A tenant-landlord relationship should be simple. The landlord provides a home for the tenant to live and the tenant pays a monthly rent. However, certain circumstances may require legal intervention, typically due to a tenant’s safety or if legal rights have been compromised. If you are involved in an unresolved dispute with your landlord, you may need to hire a seasoned real estate attorney to ensure your interests are protected.
You are Facing Evictionand Being Harassed.
If you fear an eviction notice is imminent, our real estate law firm can help defend the eviction and increase your chances of a successful outcome.
Certain defenses may apply to your case including:
The landlord did not adhere to the statutory procedures for eviction required by state and local law;
If the landlord attempted to lock you out, remove possessions, or cancel utilities;
The eviction was considered retaliatory;
The landlord is charging illegal fees & calling them rent;
You are being called names by your landlord, like ‘deadbeat’.
Know your rights. Call Own & Dunivan at (813) 502-6768 to handle your unresolved landlord disputes!
Your Landlord Refuses to Make Necessary Repairs.
A basic right of tenants is to live in habitable conditions. This includes complying with housing codes & standards.
Therefore, even if it is not clearly defined in your lease, your landlord is obligated to maintain the rental property in a livable state. This includes maintaining a structurally sound building, providing heat and water, and ensuring the plumbing and electric work properly.
If your landlord fails to live up to this obligation and make the necessary repairs, you have the right to withhold rent, pay less rent, or repair the issue yourself. Our attorneys are experienced in tenant-landlord law and will determine if state or local codes have been violated. Call Owen & Dunivan today to speak to a lawyer about the specifics of your case.
All areas of the landlord-tenant agreement are covered by this anti-discrimination law, which includes:
Standards for selecting tenants
The terms and conditions of the lease
Reasons for termination
If discriminatory conduct in any of these areas has occurred, you can file a complaint with the Department of Housing and Urban Development or a state or local agency in HUD’s Fair Housing Assistance Program. In addition, you can contact a skilled real estate attorney to advise you on how to stop the discriminatory conduct and how to recover compensation for damages.
Protecting Tenants Rights
With any landlord-tenant agreement, both sides should have a good understanding of their rights and responsibilities to avoid legal intervention. This includes knowing applicable federal and state laws and understanding the terms of their lease.
The experienced team of real estate attorneys at Owen & Dunivan can help litigate your real estate claims. Contact us today at (813) 502-6768 to schedule a free consultation.
Foreclosure in Florida can be an overwhelming and complicated experience. Understanding how the process works will alleviate stress and help you move forward once the foreclosure proceedings are complete. Here we take a moment to go over how the foreclosure process works in Florida.
Step 1: Missed Payments
Delinquency and default are both loan-related terms for missed payments. A loan becomes delinquent when you make payments late (under your contract) or miss a regular installment payment(s).
Default is the eventual consequence of extended payment delinquency, or when a borrower fails to keep up with the ongoing loan obligations. Additionally, if you deed your property you may be in default. Your loan may also default by not repaying the loan according to the terms included in the promissory note agreement; this may include making insufficient payments. A default may also exist if you fail to insure your property or pay property taxes.
Some mortgage loans may contain language that your mortgage is in default even if your only miss one payment or are over 30 days late. This default language permits mortgage lenders to start the foreclosure procedure once your loan goes into default.
Step 2: Pre-Foreclosure Loss Mitigation Period (Dual Tracking)
Generally, for a foreclosure lawsuit to be filed in Florida, the debtor must be delinquent for at least 120 days. Until this happens, a lender can request payment by contacting the borrower or issue a breach letter.
During this period, the debtor and lender should discuss potential loss mitigation options such as a loan modification, short sale, on assumption of the mortgage.
Step 3: Consultation with a Foreclosure Defense Attorney
If a foreclosure lawsuit seems to be inevitable, it is highly suggested to meet with an experienced foreclosure defense attorney to avoid having a foreclosure on record. An attorney, like the team at Owen & Dunivan, will also seek viable options to foreclosure as well as represent the borrower’s best interests throughout the foreclosure process.
