Matt Weidner – Fighting For The American People

Archive for July, 2009

During the first half of 2009 realtors and consumers were bombarded with advice that purchasing a property in a short sale transaction from the lenders was a quick way to acquire property at a dramatic discount.  Realtors in particular were treated to one seminar or help book after another which promised to teach them all the secrets they need to know in order to make big money in these transactions.

The volume of these pitches and solicitations has certainly died down over the last several months as nearly everyone involved in the industry has come to realize that short sales are incredibly time consuming and frustrating and more often than not, they don’t get closed.  The reason these deals don’t get closed are because the lenders holding mortgages on properties are unable or unwilling to accept short sale offers that result in losses and it takes too much time to coordinate the payoffs and releases from the lenders, brokers and homeowner.  As the weeks go by with no firm answers, buyers lose patience and walk away from the transaction.

A far more efficient way to purchase properties that were subject to foreclosure is to wait until the foreclosure has been completed then contract directly with the lender who obtained the property at the foreclosure sale.  Records obtained from the Pinellas County Clerk of Court indicate that there were 417 foreclosure sales scheduled in Pinellas County during the period June 1 to July 1, 2009.  Some of these sales might have been canceled for one reason or another, but for most sales that did occur, the banks obtained title to the property at the conclusion of the sale.

When banks are taking back hundreds of properties a month, its far easier to negotiate sales on the bank owned properties than to deal with all the hassles and frustrations of short sale transactions.

While the country is sitting smack dab in the middle of a long term recession and while you may personally be experiencing foreclosure, job loss and other economic pain, it may be difficult to focus on the bright side and the potentially life changing up side to this short term financial crunch.  I’m here to tell you that there is a potential bright side to all this turmoil that could dramatically affect your quality of life forever.

Over the last several years, we were all living far beyond our means. We were accumulating far too many things and were spending way too much money as a percentage of income.  Cars were always new, houses were bigger and constantly being upgraded and we were constantly treating ourselves to way too many luxuries.  Because income growth didn’t increase over this period to pay for the dramatic increase in spending, all this spending was financed with debt.  Borrowing and use of all types of credit surged, but the largest source of funding for the out of control spending orgy Americans engaged in was refinancing their homes.

The sales pitches from mortgage brokers and lenders was compelling, “consolidate your high interest credit cards into one manageable payment”.  The moment those high interest credit cards were paid off, the credit card backed spending started all over again (no need to worry though, we’ll just refinance this new round of debt away).  Now the music in this massive game of refinancing musical chairs has stopped and Americans find themselves stuck in a home burdened with far too much debt relative to the value of the home.

The end result for many homeowners will be foreclosure and for some bankruptcy.  Where’s the silver lining and what  is the potential good news?  The reality is that most lenders are either unable or unwilling to aggressively pursue foreclosure cases against homeowners.  If a foreclosure case is properly responded to by an experienced foreclosure defense attorney a homeowner can find themselves living in a home for a year or more after the case is filed.

While there are a significant number of long term negative consequences from foreclosure, most homeowners are relieved to find out they can be walk away from their mortgage obligations and get out from under the massive debt they’ve been laboring to pay for years.  The end result will be a far more enjoyable life uncomplicated by the stress and anxiety caused by trying to pay the debt service on a lifestyle that was unrealistic from the outset.

If you have recently been served with a foreclosure case or know that your lender is about to file a foreclosure case against you, you undoubtedly have many questions about what will happen to you, your family and your home.  As an attorney who has been practicing foreclosure defense, mortgage modification, civil litigation and real estate law in the St. Petersburg area since 1999, I have many years of experience which I am happy to share with you.

If you do not hire an attorney immediately after you are served with foreclosure, the lender could set a foreclosure sale of your home in as little as 20 days after you were served, with the sale of your home on the courthouse steps occurring as soon as 30 days later.  This is obviously a stressful and scary prospect for a homeowner and family, but if you hire an attorney, the bank may be unable to set a foreclosure sale for a very long time, if ever.

I say the mortgage company may never be able to set a foreclosure sale because the reality is foreclosure cases are very difficult for lenders to win in the current environment and the lenders are often forced or agree to modify your loan rather than take the risk of losing their case.

