First Legal, P.A.

Tips For Choosing a Foreclosure Attorney in Miami

Thu, 17 Nov 2016 16:56:00 GMT

Need foreclosure help? The choice of a foreclosure lawyer is one of the most important decisions you can make early on in the process.

A good foreclosure attorney is essential in guiding you through foreclosure defense in a way that’s efficient and protects your interests.

Most people who are considering their foreclosure options are “first time” legal consumers. For this reason, it’s important to take a thoughtful approach. Of course, your research can always start on the Web, but it’s also important to speak to attorneys in person. The following tips can help you get started.

Organize Your Paperwork

The first and most important step in the early going is to analyze where you stand in regards to your lenders. Your attorney will want to see all paperwork about your mortgage, including your complete payment history and any correspondence the lender has sent you. Attorneys can begin reviewing this information early to assess how they can help you.

Compare Your Alternatives

As in many professions, lawyers are all different. Each one has particular specialties and interests, so be sure you select someone who is confident and competent in the area of foreclosure. You should choose a lawyer who is able to give full and satisfying answers to all your questions. Good attorneys should inspire confidence, as they’ll be working with you for months.

Get Prepared for Court

Attorneys will discuss many different options with you before settling on a strategy. This might include loan modification, loss mitigation, or even taking the lender to court. In these situations, it’s important to hope for the best, but prepare for potential challenges. Sometimes, the only way to truly defend your rights against a predatory lender is to fight them in open court.

Consider Bankruptcy

If all else fails, the right foreclosure attorney should be able to help you to structure and pursue a fair bankruptcy . Bankruptcy does do significant, though temporary, damage to your credit – but it’s second to none in giving you a fresh financial start. Through Chapter 13 bankruptcy, you will be able to keep your home while enacting a long-term plan to bring liabilities current.

For Foreclosure Law Florida Trusts, You Can Count on First Legal

A structured, efficient, and effective approach to foreclosure defense is essential to your future. To get immediate help from experts who truly understand your situation, call First Legal : (954) 998-1488. We look forward to helping you.

The post Tips For Choosing a Foreclosure Attorney in Miami appeared first on First Legal, P.A. .

Using Bankruptcy When Facing Foreclosure

Thu, 17 Nov 2016 16:46:00 GMT

Use Bankruptcy When Facing a Foreclosure in Miami, Florida

Stopping foreclosure means teaming up with an effective, knowledgeable legal team. With the right legal help, many foreclosure options are available to you even if you are severely behind in your payments. These can include things like loan modification, mediation, and more.

Bankruptcy is always considered a last resort when dealing with foreclosure .

When it comes to bankruptcy laws Florida residents can benefit from, however, there are several options. It is often possible to protect your property and many of your assets throughout this process.

This is a powerful tool, because entering into proceedings will halt most collection activity — including foreclosure. Creditors won’t be able to pursue the matter further until the bankrupt individual has gone through all related court hearings and adjudication.

There are two different options to consider:

Chapter 7 Bankruptcy in Miami

Chapter 7 bankruptcy is typically effective in delaying foreclosure. However, choosing this type of bankruptcy leaves you at an increased risk of eventually losing your home. During a Chapter 7, all unsecured debts are eliminated. This is an ideal option for someone facing financial difficulties as a result of credit card debt, for example.

Although it is still possible to ultimately suffer foreclosure in Chapter 7, you are left with much greater financial flexibility. Eliminating unsecured debt typically leaves the bankrupt individual with greater disposable income and an easier time getting current on mortgage debts.

Once this is done, the threat of foreclosure will eventually pass.

Chapter 13 Bankruptcy in Miami

Chapter 13 is typically preferred when maintaining legal control over a mortgaged home is the biggest concern. Under Chapter 13, individuals are provided with expanded opportunities to prevent the worst consequences to their credit and finances. Over a period of three to five years, an income-based budget is followed that allows for reduced, regular payments to trustees.

These trustees, in turn, are responsible for paying outstanding debts. Secured debts, such as tax obligations and mortgage payments, are always considered first. Credit cards, medical bills, and other unsecured debts are paid last. Since this typically leaves the bankrupt person with very little free cash, debts can often be settled for a few pennies on the dollar.

At First Legal , we’re the experts on bankruptcy foreclosure in Florida . To find out more about your bankruptcy options, contact us today for a free case evaluation. We look forward to helping you as we’ve helped people all across the Sunshine State to fix their finances.

The post Using Bankruptcy When Facing Foreclosure appeared first on First Legal, P.A. .

You Can Still Save Your Home After You’ve Received a Foreclosure Notice

Mon, 14 Nov 2016 10:00:00 GMT

Foreclosure is a slow process, and banks can take anywhere from a few months to a year or more to auction off your home. In Florida (specifically Miami-Dade, Broward, & West Palm Beach), depending on the court schedule, it usually takes approximately 180-200 days 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 the mortgagor and how aggressively they pursue your case. Most creditors do not begin foreclosing until the homeowner is two to three months behind on their mortgage payments. Once you receive formal notice of an auction date, however, the time you have to save your home is drawing to a close. Fortunately, foreclosure doesn’t have to be inevitable. You still have options to prevent the foreclosure even if the auction date is mere weeks away. A lawyer who knows his way around the foreclosure defense laws can help you through the process.

Even after the lender gives notice of foreclosure, the homeowner has some time to consider alternatives. The most important thing you should do when a foreclosure sale date has been set is to seek legal help from an experienced foreclosure defense attorney . A competent, and experienced lawyer can help you postpone or even reverse a foreclosure using a variety of tools including:

1. Loan Modification

2. Deed-in-Lieu of Foreclosure

3. Filing for Bankruptcy

1. Loan Modification

Modifying your loan is one option you have to stop a foreclosure. Your attorney can negotiate on your behalf with the bank to modify your loan and thus help you save your home. In most cases, your loan modification is likely to be accepted if you show that you are willing and able to pay back the money you owe.

2.Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is a deed given by a property owner to the mortgage holder. It’s given instead of going through the foreclosure process and helps avoid going through litigation. It is usually an agreement by which a title is transferred to the mortgage holder and typically the borrower/property owner is relieved of any payment obligation under the note.

3.Filing for Bankruptcy

Should all of the aforementioned alternatives fail, bankruptcy may help in several different ways. Once you file bankruptcy, either Chapter 13 or Chapter 7, (please have a look at our blog post on the distinctions between Chapter 13 and Chapter 7 bankruptcy) the court automatically issues an Order for Relief. This order grants you an “automatic stay”, that directs your creditors to immediately cease their collection attempts. So, if a foreclosure sale has been scheduled for your home, it will be postponed, by law, until the bankruptcy is finalized. This usually takes about three to four months.

A looming auction date is always stressful, but your attorney will help you negotiate with your lender. The aforementioned foreclosure alternatives should be explained carefully and executed deftly with your attorney.

The Pitfalls Of Obtaining a Loan Modification and The Benefits of Getting a Qualified Attorney to Help You in The Process

Loan modifications can be very difficult to obtain, and lenders are under no obligation to accept your modification terms or modify your loan agreement at all. Loan Modification furthermore is a process that requires meticulous attention. Your application can fall through the cracks if you don’t have an experienced advocate monitoring your lender and holding them accountable. An attorney in loan modification law, who has experience with the courts and the modification process in Miami-Dade, Broward and the Palm Beaches can help you and advocate on your behalf.

The rules for loan modifications are unclear, and the results can be unpredictable. Modification programs have specific guidelines that need to be met and if you don’t know them you might not be successful. For example, The Making Homes Affordable Program allows homeowners to apply to their mortgage lender to renegotiate the terms of their loan under the program. Monthly payments can be decreased by lowering interest and extending the loan term; mortgage lenders can but are not required to reduce the principal of the loan. Loan modifications are strictly voluntary and a mortgage lender can reject, deny or fail to respond to a borrower completely. Lenders may claim they did not receive your paperwork, and it is not uncommon for a borrower to find himself/herself constantly resending everything to the lender. Clients who have attempted to talk to their lenders prior to seeking representation from an expert in loan modification law, have stated that sometimes the bank is even unclear in communicating to the borrower which entity actually controls their loan. This can amount to frustration and financial loss to a borrower who has not sought help from an experienced attorney.

Applications are complex and need to be completed in their entirety and furthermore, they must be 100% correct before the bank will even consider your application. However, mortgage servicing rules, mandate that a lender cannot start a foreclosure until 120 days after the borrower defaults on the loan. This time requirement is intended to provide a borrower with enough time to seek a mortgage modification, before the foreclosure. An experienced attorney working for you will know that the lender can’t start the foreclosure process while the application is pending. A lender who starts the foreclosure process prior to 120 days is in violation of the rules and is subject to the protective measures they provide for the borrower. Under these circumstances an experienced attorney is essential in helping an embattled borrower to stop or slow a foreclosure. This is a fraction of the information that a borrower needs to know before attempting to navigate this very complicated space.

An attorney can help you fill out paperwork and make sure you present your situation in the best light possible to the lender. This will help you avoid the pitfalls, saving you money and time.

The post You Can Still Save Your Home After You’ve Received a Foreclosure Notice appeared first on First Legal, P.A. .

Circle of Trust: Who You Should Consult with Before, During and after Filing for Bankruptcy

Mon, 07 Nov 2016 10:00:00 GMT

If you are a Florida resident contemplating either a Chapter 7 or Chapter 13 bankruptcy, there is a lot to consider before making your decision. Having trusted professionals, like those at First Legal, as your sources for advice can be invaluable as you review your finances to determine whether or not this is the right decision for you.

Once the decision is made to move forward with filing for bankruptcy, having an experienced guide to help you navigate the process can prevent costly errors. Working specifically with an experienced bankruptcy lawyer in Florida, like those at First Legal, can help ensure you are compliant with all local and state laws as well.

Creditors vs. Bankruptcy Lawyers

Before filing for bankruptcy, it’s likely that you’ve mostly been in contact with your creditors. These creditors, generally, do not want you to know about your bankruptcy choices as it is in their best interest to keep you in debt. Creditors would prefer to continue profiting from every cent they can obtain from your estate. It is up to you to step out of the vicious cycle and seek assistance.

A knowledgeable bankruptcy attorney is the greatest asset you can have throughout your bankruptcy filing process. The lawyers at First Legal are experienced with the intricacies of finance law and adept at providing you with legal advice tailored to your individual needs, including how to prepare your paperwork quickly and effectively. We can also assist in talking with your creditors.

Take a New Step Forward by Filing for Bankruptcy

Filing for bankruptcy is not something of which to be ashamed as an average of one million Americans file for it every year. The reasons are varied, but for many individuals and families, unexpected medical expenses, job loss, and family catastrophes have resulted in an overwhelming financial burden.

Consider calling an attorney for help with bankruptcy if:

You have multiple credit cards in which you can only make the minimum payments
Debt collectors and creditors constantly call your home, work, and/or cell phone
You use credit cards to make payments on existing debts and/or pay for your basic necessities

If any of the above describes your current financial situation, it may be time to file for bankruptcy. Please contact First Legal today to discuss your options.

The post Circle of Trust: Who You Should Consult with Before, During and after Filing for Bankruptcy appeared first on First Legal, P.A. .

Steps to Take After Bankruptcy

Mon, 31 Oct 2016 23:49:00 GMT

Congratulations on taking the first big step toward a new and better financial life! Bankruptcy is designed to give those in need a second wind – an ability to discharge the worst debts holding them back so they can regain control of their finances overall.

Filing for bankruptcy is just the beginning of this financial process.

Consider the following steps when rejuvenating your financial health:

Collect and protect all paperwork . Your lawyer should send you a copy of your bankruptcy petition in its entirety. This is a large document (generally about 50 pages) containing pertinent financial information, including details regarding your debts and assets. You should also have a copy of your debt discharge and any other documents filed in reaction to your case. All of these documents can come in handy in the future when you need to speak with new lenders about new credit options. Collect and store your files in a safe, moisture-free place.

Start a budget and regularly review it . Sit down and map out your income and expenses. Create financial goals for the upcoming month, year, and five-year marks. Going through this process will help you better understand where you stand financially and it can help you prepare for the future.

Prepare for unexpected expenses . Set yourself up for success by preparing for sudden, unplanned costs. Emergency funds are an essential tool for protecting against excessive credit card use that can quickly place you in staggering financial debt. Use this fund for the unexpected car repair, medical issue, or other unforeseeable event.

Consider new credit . Consider your credit options, but do so responsibly. Don’t get carried away. Credit has become an integral component of modern living, and you’ll be able to rebuild your credit following a bankruptcy by responsibly using new credit allowances. We recommend beginning with a small credit limit or card that can be paid in full every month.

Routinely check your credit reports . Let the dust settle from your bankruptcy filing in Florida for at least three to six months. Request a credit report every six months afterwards to see where you stand, what creditors are saying about you, and to ensure that all debt is being discharged correctly.

First Legal

Contact First Legal today for more information on how to regain control of your life and enjoy a strong financial future after bankruptcy. We have helped hundreds of Florida clients, just like you, towards a brighter financial future.

The post Steps to Take After Bankruptcy appeared first on First Legal, P.A. .

Ch. 7 & Ch. 13: BANKRUPTCY BY THE NUMBERS

Thu, 06 Oct 2016 22:51:00 GMT

Bankruptcy is serious stuff, and complex too. A debtor deciding whether or not to declare bankruptcy likely has some idea of the benefits and probably knows a bit about the riskier factors. Filing will affect your future credit, and your purchasing options. It can however, improve your short-term quality of life considerably by freeing you from harassing creditors.

But did you know there are options in filing for bankruptcy? An experienced bankruptcy lawyer in your area ( Miami-Dade, Broward, or Palm Beach County ) is a necessary guide, because the journey from declaring bankruptcy to post-bankruptcy financial health is not a journey to undertake alone.