Step 4: Issue of Notice of Default
The first step in foreclosure proceedings is for the lender to notify the debtor that a civil complaint has been made against them. This officially declares that a borrower is in default due to missed mortgage payments.
Step 5: Filing of the Lawsuit
The next step is to file the lawsuit (typically a Summons and Complaint) which indicates that litigation is pending. The action will be publicly recorded and is the formal start to the judicial foreclosure process. The complaint is typically hand-delivered by the sheriff of the county where the borrower resides.
Step 6: Borrower Response
The borrower will typically have 20 days to file with the clerk of court with a response to the Summons and Complaint.
At this stage in the process, a top-rated foreclosure attorney will raise a proper defense(s) on the borrower’s behalf. If an answer to the complaint is not provided by the borrower, the process may proceed to the summary judgment without the borrower having the opportunity to plead his or her case.
Step 7: Motion for Summary Judgment
During this step of foreclosure, the lender will likely file a motion for a summary judgment with hopes to avoid formal court proceedings. Should the judge rule in favor of the motion, both parties can present their cases in the summary judgment hearing and a decision will be made by the judge.
Step 8: The Foreclosure Trial
If the motion for summary judgment is not granted, a foreclosure trial will ensue. At the trial, both parties will have the opportunity to present their arguments and the foreclosure judge will issue a ruling.
Step 9: Auction & Eviction
If the judgment is in favor of the lender, the property will be sold at an auction, typically occurring a few weeks after the trial. Once sold, the title of the property will be issued to the new owner and the debtor will be evicted.
If a tenant is in the property, certain protections may exist.
Step 10: Deficiency Judgment
In the state of Florida, lenders have the option to seek a deficiency judgment for the dollar amount not covered by the property’s sale price. A qualified foreclosure attorney knows how to keep this from happening.
Don’t Face Foreclosure Alone
Are you struggling to pay your mortgage and worried that foreclosure is a possibility? The Tampa law offices of Owen & Dunivan can help. Our foreclosure defense attorneys have the experience and tenacity to handle your case and will ensure your legal rights are protected. Call us today at (813) 506-6768 to schedule a free consultation.
The good news for those facing foreclosure proceedings is that a Florida appellate court has found that lenders are prohibited, in some instances, from collecting payments missed more than five years prior to the filing of the foreclosure action. By law, a lender has a five-year statute of limitations to file a foreclosure action against a subsequent default. Up until recently, it had been unclear whether the lender was also able to collect payments missed outside of the five-year statute of limitations.
Let’s look to the foreclosure case of Grdic v. HSBC Bank: the original mortgage foreclosure complaint against Grdic was filed 10/16/14–over five years and six months after the first alleged missed payment. The borrower sought to dismiss the action, the trial court disagreed.
The reason here is that nature of the note — the amount due (principal) does not change once you stop payments. If the foreclosing bank pleads their argument correctly in court, under current law, they may collect the entire balance of the loan, including any default interest. This may be applied from the original default on the loan.
You defaulted in 2012, missing the May 2012 payment and the mortgage payments thereafter. Foreclosure was filed in 2012 and involuntarily dismissed by the Court in 2018.
The bank files a new foreclosure action against you on 9/1/19, regarding May 2012 and all subsequent defaults.
If the new lawsuit properly requests everything defaulted on be awarded in the judgment, they could seek to collect the entire balance of the loan.
As foreclosure defense attorneys, we hoped the appellate courts would rule that any missed payments outside the 5-year timeframe would be immediately barred by the statute of limitations. However, this isn’t the case; therefore, you need a foreclosure lawyer on your side.
Does This Law Effect Other Defense Cases?
Here’s where things get a bit more complicated.
In many cases, mortgages require that prior to moving forward on a foreclosure action, the bank must allow the borrower the opportunity to cure the default (generally, as detailed in paragraph 22 of the mortgage). If a borrower is unable to cure the default within the period allotted, a lender would send a “paragraph 22 letter” to the borrower.
Failure to send an accurate paragraph 22 letter could result in a breach of a material term of the mortgage and the borrower being “prejudiced” by the deficiency in the letter – potentially resulting in a case dismissal. This could be particularly true if a bank pleads wrongly. However, some courts have been hesitant to hold that the lender’s failure to send a completely accurate paragraph 22 letter justifies a case dismissal.
Need a Tampa Foreclosure Attorney?
Each case is unique, and it depends if the bank can collect on your missed payments. Foreclosure proceedings can be complex, and move very quickly now, which is why it is critical to seek the help of an experienced foreclosure defense attorney.
If you or someone you know is facing foreclosure, call our Tampa law office today at (813) 502-6768. At Owen & Dunivan, top-rated lawyers are committed to helping every step of the legal process. Just served? We offer a free consultation.
Today, hackers can gain access to millions of people’s personal information such as name, address, date of birth, and even your social security number. In yet another breach, it has been reported that nearly 140,000 social security numbers were accessed, according to Capital One. Some financial experts say that this was inevitable, and the damage could’ve been way worse. When your sensitive credit information is stolen it can impact your credit score and your credit accounts. Keep reading to learn answers about the data breach and what you may be entitled to from the multi-million consumer settlements.
About the Data Breaches
A data breach at Capital One has left more than 100 million people exposed in recent years; although, according to Capital One, no credit card numbers or login information were released or obtained in the last hack.
This mirrors the prior big data breach with consumer reporting agency Equifax. In that breach, the stakes were a bit higher. In fact, that hack remained unnoticed by Equifax for more than six weeks. This data breach exposed the Social Security and other personal data of approximately 150 million people. This data breach was one of the largest ever to impact private consumer information. Equifax’s $700 million settlement with the government includes up to $425 million for consumers like you.
In most cases, Equifax is offering customers who were affected free credit-monitoring and identity-restoration services. You may also be eligible for the money you previously spent on these services. It is anticipated that the Capital One breach will see a similar result.
What might a hacker have stolen in the breach?
Both Capital One and Equifax stores everything related to your financial profile in internet-based systems. Which harbor information for millions of consumers’, including your:
Name and address;
Email address and/or phone number;
The amount owed to third party’s, and;
Monitoring court judgments or liens against you
This compromised data included Social Security numbers, birth dates, addresses, driver license numbers, and credit card numbers. And left millions exposed. Equifax even reported over 3,000 passport images were also stolen in the data breach.
Cybercriminals can –and will certainly—use this personal information to commit identity theft, which can follow you for years impacting your ability to purchase or sell your property. Additionally, they may sell your information on the “dark web”.
How do I know if my information was affected?
If your information was in danger, Capital One or Equifax may reach out to you. However, make sure that your statements seem accurate and there isn’t any suspicious activity in your card. If so, contact your credit card issuer as soon as possible.
You can also consider placing credit freezes with the major credit reporting bureaus, which will help prevent cyber thieves from opening new accounts without your knowledge. Locking your credit report can help control who has access to it, but existing creditors can still access your report for account review needs. These credit freezes are free. Keep in mind you’ll need to temporarily lift the freeze if/when you need to apply for a new account, loan or a mortgage. Simply, unlock your Equifax or TransUnion credit report for a credit check. When done, simply relock your credit report with one-click.
If my information was involved, can I sue?
Capital One is being proactive by offering free credit monitoring and identity protection to those customers who were affected. Owen & Dunivan law firm can help you find a debt relief agency and can assist you with your credit card negotiations or legal action if your identity is stolen.
As of July 2019, the Equifax settlement was still pending approval by the U.S. District Court. Once the court approves the Equifax Data Breach Settlement; you can file a claim. You may have been emailed that you’re a potential claimant.
What have Equifax and Capital One done to protect customers?
Both companies have admitted that mistakes were made and have taken action to correct issues that allowed the data breaches to happen. This includes better monitoring, restricted traffic (even on internal servers), and increased control on who can access certain systems and data networks.
Additionally, Equifax began a free credit-alert service and offered customers more control over their online data. The company also removed high-level personnel who retired following the breach.
Tips to Monitor Your Credit
Even if your data made it unscathed in these breaches, it’s recommended that you always monitor your credit card statement for any unusual and suspicious activity. Immediately report any unusual activity to your bank or credit institution.
Additional steps you can take to protect your credit and identity are:
If you are suspicious of fraud in your credit, immediately place a fraud alert within your credit card issuer. By setting up a fraud alert, any of the three major credit reporting agencies will notify you if anyone attempts to apply for credit under your name.
You can always freeze your credit if you would to like to prevent anyone from opening other credit cards or loans under your name. You will have to request a freeze with each of the credit reporting companies (Equifax, Experian, and TransUnion). It’s free, quick, and easy and can be done over the phone or online. When you freeze your account, no new charges can be added to your card.
When shopping online, be aware that the website begins with “https”, this ensures that there are additional security features to protect your information. Keep in mind that whenever you purchase something with your credit card, there will always be some level of risk.
Protecting Your Private Information
With Capital One and Equifax breaches impacting millions of Americans, it’s unclear what may happen for some consumers in the future. All the sensitive data that was obtained during these data breaches may be used to steal your identity.
Your credit is highly important when it comes to your home and staying out of bankruptcy. We suggest you monitor your bank and credit card statements each month. Regularly checking your credit reports –you can set up email alerts- and report any unusual or suspicious activity you see.
If your information was part of the breach, credit monitoring companies may be in contact with you. If you would like a professional to oversee and review your financial accounts and explain how the data breach may impact your case, contact the consumer protection law office of Owen & Dunivan for more information.
In a recent infographic released by the National Consumer Law Center, Florida ranked number one for the highest amount of debt collection complaints in the nation. This study was based on data compiled by the Federal Trade Commission. It found that for every 100,000 people, 476 Florida Consumers complained about debt collection methods. In other words, Florida’s complaints are almost 4 times higher than the national average (125). This is very concerning because Florida ranked 13th in the nation for the number of individuals with debt in the collection. This was 39% based on 2016 credit bureau records. Similarly, the median is 30%.
If you are being harassed or have a debt collection complaint, hire an attorney
Oftentimes, I take these cases on a contingency basis. If you think that a debt collector is trying to illegally collect a debt from you that you do not owe or are misrepresenting the amount of that debt, hiring an experienced consumer protection attorney can dramatically increase your odds of being treated fairly by these debt collectors.
If you need are interested in a consultation, please don’t hesitate to reach out to me. You can do this three ways: (1) call 813.502.6768, (2) e-mail me, or (3) set up a time online.
I am getting a lot of calls from people like you – they are facing foreclosure or a sale date and literally had 0 contact with their attorney. They are just learning of the “Stopa Bankruptcy” or are getting official notices from the Bankruptcy Court. They weren’t told of the status of their cases. They weren’t told what they were facing. Some of them had a settlement entered into without them truly signing off on it. I’ve decided to give his (former?) clients a resource as to whats going on.
Stay in My Home, PA – what is it?
Stay in my Home, PA is a law firm founded out of the ashes of Stopa Law Firm. There was an attorney by the name of Mark Stopa – a stellar trial attorney – that was focused on litigating foreclosure cases. he helped (and potentially did not help) thousands of clients through this process. Plainly put he was a force. I will admit, I looked up to his courtroom skills. I’ll be honest, I considered Mark a mentor, someone I looked up to for his tenacity in the court room in my early years. In the foreclosure world, defense attorneys often forget that they are charged with zealously representing their clients. Despite external pressures from opposing counsels (and the decreasing amount of defenses found in this practice), he always (appeared to me) to have his clients voices heard.
The problem was, he didn’t have the best client contact methods in place (a frequent complaint) and may have manipulated some situations in his favor (remember, dear reader, innocent until proven guilty). In the end, he allegedly settled cases without clients consent. Failed to appear at hearings and trials without receiving the proper cancellations, etc. Because of these allegations, and others, Mark Stopa was suspended from the practice of law, on an emergency basis in July of 2018. He was given 30 days to “wind down” his practice. During this time, Mark Stopa partnered with Richard Mockler – an individual who tried to right the ship. What we know now is that this attempt was done in vain, the ship was too far of course to be corrected. It’s like, as Mr. Mockler put it, the titanic. The iceberg was simply too close.