If you have questions, please take the opportunity to contact my office at 727-894-3159 for a free no-obligation consultation regarding your case.

According to information obtained from the Pinellas County Clerk of Court, a total of 1374 foreclosures were filed in Pinellas County from June 1, 2009 to July 1, 2009.  This staggeringly large number of filings represents a crisis that everyone in Saint Petersburg, Tampa, Gulfport, Tierra Verde and the surrounding communities in Pinellas and Hillsborough County must contend with.

Although firm numbers are difficult to come by it is estimated that more than 80% of homeowners served with foreclosure will not retain an attorney or otherwise defend themselves in foreclosure.  Every consumer should hire an attorney who is experienced in foreclosure defense, mortgage modification and general civil litigation to help ensure their rights are protected.

I urge all consumers to aggressively contact their lenders to try and obtain a mortgage modification prior to being served with foreclosure, but the unfortunate reality is that modifications are difficult and very time consuming to obtain.   Many consumers receive a mortgage modification package from their lender just before or shortly after they have been served with the foreclosure complaint and are lulled into a false sense of security thinking that the receipt of the mortgage modification package means they do not have to respond to the foreclosure complaint that was served on them.

The unfortunate thing is that even if the lender agrees to a short term modification, the foreclosure case may continue and a foreclosure sale could be set and held shortly after the short term modification period ends.  Remember you have only twenty days from the date of receipt of a foreclosure complaint to find an experienced attorney who will file an Answer to the complaint and protect your interests.

The good news for consumers is that an experienced foreclosure defense attorney may be able to raise a wide variety of claims and defenses that will at the very least delay the foreclosure process and could lead to a renegotiation of the mortgage on terms that are more favorable to the homeowner.

When a homeowner is facing foreclosure considering filing for bankruptcy may be the homeowner’s first response to the crisis.  While bankruptcy is a powerful tool that can provide many benefits to a homeowner, filing bankruptcy at the mere filing of a foreclosure case is likely not the best response to the problem.

An experienced foreclosure defense attorney can likely provide the consumer with a substantial amount of relief from the foreclosure case and may be able to assist the homeowner in obtaining a mortgage modification.  The legitimate threat that the homeowner will be forced to file bankruptcy if the lender pushes the foreclosure case if oftentimes enough to convince the lender to consider mortgage modification options they would not otherwise be willing to consider.

Because bankruptcy is a highly specialized and evolving field, I work closely with the attorneys at the Berkowitz Law Group counseling my clients in conjuction with their attorneys and preparing them for a proper bankruptcy filing if this becomes necessary.  I encourage those interested in bankruptcy to visit the Berkowitz Law Group Website at http://www.berkowitzlawgroup.com/ for more information.

Just last weekend, I received a somber call from an ICU nurse at a local hospital.  A long term client had been involved in an accident and was in a coma.  The client designated me as her power of attorney and health care surrogate and the physicians sought my guidance on my client’s wishes.  After that first call, I spent a great deal of time making contact with my client’s family, speaking with her doctors and generally taking care of her affairs.  Because her family was out of town, having a trusted professional appointed to act on her behalf relieved a great deal of stress and pressure the family was facing.

Interestingly, the most critical tasks I was called on to perform was helping make sure her three dogs were cared for.  Shortly after her accident, her beloved pets were taken into custody by Animal Control.  My office was informed that shortly they would be placed out for adoption or worse.  Animal Control would not release any information about the animals to my client’s friends or family, but they quickly responded to my requests and we were granted custody of the pets.

Over the years, some of the most frustrating things the family and friends of someone in distress have had to deal with could have been eliminated immediately had the person executed a living will.  Banks, insurance companies, power and cable companies, employers.  All of these businesses are very reluctant to share information with anyone for fear of legal action being taken against them.  The simplest task, like keeping the power on, can turn into a days long affair because no one will provide you with information about an account if you are not authorized or do not have a power of attorney.

The good news about the story I shared is that by an absolute miracle, my client pulled through and is recovering remarkably.  Her greatest joy was knowing that her beloved pets were waiting for her…but that might not have been the case had she not taken the time to properly execute a power of attorney and health care surrogate document.  For more information on drafting these, and other important documents, visit my website at www.mattweidnerlaw.com.