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Bankruptcy Lanigan & Lanigan, P.L.
831 W. Morse Blvd., Winter Park, Florida 32789

407-740-7379

E-Mail Eric A. Lanigan HereE-Mail Roddy B. Lanigan Here
real estate

mortgage workouts

What to Do When Foreclosure Happens in Florida

Getting served with foreclosure papers is probably the most traumatic thing that most people will ever got through in their life. I’ve had clients describe it to me as being hit in the chest with a baseball bat. They just feel like they’re emotionally knocked to the ground and they have visions of having to move out of their house in a few days.

If that’s the situation you’re in and you’ve been served with papers in a foreclosure action. The first piece of advice I would give you is to take a deep breath and calm down.

There is a video on this topic on the Lanigan and Lanigan YouTube channel called

Foreclosure litigation is like any other litigation that goes through the court system; it’s going to take a while. I tell clients all the time, if you do absolutely nothing in response to the foreclosure papers, it will still take probably at least four or five months to complete the process before you would be moving.

So you don’t need to rush down to U-haul to buy a bunch of moving boxes as soon as you get served with foreclosure papers. As crowded as the court dockets are today, it’s not unusual for foreclosure to take two, three or five months, 12, 18 or 24 months depending on what defenses can be raised.

One of the things that we can do when we approach a foreclosure defense case is first of all is to look at the transaction, the original mortgage loan transaction. There’s a lot of federal requirements, a lot of technicalities that have to be met.

Most of you have probably read in the newspapers or seen on the news, stories about ways that some of the mortgage lenders have tried to speed up the process by having people sign papers that they don’t even know what they’re signing. All of these things can come together to create a defense to a mortgage foreclosure case.

Although extremely rare, we have within the last couple of years two or three cases where we were able to come in and show that the mortgage was completely invalid, that there was no lien on the property at all that could be legally enforced. Now as I said before it is common for us to come in and find several mistakes, not so fundamental as to cause the mortgage to be invalid but to certainly create problems for the mortgage lender. That opens the door then for settlement, because a foreclosure action is just another lawsuit. Like any other lawsuit, we’re looking for ways to settle the lawsuit.

In a foreclosure action settling a lawsuit will typically mean working out some sort of new arrangement or modification of the mortgage to take into consideration not only the legal problems that we might find but the economic realities of today.

Because there’s one thing we know for sure, while these banks have to file foreclosure actions, when a loan goes into default, the reality is the last thing on earth they want is anther vacant house in their inventory.

So we have found that in using the same type of negotiating techniques we use in other types of litigation coupled with a thorough knowledge of the mortgage industry and what the banks are dealing with, that we can, in many cases work out an effective relationship. Or new relationship going forward between the lender and the homeowner such that they stay in the house and have a payment plan that is affordable and they now have a house where there is not a tremendous amount between what they owe and what the house is worth.

 Call 407-740-7379 to make an appointment and get ahead of the foreclosure process by coming in with your paperwork to the Lanigan & Lanigan Winter Park, Florida offices. Eric Lanigan or Roddy Lanigan will begin the long process to defend your home from a foreclosure lawsuit.

Meanwhile, keep and gather all foreclosure paperwork documentation for review.

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