Stay in My Home, PA/Stopa Bankruptcy
The firm eventually collapsed. Perhaps aided by a raid by the Florida Department of Law Enforcement (FDLE). In its own words, the FDLE raid was the tipping point. The firm noted that many key members of staff left, as well as some attorneys. Inevitably, this lead to a bankruptcy filing (for Stay in My Home/Stopa Law Firm), which is currently pending before Judge Colton in the Federal Bankruptcy Court for the Middle District of Florida. The bankruptcy trustee (i.e., the creditors) requested an automatic stay (read as injunction – something to stop future action) which was granted (heres the order). Effectively, most cases that had hired Mr. Stopa are stopped (except for current sales scheduled between October 11 – November 6) and at least one judge is requesting hearings to determine representation.
This Stay in My Home/Stopa Law bankruptcy has many repercussions; however, the most frequent questions I am seeing tend to fall into two camps:
What does this mean for me – New Clients
First, you’re probably getting a lot of mail because of the Stopa bankruptcy or the stay in my home bankruptcy. Those are advertisements. Generally, they are a form letter. It’s important to seek a case review from attorney’s that can move quickly and understand what is happening. Ideally, in this writers opinion, you will find a firm that does two things – litigates cases and offers loss mitigation. Most do not. The firm sees dollar signs in one (litigation) and does not have the technical proficiencies (or attention to detail) required to have any meaningful chance of turning a loan modification application into an affirmative cause of action aimed at achieving your goals (or, in some instances making a bank do something they literally guaranteed they would not do).
If you want an attorney like that – i’m available. I have made a reputation and being one of the last real foreclosure litgators left. But I don’t take every case, especially given the status of Mr. Stopa’s leftover case load. Whether its me or someone else, talk to an attorney as soon as possible. As a general rule (for those that are wondering) for every 1 Stopa case I take, I probably turn away 4.
What does this mean for me – Existing Clients
Again, you’re probably getting a lot of mail because of the stopa bankruptcy or the stay in my home bankruptcy. Those are advertisements. Generally, they are a form letter. It’s important to seek a case review from attorney’s that can move quickly and understand what is happening. Here’s the difference between you and a new client – your case is probably a few years older. You have a very different set of circumstances. Mr. Stopa was a very polarizing figure in the court room – I’ve seen him scold judges. This can hurt your case, there may be some sentiment of that following your case. A lot of judges are trying to clear the backlog of these cases (he apparently had over 3,000) as efficiently as possible. Older cases may very well get set for trial. Because of a bankruptcy stay, you have time (but not much). Act quickly
What does this mean for me – Foreclosure Sale scheduled.
Sadly, you may not have the benefit of the foreclosure stay. What this means is that you have to get creative with how you are going to deal with the bank. If you haven’t retained counsel, you probably want to think about it. A good thing here is that there are countless bank attorneys that are trying to help. If a sale is pending, or if you simply want to reach out to someone, I can say with certainty, most attorneys representing banks are wanting to bridge the gap. You are, after all, their client’s customers. Despite your situation, they’ll try to help if they can.
If you need any help here, please don’t hesitate to reach out to me. You can do this three ways: (1) call 813.502.6768, (2) e-mail me, or (3) set up a time online. If we can help, we’ll certainly try. This may mean referring you to competent counsel (such as a bankruptcy), but if we know of the right resource for you – we’ll try to point you too it.
We’ve been receiving a lot of calls from consumers that are seeing Collins Asset Group, LLC on documents that have been sent to them or their credit report
As part of my mission to help consumers, I try to spot the recent trends and help folks make sense of what they may be seeing on their credit report, in the mail, or are being given by process servers. Recently, we’ve seen a huge uptick in debt collection attempts by an outfit named Collins Asset Group, LLC. We’ve seen a few different scenarios popping up regarding this entity.
Served in a Lawsuit by Collins Asset Group, LLC
Starting with what is generally the most obvious attempt to collect a debt from Collins Asset Group, you may be served with a law suit. This seems to be pretty typical, with the entity buying notes and taking over final judgments of foreclosure (possibly to pursue deficiency judgments). Generally, you have 20 days to answer the complaint – this is a pivotal step in the case. By purchasing Notes, Collins Asset Group will have to prove their standing to sue – if they don’t, it can be a disaster for them. The hard part though, is that proper defenses must be raised in that answer. If you leave something out, you can potentially waive that defense (e.g., never borrowing money from them, the statute of limitations, etc.).
Receiving collection letters from Collins Asset Group, LLC
We’ve been seeing an increase in debt collection letters from Collins Asset Group too. A lot of times, Collins Asset Group is indicating that they have just purchased the right to collect the debt. These letters can be a gold mine for potential issues. What we are seeing are various debt collection violations – things that seem innocuous unless the reader knows the law and what they are trying to do. Sometimes they do not disclose their ability to collect. At times, they may not even tell you that the debt may be time barred. If you know what you are looking for, you may find violations of the Fair Debt Collection Practices Act or the Florida Consumer Collections Practices Act. I’ve dedicated a large part of my career to spotting these issues. If they exist, you may have the ability to countersue or attempt to have them correct these issues.
If you are receiving letters from Collins Asset Group, and would like them reviewed for these issues, meeting with an attorney should be done very quickly. These statutes generally have very short time periods available to bring your claims. Once you miss them, they are generally gone. Generally, most folks wait until months after receiving notices to speak to an attorney, by the time we discover this information, the time to do something about it has passed. If you’d like to know what, if any, potential statute violations are in materials you receive, feel free to either call my office or book with me online to speak with me.
(Note: Edited to address recent inquiries about lawyer suspension, sudden lawyer sickness, and lack of communication – original published on 04/23/2015)
Some recent lawyer suspension reports have been adding an influx of calls lately, and I wrote this a few years ago to help.
This has been helpful for some folks who have found themselves in a similar situation. While I certainly hope that no one is ever in this position, having some direction on what to do can be a life saver. My first recommendation is to contact the Florida Bar – if there are pending complaints, they should be able to tell you. You never know, there may be others in a similar situation. They may also be able to tell you if your lawyer has closed up the practice or other news.
Every individual’s biggest fear in active litigation is that their attorney suddenly does not fit their needs.
For some, they will simply stop representing them. For others, they cannot reach their attorney or there is no response from attorney’s firm. Believe it or not, this is one of the most common complaints between lawyer and client. Then there are those instances that even an attorney shudders when the hear it – the law firm has closed its doors (seemingly over night), the lawyer has been disciplined by the Florida Bar or even that the attorney is now suspended or disbarred. A lot of these situations can be avoided; however, here, I will try to give you pointed advice on what to do if you find yourself in the worst position for a party to a lawsuit to imagine – your lawyer’s offices closed, he or she has stopped responding to your emails and phone calls, your calls don’t go through to their firm, you have found way too many complaints against your lawyer, or even if he was sent to jail. The bottom line – time is of the essence so you can minimize the impact to your case. <h4>If your attorney was recently suspended, and you need a new one, or you are finding that you do not trust them to handle your legal issues – we offer three very easy ways to reach us: call (813) 502-6768, e-mail us, or schedule with me online. </h4>
First, try not to panic!
I know that is easier said than done. If you cannot contact your attorney or there is no response from an attorney – don’t start by posting things on social media asking or making complaints. If someone from the other side of the law suit sees you doing this, it may give them ideas on how to aggressively litigate your case while you may be dealing with this.
After – that’s fine. But you need to make a plan on how to get your case healthy before that process starts.
Second, do you recall your last conversation with your attorney?
Do you remember anything about the conversation? Did they say they may be in court a lot during the week you are trying to contact them? Are you able to reach anyone at that lawyer’s office? Can you physically visit the office and walk in? What was the last status update you received from them or their staff? How about pleadings/motions?
Did you recently talk about a recent hearing? If so, you can check the docket online (usually) and see the outcome. A huge red flag is a lawyer missing hearings. If you haven’t received anything, are getting orders from hearings that were not attended, or don’t know how to answer these questions, please, get a free consultation from an attorney. If no one will talk with you, I will.
Next, gather the important documents!
