Florida enacted a statewide moratorium on federally backed mortgage foreclosures (e.g., VA home loans, FHA, Freddie Mac and Fannie Mae loans) through July 31, 2020. It is doubtful that the moratorium will be renewed again, even if the significant rise in Covid 19 cases continues.
WHAT WILL HAPPEN WHEN THE MORATORIUM EXPIRES?
18% of people in South Florida have seen their incomes decimated because they lost their jobs or been furloughed. The State enacted a temporary moratorium to avoid mass evictions and foreclosures hoping that by July 31st, the economy would have bounced back. The State has reopened but especially in South Florida, it is slow and for every two steps forward, we are taking 1 step back. It will be some time before our economy starts to recover, but for many, it might be too late.
FORECLOSURE- HOW AND WHEN
Foreclosure is the process of a lender taking back real estate that is the security for the loan as a result of a default. The cause might be non-payment of the monthly mortgage, but may also be the result of failure to maintain insurance, pay taxes, and the like.
Generally, if you miss one or two months of mortgage payments you will get a call or notice from the servicer (manager) of the loan for the lender. At 3-4 months the servicer will send a “notice of acceleration”. This notice tells you that your entire loan balance will become immediately due unless you pay all outstanding loan payments (plus penalties) by a date certain.
If you fail to bring the payments current, you will be served with a foreclosure complaint and must respond within 20 days. Without a defense attorney involvement, you could be foreclosed within 3-4 months and your property sold to the lender or a third-party bidder 45 days thereafter.
DEFENDING THE FORECLOSURE – THE HOWS AND WHYS
As a result of the current economic crisis and business closures and bankruptcies, you may be unable to make mortgage payments despite the best intentions. The involvement of a competent attorney will buy you time by making the process more difficult for the lender.Read More