Non-Judicial Foreclosure Is Ridiculous Part II
Non-judicial foreclosure is not the answer to the Florida foreclosure problem. The answer to the foreclosure problem is open communication between a lender and a homeowner. The Florida Supreme Court recently addressed a problem that the Florida Governor and the Florida Legislature have been ignoring for several years.
The Florida Supreme Court established a task force to study the foreclosure problem, and the number one problem the task force found was a communication problem. It seems that the foreclosure task force ignored the people dealing with those lenders associated with the Florida Bankers Association. Lenders with the Florida Bankers Association work for months and months with its borrowers.
I really don’t know how the task force missed this many people when the Florida Bankers Association represents more than 90% of the banks in Florida. So either the Florida Supreme Court’s task force didn’t do their job or Mr. Sanchez has some explaining to do.
The second problem addressed by Mr. Sanchez is that the banks are working diligently to avoid foreclosure. I am having a real hard time believing that the banks associated with the Florida Bankers Association were actively communicating for months and months with the homeowners in an attempt to keep homeowners in their homes.
As a matter of fact, the Florida Supreme Court task force came to the exact opposite conclusion. Likewise, I hear exactly the opposite from the people that I speak with on a daily basis. As a matter of fact, I can honestly state that I have never heard one person tell me something like this: My mortgage company bent over backwards to help me, and I just didn't want to stay in the home. This statement is just ridiculous.
In my practice, I am hearing several things. First, I am hearing that the lenders are requiring homeowners to go ninety (90) days delinquent before they will even consider a mortgage modification. Second, I am hearing that it is impossible for a homeowner to get the same person on the phone. Third, I am hearing that each bank representative has a different story and different requirements to execute a loan modification. Fourth, I am hearing that the paperwork is being lost, not once, but multiple times.
As if this wasn’t frustrating enough for a homeowner, if they are lucky enough to get a temporary modification, they then have to reapply for a permanent modification, and the paperwork starts all over again with no guarantees.
I challenge Mr. Sanchez to produce five (5) homeowner to come forth, with documented proof, that the lender worked for months and months with them. If Mr. Sanchez can do that, I will produce ten (10) homeowners with a different story. In fact, I will produce ten (10) homeowners with documented proof of horror stories of loan modification hell.
Another myth that Mr. Sanchez does not address is the notion that the Short Sale somehow benefits the homeowner. He states that his banks work for months and months to help homeowners arrange for a short sale.
Short Sales are a scam in my opinion, which do nothing to help the homeowner. In this scam, the homeowners are told to put the property up for a short sale. What happens to the deficiency that is owed after the sale is complete? Try to get that detail in writing from your lender. You have a better chance of getting a mortgage modification which includes a principal reduction.
Wow, what an option this is for a homeowner. Here is a question: Why not let the homeowner purchase the home at the same price that the lender is willing to sell it to a third party? Where is the logic behind allowing a third party to come in and purchase the home out from under a family that is already living in the home with a vested interest in staying in the home?
I would like to think that a lender that has been working with a homeowner for months and months would be willing to allow them to re-purchase the home, yet I have never seen this done in practice.
Click HERE to go to Part III of this article.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog. Mr. Dellutri also writes for the firm's other blogs: www.faircreditreportingactblog.com and www.fairdebtcollectionpracticesactblog.combankruptcy blog.