I am trying very hard to not scare you, but this part will. Gather everything and bring it to the consultation with your attorney. Insist on an in person consultation. If you think you have enough information – you may not. If you walk in empty handed, bring a note pad. It is very important, going forward, to get as much information about your case. You may find that you were represented very poorly and that what you were told does not match reality. This is sadly the case in many situations. The goal here is to get information and be in a position to react to it.
Be Honest with Your Goals.
If your case has been ongoing for years, you may be facing a hostile judiciary, an a bank or opposing party that has simply lost its patience with you and your case. If you know what your goal is, it is time to move towards it – whether through counsel or independently. If you cannot reach your attorney, or if your attorney does not respond to you, you have to have an ability to direct your new attorney as to what your end game is – in some cases it may be litigating for a day in court and in some other situations it may simply be a soft landing (loan modification or other form of settlement.) Only you know what your goal is, and it is your attorneys job to counsel you on what is achievable and what is not.
Loan Modification and Bank Issues Still Plague Consumers
I read a recent article in the New York Post where a homeowner is seeking to fight back using glitches in a banks loan modification system. This news left me unsurprised that someone had this happen to them. Many of my clients have had prior attorneys in their foreclosure cases that did not offer loss mitigation services (loan modifications and short sales). They hadn’t seen what this consumer and my office see everyday – loss mitigation errors in processing by the banks. In this article, it appears Wells Fargo admitted to a glitch which triggered a denial of a loan modification affecting roughly 600 people and a homeowner is trying to claim that they were part of that group. It didn’t have to take that long, but for so many consumers they are simply unaware of the errors in the first place.
Avoid Loss Mitigation Errors by keeping a paper trial of your communications with the bank in foreclosure
If you are trying to navigate the loan modification or short sale waters alone – do so with caution. An attorney that does this everyday is highly advisable. This is because various rules and regulations are out there that are designed to keep the bank honest in working on your loss mitigation application. This is meant to help avoid loss mitigation errors if you know what you are looking for.
If you are submitting a loss mitigation package, or have done so in the past, take a few moments to create a timeline. Itemize when you started the process. Detail what you sent and in what method. If you received something in the mail from the bank or servicer – write that down too. Do you think there was an error in handling the loss mitigation application (e.g., you never heard back after you uploaded it, they requested the same documents you had sent, etc.)
If you can’t seem to get a decision from the Bank – bring the information you’ve gathered to an attorney. They may see patterns and practices that are clearly wrong – such as a potential denial letter for “not enough income” shown on the application when there truly is a large income shown in it. It’s important to read everything coming in from the bank.
In some instances, you can even give the bank notice of their loss mitigation errors and get them to admit that they made a mistake. If that happens, they are likely to begin to correct that error and reattempt to find a program for the consumer. This is commonly done in our office by using the Notice of Error, Qualified Written Requests, and Requests for Information made available to consumers by the Consumer Financial Protection Bureau.
Having Loss Mitigation Problems – maybe we should talk?
If you are a homeowner that is tired of dealing with the run around from the banks or loss mitigation errors and not sure how to make them aware of their mistakes – let’s set up a time to talk. Meeting with an attorney can be very helpful to you. I pride myself on being easy to get to. You can reach me 3 ways: (1) call my office at 813.502.6768, (2) e-mail me at my firm – we’ll get you set up for a time to speak to me; or (3) schedule a consultation by using my online platform.
Did you just find out what the payment on your Property Assessed Clean Energy (PACE) loan will be?
Haven’t heard of a PACE loan? Me either. I recently read a National Consumer Law Center response that has me very afraid for my clients and the increase of PACE Loans. I wanted to take a few moments to educate and try to help those that are only know learning about this loan type:
Do you have a Property Assessed Clean Energy (PACE) loan? Are you finding out what your payment is now going to be? You’re not alone – hundreds (if not thousands) of homeowners have been in the same position you are. This is a newly forming, and potentially disastrous new form of lending which is currently the fastest growing lending and investment program throughout the nation. This form of lending has been compared to the type of sub-prime loans that caused the economic downturn and the foreclosures that still haunt our state to this day.
What is a PACE loan?
