Dodd-Frank Act – a primer from Korte & Wortman, P.A.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (known by the common term of the Dodd-Frank Act) has had a profound effect on lending practices here in Florida, particularly since the Mortgage Reform and Anti-Predatory Lending Act section (Title XIV) was enacted early in 2014. This groundbreaking piece of legislation is meant “to assure that consumers are offered and receive residential mortgage loans on terms that reasonably reflect their ability to repay the loans and that are understandable, and not unfair, deceptive or abusive,” according to its creators.

Part of this legislation’s mission is to amend both the Truth-in-Lending Act (“TILA”) and the Real Estate Settlement Procedures Act (“RESPA”). The Dodd-Frank Act requires that a lender in a residential owner-financed transaction must determine at the time credit is extended that the buyer/borrower has a “reasonable” ability to repay the loan. If the lender did not properly investigate your credit worthiness, your lender could be subject to fines and other penalties.

Therefore, if you have entered into a mortgage contract since the beginning of 2014 and are now facing foreclosure, bankruptcy, or some other form of financial distress that is threatening your property, then you need to seek out a knowledgeable defense lawyer to discuss all of the legal options you have available to you.

In addition, you may be entitled to refunds or other financial benefits if your loan did not disclose many different pieces of information to you, including deficiencies in the home like Chinese drywall; hidden penalties for prepayment of your mortgage; or other information that may have altered the value of the home.

At Korte & Wortman, P.A. we have attorneys who are well-versed in the Dodd-Frank Act mortgage reform legislation that was enacted in 2014. We have already been able to help clients navigate this legislation to get the money they deserve from lenders who have tried to take advantage of them in the form of fees, hidden charges and other predatory lending practices.

Our South Florida firm is one of the few in the state that handles cases involving legislation in the new Mortgage Reform and Anti-Predatory Lending Act.

To learn more about the Dodd-Frank Act please visit this page on our website at http://foreclosurefactor.com/the-dodd-frank-act/ or call us directly at (561) 544-7071 for foreclosure prevention or defense against any lender who may have violated your rights under the rules of the Mortgage Reform and Anti-Predatory Lending Act throughout the State of Florida. We can help you TODAY!

Answers to some of your important questions regarding Pre-foreclosure and Foreclosure issues in Florida

Q.: What is a foreclosure?

A.: When a secured creditor, usually a bank, attempts to recover monies owed to them based on a promissory note by selling the collateral. In more simple terms you have probably borrowed money from a bank or mortgage company in order to purchase or refinance a home. In exchange for lending you the money, you made a promise that if you could not pay them back they could take the house back.

Q.: Can the bank just come and kick me out of my house?

A.: No. Only an order of the court can force you to leave your home. Ultimately you may be evicted but there are procedures within the court system that the mortgage holder must follow first for the foreclosure and then another set for the eviction.

Q.: What are some of the pre-foreclosure steps I need to be aware of?

A.: In Florida, the pre-foreclosure timeline is as follows:

1. You are late with payments
   1. The process begins when you, the holder of the mortgage, are late with payments. You are still living in your house at this time. Here is what happens before the legal timeline for foreclosure starts ticking.

2. Mortgage and Note
   1. Two of the documents that you signed when you purchased your home were the Mortgage and the Note. The Mortgage states that your property is security for the debt owed to the bank. The Note is your promise to pay. The Mortgage is the legal document the bank will use to reclaim your home if you default in your payments.

3. Notice of Default
   1. When you fail to make the payments as promised, the mortgage lender will file a civil action Complaint against you by sending you a written Notice of Default. Basically, this notice means you have defaulted on the signed contract – the mortgage agreement – on your home.

The Notice of Default marks the line of demarcation between pre-foreclosure and foreclosure.

Q.: How long does it take to foreclose on a property in Florida?

A.: Depending on the court schedule, it usually takes approximately 180-200 days (6 to 7 months) to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy. It will also depend a great deal on your mortgage holder and how aggressively they pursue your case.

Q.: Once the foreclosure process starts is there anything I can do to stop it?

A.: Yes. If working from your first late payment there are at least 10 or 20 different ways to resolve the situation. The longer you wait, however, the more some of these options will become unavailable.

Q.: At what point will I have absolutely no options left?

A.: Never. You have not lost until you have decided the fight is over.

Do not let foreclosure proceedings against you go uncontested. You do have rights, right up until you decide the fight is over. Korte & Wortman, P.A. is a law firm specializing in all aspects of real estate law, including pre-foreclosure and foreclosure proceedings. Please contact us directly if you have any questions or current legal issues in any type of real estate transaction. Our home office is based in West Palm Beach, at 2041 Vista Parkway, Suite 102. You can call us at (561) 544-7071, stop in to our office, email us at vdinapoli@kwlawfirm.com or come to our website at http://www.foreclosurefactor.com. Our firm represents clients throughout the state of Florida and across the eastern seaboard. We also have offices in Sunrise and Clearwater, Florida.

We look forward to helping you get the best settlement possible in all of your real estate transactions!