Even on the Brink of Trial …. A Solution is Possible

As readers of this BLOG know by now, The Reyes Law Group has been aggressively litigating foreclosure defense cases and serving as the passionate voice for homeowners and investors in court as we fight to defend your property and preserve your rights!  There’s no doubt the anxiety and stress of being sued and being involved in a legal case can feel overwhelming.  Yet, by now, millions know that “simple” loan modifications don’t exist.  Whether directly or through 3rd party facilitators, lenders simply are slow, confusing, unresponsive, and in some cases, non-existent!  And when it comes to short-sale approvals, the lack of timely “responses”, the demands for the “refreshing” or delivery of documents in unreasonable timeframes, and/or other unjustified “barriers” only serve to make the entire process frustrating and too many times, fruitless.  The fact is that despite the pronouncements in the newspapers about “approvals” increasing, loan modifications and short-sales are remain a frustrating challenge.  Not that you don’t go through the process to try and accomplish it, but rather as you do (whether directly or through a facilitator) you know the odds of receiving an approval remain difficult and you need to set proper expectations.  Not surprisingly, many of these homeowners or investor efforts are further disregarded by lenders who proceed to serve them with a lawsuit in the middle of the loan mod or short sale process!  When that happens, many feel the end has arrived!  But, like I have written before, being served with a lawsuit is not the end, but the beginning, … an opportunity to re-leverage the “un-level” playing field.

We are starting to see that successful foreclosure defense work, short of any early settlements in the form of loan mods and short-sales, eventually leads to trials (something that prior to the recent national meltdown was usually not the case.  Generally speaking, all these cases are resolved through “settlements”, hearings on motions for summary judgment, or finally, trials.)  Trials are the ultimate forum for forcing the bank to “prove their case”.  Recently, we were in court on a foreclosure case, on the verge of starting trial, literally in the courtroom in front of the judge, when the lender’s counsel turns to me and offers up, .. “You sure you don’t want to consider one more settlement offer?”  I turned to him and asked, “what are you offering?”  We asked the court for a few minutes, turned to the bank representative where over the next 45 minutes proceeded to negotiate a settlement that saw the clients mortgage balance reduced significantly, the interest rate dropped, and the monthly payment reduced (inclusive of taxes and insurance) to a level where now the property was cash-flowing and performing for the client (an investor with a tenant).  Talk about taking it to the brink!  Now this is not, and no lawyer can, promise any result, but rather this serves to make the point that in some cases, the willingness and courage to take it to the brink might serve to be your only chance to right an upside financial down situation!

What’s the moral of the story?  As I have written many times before, you’d be surprised how difficult it is for a lender to prove their case in this context.  For many of the reasons I’ve written about before, the bank themselves really hate seeing it go to trial, … because despite their advantages, the banking mess of the last 10 years has made proving their right to foreclose in court more difficult than ever.  And of course, it should be obvious, … who forces the bank to consider and reconsider whether to offer a settlement in court many times depends who’s across from them in that courtroom.  Yes!  Who the opposing counsel and law firm is DOES MATTER!  At the Reyes Law Group, we continue to grow and evolve bringing lawyers on board to assist clients meet legal needs in other areas.  But never forget, our foundation, our beginning, our focus and experience is grounded in real estate and in particular, foreclosure defense.  And that’s because we believe you too deserve a passionate voice to help you fight to defend your property and preserve your rights!

Carlos J. Reyes  is the Principal of Reyes Law Group. He has been a member of the Florida Bar since 1988 and practices state-wide.  Carlos has been awarded a rating of “AV Preeminent” which is the highest possible rating in both legal ability and ethical standards by Martindale-Hubbell – a well-recognized legal resource. The RLG Legal Team also include attorneys Stephan LopezMelissa J. UlloaPhillip A. Ortiz and the RLG Legal Support Team to bring you a dedicated, experienced and dynamic legal team to handle your legal needs.

We also assist clients in the areas of: Civil LitigationReal Estate LitigationResidential Purchase & SalesCommercial Acquisitions & SalesResidential Landlord-Tenant LitigationCommercial Landlord-Tenant LitigationShort Sales NegotiationsLoan ModificationsCriminal DefenseCivil Rights ClaimsFamily LawCorporate Work, and Labor & Employment Law.

Call us for a FREE consultation at (954) 369-1993  Se Habla Español.

Visit our firm website ReyesLegal.com and review our credentials.

We are located at 150 S Pine Island Rd #210, Plantation, FL 33324


The Reyes Law Group BLOG is intended to provide information to firm clients, friends and potential clients about various legal related topics. Nothing in this BLOG should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this BLOG without seeking the advice of legal counsel.

The hiring of a lawyer is an important decision that should not be based solely upon advertisement.  Before you decide, ask us to send you free information about our qualifications.

The following two tabs change content below.

Reyes Law Group

Reyes Law Group represents clients in a multi-disciplinary legal practice involving real estate transactions and litigation with a “footprint” that covers the State of Florida. Over the firm’s first 10 years, Reyes Law Group has closed over $100M in commercial closings, representing buyers and sellers in contract negotiations, due diligence, and the related title review and policy issuance related to closings. In litigation, the firm has commercial litigation experience focused on prosecuting or defending claims such as breach of contracts, partition actions, trade secret violations, and breach of non-competes. However, our firm’s MAIN FOCUS is assisting asset and loan portfolio managers, investors and private lenders with a “ 4-PILLAR APPROACH” to the legal challenges they face with non-performing assets: 1) LOAN WORKOUTS; 2) COMMERCIAL FORECLOSURES (across the State of Florida); 3) COMMERCIAL EVICTIONS; and 4) REO COMMERCIAL CLOSINGS.30+ years’ legal experience means - WE CAN HELP!

Latest posts by Reyes Law Group (see all)

%d bloggers like this: