The Lender Slowdown

Lender Slowdown = Greater Loan Modifications & Short-Sale Approvals

So you have been served with a mortgage foreclosure lawsuit (or think you will be soon), and you seem to read every day about mortgage foreclosures cases being “halted” and the ‘lender slowdown’.  Now you’re wondering “what does that mean for me”?  If you have been following any of my writings these last few months, I have been suggesting that simply “walking away”, delivering a “deed-in-lieu” of a foreclosure, or abandoning the property makes no sense.

Instead, I’ve asked:  How do you stop a foreclosure action?  Do you ask your lender for a loan modification and that does the trick?  Do you ask the lender to approve a short-sale deal?  My answer is a resounding “No!”  Instead, when you’re served a foreclosure action, the first thing you need to do is get yourself an attorney that specializes in defending against mortgage foreclosure lawsuits.  It has been proven that, “An attorney that specializes in this area can show you how implementing a legal defense “strategy” can serve to bring a lender ‘to the table’”.

What has come sooner than expected has been the “stoppage” or “lender slowdown” of cases by some major lenders as they have sought to review their foreclosure procedures.  (More surprisingly, acknowledgments of what many foreclosure defense lawyers have been saying for months: the “procedures and documents are faulty and/or fraudulent and violate the “due process rights” of property owners).  As a result, it is clear these foreclosure actions and/or judgments should not be allowed to proceed or remain in effect since the very foundation of each such case is tenuous at best.

The weight and impact of that argument has finally taken hold. Does a lender slowdown mean the end of foreclosures?  No.  What it does mean is we will be entering a phase where loan modifications and short-sales will finally take on a new meaningful role.  Lenders appear to be recognizing the risks of relying on faulty (possibly fraudulent) documents.  That recognition will now lay the groundwork for “real”, meaningful loan modifications and short-sale negotiations to take place.  I believe lenders will weigh in, carefully, gingerly, but dare I say “realistically”, to actually enter negotiations where “principal reduction” and “waiver of deficiencies” will be part of the conversation.

In this new environment of a lender slowdown, proficient and experienced negotiators will make the difference as you seek modifications that are long-lasting, and short-sales where you sell the property and need not endure years of fear over the possibility of being sued for the deficiency.

The Reyes Law Group motto we help our clients “defend your property, preserve your rights”.  As the foreclosure landscape shifts and lenders now appear more willing to negotiate in “good faith”, RLG can bring their expertise and passion to negotiating with lenders for a loan modification or short-sale approval.  I’ve said that real settlement talks at the right time can lead to a fair and reasonable outcome.  Today, more than ever, contacting a FORECLOSURE DEFENSE LAW FIRM who understands the process and the objective can help you aggressively litigate your case, negotiate your loan modification and/or successfully close your short-sale transaction.  In the end, you too deserve a passionate voice to help you 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  Melissa J. Ulloa 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 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: