I’ve received a late payment notice from my bank, but I am on time with my mortgage payments. Can they legally foreclose on my home?

To foreclose on a property under existing Florida law, a lending institution must show not only a borrower’s default, but that the foreclosure is warranted under Florida’s laws of equity. If your lending institution cannot do this, they cannot foreclose on your mortgage.

Lending agents will typically not start foreclosure proceedings until you, as a borrower, have gone 3 months without making a mortgage payment, and have therefore defaulted. The 3-month rule, however, is not hard and fast and will depend on the lender.

What is HAMP and how does it affect foreclosure in Florida?

The federal government has responded to the increase of foreclosure in South Florida and across the nation by developing the Home Affordable Modification Program (HAMP) as part of the Making Home Affordable initiative. HAMP is a loan modification program designed to help homeowners with making their mortgage payments affordable and avoid foreclosure in South Florida.

Eligibility for HAMP involves:

  • owning and occupying a 1-4 unit residence;
  • owing $729,750 or less on your home;
  • having financial circumstances making it difficult or impossible to make your mortgage payments;

HAMP Eligibility Guidelines (Part A)

If you are one the many Florida homeowners having trouble making your mortgage payments, you should consult with a South Florida attorney with experience in foreclosure law to discuss the Home Affordable Modification Program (HAMP). The goal of this program is to provide homeowners a possible alternative to foreclosure.

Eligibility Requirements to Apply for HAMP

You must meet certain criteria before you can apply for a HAMP loan modification.

Requirements include:

  • you must be the homeowner as well as the occupant of a 1- to 4-unit home;

Overview of the Foreclosure Process in Florida (Part A)

When a mortgagor, such as a bank or other lending institution, successfully forecloses on your property, that lender takes full ownership of the property. The process, however, cannot begin until you fail to make your mortgage payments.

In Florida, a lender must use the judicial foreclosure process to seize a property and the foreclosure process must take place under Florida’s equity laws. If you have been served with a foreclosure notice, you have 20 to 60 days to take action before the bank seizes your home.

Fighting Your Florida Foreclosure Action

Once you have been served with a Foreclosure Summons, your options as a defaulting borrower become severely limited. Available options to avoid a Florida foreclosure may be further decreased by your particular situation.

You can either accept the action and allow the lender to foreclose on your property, or you can fight the action using a foreclosure defense specific to your circumstances. Should you decide to fight the action, it would be in your best interest to contact an experienced Ft. Lauderdale foreclosure attorney who is knowledgeable with foreclosure laws.

Your options after receiving a Foreclosure Summons are essentially limited to:

Warning Signs of South Florida Foreclosure Scams

With the number of South Florida foreclosures rising, scam programs are multiplying. Many fraudulent organizations have been preying on the emotional distress many homeowners feel when facing foreclosure.

Keep your eyes open for the following warning signs when considering a mortgage loan modification or foreclosure assistance:

  • High up-front fees – although many legitimate foreclosure assistance companies do charge fees, they are small and not required until after they start your case. Be especially wary of companies that require high up-front fees and claim to be government-sponsored. Government programs are free.

Homeowner beware ! Make sure your mortgage modifier is licensed

South Florida Sun-Sentinel.com

More than 16,100 mortgage modification complaints filed in past six months

Mortgage modifiers must be licensed under new Florida law
State regulators cracking down, with 83 active investigations

Originally published By Diane C. Lade
South Florida Sun Sentinel
6:38 PM EDT, August 26, 2009

Hundreds of people calling themselves “foreclosure rescue specialists,” promising to quickly cut through red tape and reduce mortgage payments, have taken millions of dollars from South Florida homeowners over the past year for their services.

But unlike mortgage brokers or real-estate agents, mortgage modifiers are not required to have any special training or even a license — something many consumers don’t know.

Troubled mortgages hit record high

Troubled mortgages hit record high

More than 616,000 homeowners were hit with foreclosure actions in the first 3 months of the year, the Mortgage Bankers Association reports.

By Les Christie, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) — Despite all the hand-wringing and attempts to contain the foreclosure plague, the problem still spread during the first three months of 2009, as the number of foreclosure actions started hit a record high, according to a quarterly report.

Slow Start to U.S. Plan for Modifying Mortgages

May 14, 2009

Slow Start to U.S. Plan for Modifying Mortgages

 

 

The Obama administration’s plan to help millions of troubled homeowners avoid foreclosure by reducing the size of their mortgage payments is just getting off the ground.

So far, two months after the program went into effect, about 55,000 homeowners have been extended loan modification offers, according to a senior administration official. At the same time, foreclosures continue apace. RealtyTrac reported Wednesday that foreclosure filings reached 342,000 last month, up 32 percent from April 2008. Moody’s has estimated that more than 2.1 million homeowners will lose their homes this year.

U.S. to pay off mortgage investors

U.S. to pay off mortgage investors

Treasury Department announces new mortgage incentives for lenders, which will reduce monthly payments for millions of borrowers.

WASHINGTON (Reuters) — The U.S. Treasury Department will Tuesday tap a $50 billion housing rescue fund to pay off mortgage investors and reduce monthly payments for millions of borrowers, said a senior administration official.

Mortgage servicers that own a small stake in costly loans will receive a cash payment to either erase the debt or agree to accept a reduced return on their investment.

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