Sentinel Law, P.A.

Consumer Services related to Bankruptcy and Foreclosure

Sentinel Law, P.A. is a law firm based out of Jacksonville and St. Augustine focused on the primary practice areas of Business, Real Estate, and Creditor/Debtor Litigation. We also provide a full range of transactional services for Inc. 500 and small start-up businesses. The information below focuses primarily on consumer related concerns as it relates to the individual typically using this website. For specifics on what makes Sentinel Law, P.A. different from other firms, visit our website at http://www.sentinelfirm.com/lawyer/sentinellaw

The Real Estate market has turned chaotic over the last few years, and many consumers in North & Central Florida are finding that they are unable to afford the home they may have only recently purchased. The answer to the foreclosure lawsuit has three major parts to it: 1) A statement admitting or denying the allegations made in the Complaint, 2) A list of defenses to the foreclosure lawsuit, and 3) A list of affirmative defenses to the foreclosure lawsuit. Sometimes there is a section called “Counter Claims” which acts like a counter-lawsuit, suing the lender for its own violations of the law.

The are many possible solutions:
Loan Modifications, Affirmative Defense, Short Sale, Deed in Lieu, Refinance, Reverse Mortgage, Bankruptcy, and more.
An explanation of each is provided below.

Sale Postponements
We will aggressively attempt to postpone the pending sale to give you and us more time to come to a resolution and get an approved workout with the Mortgage Company. In many instances the Mortgage Company will agree to postpone the sale for you to sell or establish funds.

The Reinstatement amount is the total amount that is past due including late fees and Attorney costs. This amount will get your Mortgage caught up immediately. Because of your financial circumstances in the past, you may be facing a sizable amount of past-due fees, including back payments, late fees and legal expenses.

Credit Help
We understand that if your mortgage payments have become delinquent in most cases so have other creditors. Creditors in some cases may cause you more grief than Lenders. Sentinel wants to help you correct your credit issues completely and efficiently.

Partial Claim (For FHA Home Loans Only)
If you have an FHA Loan, we will be able to start discussions with your lender for a Partial Claim. This strategy is only available on FHA loans. Working together with The Department of Housing and Urban Development (HUD), your lender will agree to help you with a one-time payment.

Second Mortgage Issues
You may not only have arrearages with your first mortgage, but also outstanding issues with a second mortgage or home equity loan. We can help you with these financial difficulties as well.

Deed-in-lieu of Foreclosure
The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principle advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure.

Important Information!!
You do not want to submit all of your personal information to a lender without it being reviewed by an Attorney who can evaluate your case. Prior to contacting your lender an Attoorney can review and revise a modification agreement to ensure that you are receiving the proper treatment and a long term financial solution.

The most common way of resolving a loan default is to work out a plan or "Repayment Plan" which will let you repay part of the delinquency each month, along with you regular monthly installment.

Loan Modification:
Everyone seems to talking about loan modifications under President Obama's Housing Bills. See our loan modification page for more information.

Short Sale:
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack of), by determining the probable selling price from a BPO (also known as a BOV or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Deed in Lieu:
Defined.  Basically, Deed in Lieu is similar to a voluntary repossession. You are signing over the deed or “title" to your property and the lender agrees to cancel the mortgage. In other words, the typical deed in lieu of foreclosure is a consensual transaction – you have complied with a long list of requirements placed upon you by the lender, they have evaluated your facts and circumstances and, after great deliberation, a long time and a little bit of luck, they agree to take back the real estate instead o suing you!  Typically the lender draws up the Deed in Lieu of Foreclosure Agreement which must be signed by the grantor / homeowner, witnessed by two people and notarized.  Upon execution, the deed in lieu must then be delivered to the grantee / lender.  The deed is also typically recorded at the local clerk of court in the public records.

The process, however, isn't as always as clean-cut as it may appear. For instance, the lender typically reserves the right to seek a deficiency judgment against you, the borrower / homeowner. Once the lender takes possession, the property (i.e., REO) will be put up for sale. Unless otherwise stipulated in the Deed in Lieu of Foreclosure agreement, the lender may come after you for the unpaid debt.

Affirmative Defense:
The defenses section of the Answer is the section where the defendant-borrower states the reasons why the lawsuit should never have been filed because the plaintiff-lender is "flatly wrong." Each defense only needs to be a short and plain statement of the defense raised, unless fraud is one of the defenses, in which case the specific grounds of the fraud must be stated. The following are all possible defense to foreclosure:

1. Due Process, 2. Rescission, 3. Lost Notes, 4. Mortgage Electronic Registration Systems Inc.
5. Force-placed Insurance, 6. Lost Payments, 7. Failure to Accelerate the Note, 8. FHA-Insured Loans, 9. Accepting Payments After Foreclosure, 10. Truth-in-Lending and HOEPA Violations
11. Fraud, Abuse, Collusion, 12. Fair Debt Collection Practices Act, 13. Failure to Attach Note and Mortgage to Complaint, and 14. Incorrect Notice or Service. While these defense should not be carelessly applied, Sentinel Law can assess your situation and determine whether your situation may call for one or more of these affirmative defense.

Bankruptcy
Bankruptcy allows individuals or businesses ("debtors") who owe others ("creditors") more money than they're able to pay to either work out a plan to repay the money over time or completely eliminate ("discharge") most of the bills.

How does bankruptcy stop home foreclosure?
If your home is currently in foreclosure, or headed there, filing bankruptcy under Title 11 of the United States Code prior to the foreclosure sale will stop the sale. Chapter 13 bankruptcy will also allow you to pay your monthly mortgage payment and the payments you fell behind on, through a Chapter 13 Payment Plan that we file for you at the beginning of your case. Depending on your situation, you may be able to eliminate all of your unsecured debt through a Chapter 13, or pay back only what you can afford to pay back to your unsecured creditors. The foreclosure process varies from mortgage company to mortgage company. Each lender has different criteria and guidlines for dealing with a margin of loss. You typically have approximately 90 days from the time you are served before your house is sold. However, this is not always the case. We advise you to contact a lawyer as soon as possible after you are served to stop the home foreclosure process and devise an appropriate strategy based on your situation.

Refinance
This is the act of replacing an existing mortgage loan with a different mortgage loan, usually one that benefits the home owner.  The benefits from acquiring a new home loan to replace your existing home loan are usually attributed to a lower interest rate. Let's assume you purchased your home last year.  Interest rates for a conventional 30 year fixed mortgage were 6.20% and today they are 6%.  This would equate to .2% savings in interest rate on your mortgage loan.  A .2% savings in interest rate doesn't sound significant but in fact for every $100,000 this would equate to approximately $150 a year in savings.  Often times, mortgage refinancing is done to save a significant amount of money.  There are specific lenders that specialize in mortgage refinancing so their specialists can help.  As with anything, beware of refinance companies offering outrageously low interest rates.  Be sure to read all the fine print and ask questions. In rare occasions, a family facing foreclosure may be able to qualify for a refiancing.

Articles Written

Foreclosure Freeze, Firm Fraud, and Carmen Sandiego

Created On: 10/12/2010

So you've heard on the news that BOA and other banks have stopped filing foreclosures... Does this mean that there will be a moratorium? Does it mean that the banks will work harder to modify and short sale? Does it mean...

Why Use a Foreclosure Defense Attorney? Helping Homeowners Avoid Foreclosure

Created On: 08/20/2009

The market is saturated with self proclaimed "foreclosure rescue consultants" and companies seeking to grab money from financially distressed families...

Case History

Foreclosure & Alternatives

Practice Area: Foreclosure

Description: We repeatedly have people that feel their lender has misled them or deliberately coached them into a foreclosure. Other home owners find the value of there home turned upside down just in time for an adjustable rate to explode in the middle of a financial hardship.

Outcome: In a given month we typically have a minimum of 40 cases achieve either a short sale, loan modification, deed in lieu, forbearance, reinstatement, dismissal of complaint, and if all else fails, we file bankruptcy. There are numerous options to discuss.

Lawyers

Joshua A. Cossey, Esq.

Free Case Review

Locations : Gainesville, FL; Jacksonville, FL

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Jesse McIntyre, Esq.

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