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Walking Away From a Foreclosure - Reyes Law Group

Walking Away From a Foreclosure

Walking Away From a Foreclosure – The Single Worst Decision a Homeowner Can Make!

For years homeowners long assumed that if a lender was seeking to foreclose, … they owed the money and as such, had no defense.  Yet, as terrible as it is to lose a house to foreclosure, 6 years into the foreclosure meltdown, many still think the easy route is to put their biggest financial headache behind them by just “walking away” from a foreclosure. As experienced parties now know… Wrong!  Even in today’s “rocket-docket” environment, “turning over the keys”, “walking away from a foreclosure”, or delivering a “deed in lieu of foreclosure” seems to be a formula for years of financial headaches.  And the worst part – it is “self-inflicted”!

There are countless real-life stories across the national mortgage foreclosure “landscape” of people simply walking away from a foreclosure, only to be shocked later as a lender pursues and obtains a “deficiency judgment” against them – in many cases years later!  (Lenders obtain “deficiency judgments” for the difference between what the borrower owed and what the bank sold the property for at auction.)  Now in Florida – after last July 1, 2013 when the state adopted the latest revisions to the state foreclosure laws – lenders have 1-year window within which to pursue a deficiency judgment.  And pursue they will.

Once obtained, these judgments are ticking, financial “time bombs” that can explode years after borrowers lose their homes by walking away from a foreclosure.  Despite what some say, in Florida, lenders now have 1 year to file and/or pursue a deficiency judgment against you.  And once in hand, they have 20 years to collect that judgment, with interest.  By filing a certified copy of that deficiency judgment, lenders may look to collect from other “non-homestead” properties, wages, and other assets you own.  And since many lenders will often discount and sell these judgments to collection agencies, you can be assured of continuing collection efforts for years.

Walking away from a foreclosure is the single worst decision a homeowner can make! The logical and prudent strategy is to consult with a law firm that focuses on mortgage foreclosure defense and seek to defend and preserve your rights using the legal system.  In a substantial portion of residential mortgage foreclosures, the homeowner has a valid defense to at least part of the claim.  Either the homeowner is not in default at all, or the extent of the default is significantly less than claimed, or the mortgage is subject to attack.  Besides, the financial debacle created by the lending industry over the last decade has made it more difficult than ever for banks to “prove their case”.  “Walking away from a foreclosure” is never a “good decision” – short or long term.  Once you understand that, you realize that defending against the lawsuit may serve to help you re-gain negotiating leverage that allows for a logical resolution in the case.  This resolution generally taking the form of a settlement that results in a loan modification you can afford or a short-sale that includes a waiver of any deficiency claim so you can move on with your financial life!

The Reyes Law Group helps people aggressively litigate their case, negotiate their loan modification, and/or short-sale transaction because in the end, YOU too deserve a passionate voice to help you fight to defend your property and/or 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 Litigation, Real Estate Litigation, Residential Purchase & Sales, Commercial Acquisitions & Sales, Residential Landlord-Tenant Litigation, Commercial Landlord-Tenant Litigation, Short Sales Negotiations, Loan Modifications, Criminal Defense, Civil Rights Claims, Family Law, Corporate Work, and Labor & Employment Law.

Call us for a FREE consultation at (954) 369-1993 or toll free at (800) 528-7720. Se Habla Español.

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

We are located at 2924 Davie Rd, #102, Davie, FL 33314.

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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.

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Written by Reyes Law Group