Offices in Broward, Palm Beach, Martin, and St. Lucie Counties

Fleysher Law Blog

Florida Foreclosure, Loan Modification, and Bankruptcy Attorney

The Debate Over Mortgage Principal Reduction

Reducing mortgage balances is an idea that could be helpful to or cause more default among borrowers. Some experts feel that widespread principal reductions may drive defaults much higher. Also, taking this step may tighten lending by forcing banks to offer “price protection” to borrowers. The data shows there is essentially no difference in re-default rates among delinquent borrowers given only payment reductions and those also offered smaller mortgages. About

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HOAs Prodding Stubborn Foreclosures

HOAs Prodding Resistant Banks to Act on Distressed Condo Units

In addition to homeowners, Home Owner’s Associations (“HOA”s) are victims of the foreclosure crisis as well. When homeowners stop paying maintenance fees or assessments, associations start facing serious problems. Some associations have more than 50% of their units delinquent. Under Florida law, HOAs can foreclose on owners for the delinquent fees and can take title that way. This is not always helpful because the existing mortgage goes with it and

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Beware of Cross-Collateralization when dealing with Credit Unions

A cross-collateralization clause makes the collateral that secures the car loan (the car) serve as collateral for all loans the credit union has made or will make to you. This transforms any unsecured debts that you have with that credit union (i.e., a credit card) into secured debt. It is often the case that the debtor has no idea that this cross-collateralization exists until after default or during bankruptcy.

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HOAs Prodding Stubborn Foreclosures

Can my Homeowner’s Association (HOA) foreclose on my home?

Many borrowers that have stopped making their mortgage payments are unsure as to whether or not they should continue making payments to their homeowner’s association, commonly referred to as their HOA. My clients that are facing foreclosure often ask what the consequences are for not paying the HOA and are often surprised with my answer. With very few exceptions, I recommend paying your association in full and on time. According

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When is the right time to file for Bankruptcy?

This is one of the most frequently asked questions that my clients need answered. The truth is, like most answers to legal questions, it depends… Creditor Harassment / Collection Calls: If the primary force driving you to file for bankruptcy is harassing phone calls, letters, and e-mails from your creditors, then chances are the sooner you can file the better. Filing for bankruptcy invokes the automatic stay which instantly prohibits

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What are the alternatives to Bankruptcy?

Your right to file for bankruptcy and discharge your debts is a very important and very powerful right. It can only be used once every 8 years and should not be exercised unless absolutely necessary. The general rule of thumb for deciding whether you should file for bankruptcy is this… if your unsecured debts are equal or greater than your annual salary, you should file for bankruptcy. This general rule

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What Happens to my 2nd Mortgage/Home Equity Loan in Ch. 7 Bankruptcy?

Many clients are concerned with what will happen to their second mortgage (also referred to as a Home Equity Loan, Home Equity Line of Credit or HELOC) during and after Chapter 7 Bankruptcy. In general, 2nd mortgages or HELOCs are loans that are given to property owners. These loans are secured by the value of the property above the amount of the first mortgage. The difference between what the property

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