Rejection hurts. If you're like many people whose application for a mortgage loan modification has been denied, you don't know what to do. Should you rip the copper pipes out of your house, leave town and start a new life in Mexico, singing songs for loose change in sleepy tequila joints? Before you make that decision, remember that you can reapply for a loan modification.
What does the acceleration of Florida's five year statute of limitations mean? It means that the plaintiff within 5 years after the mortgage loan goes into default is the time that they can sue for foreclosure. But let's say that the court dismisses the action without prejudice. The plaintiff can then pick a more recent breach date (time that loan is in default) and restart the limitation clock. Only if the plaintiff does not file a new action within 5 years of the most recent breach will the Statute of Limitations prohibits the court from hearing the case. However, the 3rd District Court of Appeal in Florida has, since January 2015 a unique yet narrow interpretation stemming from the ruling in Deutsche Bank Trust Company Americas, v. Harry Beauvais, et al., No. 3D14-575 where it deems basically that a dismissal with prejudice merely resets the clock. Please note that there are 5 District Court of Appeals in Florida. Therefore, the jurisdiction your home is in is also a factor.
It is important to know that:
- Acceleration is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions.
- The five year Florida statute of limitations period begins when the lender files its first action.
- Only valid mortgage notes can go into foreclosure.
- Only a dismissal with prejudice stops the clock for purposes of the Statute of Limitations.
Paying off your mortgage faster may not be your goal when you first buy a house, but after a few years your financial situation may change. If you have more income than you did when you first bought the house, you might consider paying off your mortgage early.
New rules will provide homeowners and consumers shopping for a home mortgage with new rights and greater protection from harmful practices. These rules should eliminate or sharply reduce the runarounds and painful surprises that hurt so many homeowners during and after the financial crisis.
By John Voket
There is no better gift to give yourself this holiday season and in the New Year, than your own home - preferably owned outright. With the hope of getting consumers free and clear of their mortgage debt sooner, we tapped Durham, N.C. REALTOR® Bernice McNutt who blogged recently with these tips on how to pay down that homeowner's debt:
1. Accelerate bi-weekly payments - Instead of paying your mortgage on a monthly basis 12 times per year, McNutt says pay your mortgage every two weeks for a total of 26 payments each year. A $300,000 mortgage with a monthly payment and three percent debt service over 25 years will cost $125,920 in interest. Increase to accelerated bi-weekly payments and shave nearly three years off of your schedule, and save $16,059 in interest.
The Imploding Housing Market
According to an article in CNN Money, the number of foreclosures reached staggering levels in 2007 with 405,000 homeowners losing their homes. Based on the previous year's numbers, repossessions in 2007 were up an astonishing 51%. Yet, the situation continued to worsen with December's foreclosure numbers skyrocketing to 97% over the previous December's filings. For the year 2007, the total filings, which included auction sale notices, default notices, and bank repossessions, towered to an unimaginable 75% over the filings in 2006. Needless to say, the housing market and the nation's economy were in dire straits.
By John Voket, RISMedia Columnist
In a previous segment, I touched on several options for mortgage holders who are underwater. Then I ran across some particularly timely information courtesy of Anna Kerr of Refinanceitt.com, an online refinance loan company in Schaumburg, SC.
Kerr says if you are lacking behind in the mortgage and are not able to qualify for loan modification or some other kind of payment, you should opt for mortgage modification.
Home loan modification permits the consumer to interact with the lender and avail the desired loan terms and conditions. According to Kerr, you can state your preferences, which will enable you to pay the loan with ease and comfort.
She says chances are the lender will either decrease the mortgage modification rate, which will in turn decrease your payment per month, or give an extension in the loan term and be assured that the dues are included in the main balance of the loan.
Kerr says you begin by calling up the lender or the present mortgage service provider who has been given rights by your lender. Before contacting your lender, however, keep in mind three important things.
In the wake of the recent economic downturn, more homeowners than ever are still facing foreclosure. If you and your family are struggling to keep up with mortgage payments and fear being served a notice of foreclosure, or if you have already been served a notice of default, and are searching for a way to keep your home, loan modification might be your best opportunity for a new beginning. If you have contacted your lender and they have offered a loan modification package, depending on your situation you may either be denied, offered a trial loan modification package, or be approved for a permanent loan modification package.
Mortgage Shopping 101
Making Sense of the Mortgage Market
Shopping for a mortgage can be time-consuming and difficult for homebuyers, especially in today’s market where many buyers don’t know where to begin. The Federal Reserve Board has put together the following tips so that you can make sense of the mortgage market and be sure you are getting the mortgage that is right for you.
David Ramos is one of the nation's foremost experts in home loan modification. He has helped over 5,000 homeowners stay in their homes, and now works with lawyers to save homeowners as Operations Manager at Amerihope Alliance Legal Serviceswhich is a law firm that concentrates on foreclosure defense. Today, I asked him about what the government should do to help homeowners.
Interviewer: If you were President, what is the one thing you'd do to help homeowners who need a home loan modification?
David Ramos: “To understand the changes I would make, you need to first understand what the situation in the loan modification industry is today. Before Wall Street got involved with home loans, the loan modification system was a lot more simple. If a client's mortgage was with Chase Bank, for example, then we would just call the bank directly and work with them. When subprime lending was in vogue and Wall Street became involved with home loans, loans were no longer owned by single banks, they were often owned by groups of investors who purchased them on the secondary market.