A PACE loan, at its core, is a loan program that offered loans for energy-efficient home improvements (solar panels, HVAC systems, and energy-efficient windows). A contractor typically offers this loan and secures it by a property tax lien. The local tax collector (property taxes) then collects the outstanding amount through annual tax assessments. The state of Florida and your local government authorizes these programs, but they are generally run by private corporations with no oversight.
How does a PACE loan work?
Generally, a homeowner will be approached by a contractor or other private individual citing issues with the property. In fact, the PACE program is designed to use a home improvement contractor as the salesperson for the loan product. Even if you are not approached directly door-to-door, it is becoming increasingly more common for a contractor to try to “up-sell” repairs needed to the home (i. e., a new toilet becomes the need for a set of solar panels and water heater). Typically, homeowners are being told that the savings on energy will offset the cost of, or even pay for, the new upgrade to the home.
There are minimal criteria for receiving this form of financing: (1) improvements must not exceed 15% of the property’s value, (2) the combined mortgage related debt and amount of the PACE loan cannot equal more than 100% of the property’s value, and (3) the total annual property tax and assessments must not exceed a percentage of the property’s market value.
What are the risks?
As you can imagine, this is fraught with issues. Gone are the days when the world could be trusted – especially door-to-door salespeople. While the complaints associated with this type of lending are numerous, I’ve gathered a few to help you conceptualize and envision just how scary this type of loan can be:
First of all, imagine you were convinced to take a PACE loan on your property. You probably know you are going to have a new tax assessment. You know you have the ability to pay it. Imagine the repair starts to show signs of not being done properly (those new solar panels? The roof leaks during the first rain!) The contractor has probably been paid for the work – and now you have to track them down;
Homeowners are told they can get a tax refund. Generally, there is only a non-refundable tax credit available for this type of loan. Most importantly, consult your CPA and ask about 26 USC 25C/25D;
The sales person knows the maximum your home can qualify for! It’s pretty easy math that leads to exploitation – they shoot for 15% of the market value of the property. Your $200,000 home can be a $30,000 payday for the contractor;
This loan isn’t like a mortgage – it is applied as a tax lien. Generally, these loans will take priority over your mortgage – which may put you in default;
Escrowed Mortgage Payment (where you pay insurance and taxes through your mortgage payment)? Expect an increase in your mortgage payment months after the work has been done. This can be devastating to homeowners on a fixed income. Often times, your escrow payment is calculated around mid year. This means that if you put the solar panels on 6 months ago, it’ll take time to catch up with you;
Trying to refinance or sell your home? This loan can cause issues with that. Homeowners are being told that if they sell the property, the tax assessment will go on to the new owner. This may be a deal breaker for some buyers. If the buyer finds out about it post contract (and you did not disclose the loan) you can be looking at a lot of headaches in your transaction; AND
Finally, there is no meaningful review of an ability to pay. This loan is tied to your property’s value – not your income. Consequently, it’s incredibly difficult for homeowners that are living paycheck to paycheck to budget for.
I have a PACE loan and didn’t know all of this – we need to talk!
Most importantly, if you have recently gotten a PACE loan – or have a contractor that is asking you to get one – meeting with an attorney can be very helpful to you. I pride myself on being easy to get to. You can reach me 3 ways: (1) call my office at 813.502.6768, (2) e-mail me at my firm – we’ll get you set up for a time to speak to me; or (3) schedule a consultation by using my online platform.
Attorney Bryant Dunivan's offices are centrally located in Tampa, FL and Valrico, FL. From these locations, Mr. Dunivan represents clients facing Foreclosure, Chapter 7 and 13 Bankruptcy, Consumer Protection, and Real Estate Law. This includes the entire state of Florida - including Hillsborough, Pasco, Pinellas, Osceola, Seminole, Orange, Lee, and Collier counties. Mr. Dunivan represents clients throughout the state of Florida.
Tampa, FL Office 615 W. De Leon St. Tampa, FL33606
Valrico, FL Office 1815 East State Road 60 Suite 202 Valrico, FL33594
A consultation with me or my firm may result in seeking relief under Title 11 of the US Code (Bankruptcy). We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.