Frequently Asked Questions
Foreclosure Defense and Strategic Defaults
Can I walk away from my mortgage?
Many Sarasota and Manatee County homeowners feel trapped in their home because they now owe more on their mortgage than their house is worth. Some families have resorted to spending their life savings or exhausting their retirement accounts in order to keep up with their mortgage payments. For most homeowners who are underwater on their home loans, it is no longer in their best interest to continue paying on the mortgage. Walking away from a mortgage is called a "Strategic Default." If not done correctly, property owners who engage in a strategic default can end up not only losing the property, but also being held liable for substantial additional money to the lender. Homeowners considering a strategic default should consult with an experienced strategic default attorney.
How long do I have to answer a foreclosure lawsuit (summons and complaint)?
Homeowners in the Sarasota and Manatee have only 20 days in which to file a response to a foreclosure lawsuit. After that 20-day period, your options may become very limited. We strongly recommend that you take immediate action to retain an experienced foreclosure defense attorney if you have been served with a foreclosure lawsuit. If you wait too long, you can severely damage your legal rights.
What is a "deed in lieu of foreclosure"?
A deed in lieu of foreclosure is an agreement that a borrower makes with their lender that involves the borrower turning over the title of their property to the lender. The lender effectively owns the property at that point, and the borrower can avoid foreclosure proceedings as a result.
What is a deficiency judgment?
A lender can pursue a deficiency judgment against a borrower when the proceeds of a foreclosure sale are not enough to satisfy the amount left over on the borrower's mortgage. The lender usually has up to five years after the foreclosure to seek a deficiency judgment. However, The Forrest La Firm is often able to negotiate settlements that enable our clients to escape liability for deficiency judgments.
What is a strategic default?
When a homeowner decides to stop making their mortgage payments, they are effectively "walking away" from their mortgage: this is called a strategic default. Strategic defaults are usually employed when the person's home is worth less than the balance of their mortgage, or when the person is no longer able to afford their monthly mortgage payments. It often makes better financial sense in the long run to escape from an underwater mortgage by engaging in a carefully planned strategic mortgage default.
What is a demand or acceleration letter?
A demand or acceleration letter is sent by a lender to a homeowner when that homeowner goes into default on their mortgage. The lender must send this letter before they are able to proceed with a foreclosure lawsuit for the entire amount of the loan.
Are there alternatives to foreclosure available?
There are a number of foreclosure alternatives available to homeowners, including short sales, deed in lieu of foreclosure, and mortgage/loan modifications. However, many of these "alternatives" can place you a worse financial position than when you started. An experienced attorney can assist you in evaluating your option and avoiding a potentially devastating mistake.
The Forrest Law Firm has developed sophisticated legal tools and strategies to assist our clients in foreclosure defense and strategic mortgage defaults including: The Forrest Law Firm Strategic Default Plan®, the Foreclosure Defense Plan®, the Fortress Asset Protection Plan®, and the Fortress Asset Protection Trust®.
About The Forrest Law Firm
The Forrest Law Firm is committed to aggressively representing the interests of property owners and homeowners in the following counties: Sarasota, Manatee, Hillsborough, Pinellas, Polk, Pasco, Orange, Seminole, Palm Beach, Miami-Dade, Broward, and other counties across the State of Florida.
If you want to walk away from your mortgage, or if you are facing foreclosure, contact the Forrest Law Firm today for your free telephone consultation!