllLaw.” https://www.alllaw.com/articles/nolo/foreclosure/judicial-foreclosure.html. Accessed 31 Jan. 2020.
- “D2-2-06: Sending a Breach or Acceleration … – Fannie Mae.” 11 Dec. 2019, https://www.fanniemae.com/content/guide/servicing/d2/2/06.html. Accessed 31 Jan. 2020.