Short Sales Attorneys
Hollywood, Florida

Over the last couple of years the issue of foreclosure defense, short-sales, mortgage modifications, and deeds-in-lieu of foreclosure have become a dominating topic in the news and the lives of our friends and family. These problems have grown to epic proportions and are nearly unavoidable. The aforementioned issues are more properly identified as “Distressed Property Transactions”. Aligning yourself with a competent real estate attorney can take away the stress and uncertainty of a distressed property transaction while mitigating any negative exposure or risk to your other assets. At Cohen & Owens, P.A., we have favorably resolved numerous situations concerning the above matters for our Clients and proudly continue to do so. See below for list of things to avoid doing.

The main goals of foreclosure defense is to create the time needed to objectively analyze the best interests of the Client, mitigate liabilities, protect assets, execute an individual recovery plan, and to create closure so you and your family can move forward. While you may already have your goals in mind, it is essential to have a real estate attorney on your side that has significant experience with real estate closings, debt defense, consumer protection, real estate litigation, and most importantly, distressed property transactions.

The Federal Government and banks have created a framework for resolving defaulted loans which goes by the acronym, “RAMPD”.

• Repayment Plan, also known as loan reinstatement. The negotiation of a settlement agreement or arrangement in which the borrower pays past due amounts while still making regular payments. Despite a default occurring, the lender will not proceed to file a foreclosure lawsuit or entry of judgment as they have accepted a recovery plan.
  
  
• Advance, a financial advance to cure the defaulted loan.
  
  
• Modification, a negotiated amendment or modification to the existing loan resulting in new loan terms that are more favorable for the borrower. Examples of some loan modifications are reduction in interest rates, re-amortization of the loan to lessen the monthly payments for principal and interest, converting loans from adjustable, interest only, or balloon loans to fixed rate products.
  
  
• Pre-Foreclosure Short-Sale, more accurately stated as a sale of the subject property for an amount which is less than the outstanding loan balance prior to the issuance of a Final Judgment of Foreclosure. In these cases it is possible to have the borrower released from any and all liability for the deficiency provided the matter is handled properly. There are many requirements that must be satisfied in order to make the most out of your short-sale.
  
  
• Deed-in-Lieu of Foreclosure, the transfer of title from the owner of the subject property to the lender in order to satisfy the mortgage debt and avoid foreclosure. It is important to be mindful that you also executed a note (personal guaranty to repay the borrowed funds) and most Deeds-in-Lieu of foreclosure do not include a release of the note.
  
  
• While the banks and government may have their priority order for resolving defaulted loans, you may have a different agenda or set of priorities. Through analyzing your objectives, we can help you control the outcome of your case and motivate the lender to acquiesce to outcome that you desire.
  
  
• Items not to do if faced with a foreclosure lawsuit or default in your mortgage:
  
  
  • If served with a foreclosure lawsuit, do not ignore the same. You should consult a real estate attorney as soon as possible to protect your interests. Simply sending a letter to the Court or opposing counsel will not protect you from the entry of a Final Judgment.
    
    
  • Do not attempt to resolve a dispute with your lender by yourself. Individuals often provide personal financial information to the lender or enter into agreements for modification without having them reviewed by an attorney. Your lender is acting on behalf of their best interests and not yours. They have a fiduciary duty to protect the investor(s) behind the loan and not the borrower. You should level the playing field by retaining an attorney and not a “consultant”
    
    There are numerous “mitigation” companies propping up that seek to provide you with a loan consultant that is not an attorney and likely has very little experience or knowledge about distressed property transactions. Even more important, they can not represent you in Court. More disturbing, they often suggest solutions that are not founded upon law or precedent, and consist of misinformation. These “mitigation” companies often charge more than a real estate attorney and have a more limited scope of services. At Cohen & Owens, P.A., we handle most cases on a reasonable flat fee or payment plan based upon the Client’s preference.
    
    
  • Do not panic. It is understandable that this is a stressful and frustrating time in your life. Re-acting after deliberation is much better than acting out of panic or lack of understanding. At Cohen & Owens, P.A., we never charge a consultation fee. You should seek the advice of a real estate attorney who can help you objectively analyze your situation who can suggest possible goals and strategies that will give you piece of mind and protection.
    

“At Cohen & Owens, we do not work from 9-5;

we work from beginning to end.”