Let’s start with a preliminary and skeletal understanding of bankruptcy itself. In a chapter 7 bankruptcy case, the debtor is allowed to retain all the property they own that is “exempt.” The Florida law determines how much real estate and personal property a debtor may retain as exempt property. All non-exempt property owned by the debtor is sold by a bankruptcy trustee and the proceeds of the sale are given to the creditors.

Chapter 7 bankruptcy requires that your income be below the state median for a family of similar size. Under certain circumstances, you may also file Chapter 7 bankruptcy if your income is above the state median but that income is insufficient to work out a repayment plan as required when filing Chapter 13 bankruptcy (discussed below). Chapter 7 debtors who are assisted by their bankruptcy lawyer, may be able negotiate with the trustee and pay an amount sufficient to settle the trustee’s claim while allowing the debtor retain the non-exempt assets.

Your bankruptcy attorney should advise you that if when a debtor has primarily consumer debt, they must complete a “Means Test”, which takes into consideration the debtor’s income for the six months prior to the bankruptcy filing along with certain allowable expense deductions. A debtor who passes the Means Test is eligible to file Chapter 7 bankruptcy whereas a debtor who fails the Means Test is required to file Chapter 13 bankruptcy.

Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who can pay back at least a portion of their debts through a repayment plan. If you make too much money to qualify for Chapter 7 bankruptcy , you may have no choice but to file under Chapter 13 .

Chapter 13 gives you a chance to pay a portion of your debts back under a structured repayment plan. Your experienced bankruptcy attorney will advise you that Chapter 13 is the best option to stop repossessions and foreclosures.

A chapter 13 debtor will exhibit the following characteristics.

Stable income
Ability to commit to a long term financial plan

A Chapter 13 plan requires a debtor to stay on a cash budget for a 3 to 5-year time period. Some debtors can handle that responsibility easily, while others find it difficult to stick with a plan that requires such discipline. Your bankruptcy attorney will want to investigate each of the aforementioned characteristics and determine where you, the debtor, stands in comparison. The stability of a debtor’s income can appear in practice like future-casting, and resemble guess work based on the debtors past financial history. However, the best candidates/debtors will demonstrate a consistent work history and/or be persuasive about their future job prospects. Your Attorney will use both subjective and objective analyses to determine your qualifications.

It is important for your bankruptcy attorney to have a frank and honest discussion with the debtor to determine whether Chapter 7 or Chapter 13 contains the best means of protection for you.

The post Ch. 7 & Ch. 13: BANKRUPTCY BY THE NUMBERS appeared first on First Legal, P.A. .

An Investors Invitation To The Previously Exclusive Loan Modification Party

Sat, 01 Oct 2016 23:11:00 GMT

If you’re the owner of rental property in Dade, Broward or West Palm Beach County who is facing the threat of foreclosure , there are issues unique to investors, that a lawyer practiced in loan modification law can help you to become aware of. Furthermore a qualified loan modification attorney can assist you in making your properties profitable again with positive cash flow. Let’s start with the basics:

An investment property is a property that is:

not your primary residence, and
is purchased in order to generate income, profit from appreciation, or to take advantage of certain tax benefits.

Rental property is a type of investment property.

Foreclosures have been a common occurrence in Miami-Dade, Broward, and Palm Beach housing since the 2008 housing crisis. Consequently, loan modification programs were created as a means for underwater and otherwise struggling homeowners to avoid losing their homes. The standards that HAMP put into place have helped to assist the aforementioned homeowners in Florida, as well as homeowners nationwide.

A modification adjusts the current terms and conditions of your mortgage loan. Typically, the lender agrees to lower the interest rate or lengthen the repayment term and bring your monthly payments down to something significantly more manageable.

Loan Modification in Miami-Dade, Broward, and Palm Beach has traditionally only been available to help borrowers with mortgages secured by their primary residence. As of 2012 however, the federal government has expanded its modification program (HAMP). Changes to HAMP have extended eligibility to include owners of investment properties. These modifications include certain qualifying investment properties, that an experienced loan modification attorney who knows the South Florida mortgage landscape will be intimately aware of. Non-participating lenders may also offer modifications for rental property, with their own sets of guidelines that your loan modification attorney will outline for you. For example, the borrower might want to modify a loan to avoid foreclosure or a short sale due to negative equity on the investment property. Your lawyer will advocate on your behalf and advance these issues among others, as he assists you in qualifying for the appropriate loan modification plan.

For your property to qualify for a modification through the HAMP program, there are basic eligibility requirements. First, the property has to be occupied by a tenant that considers the home his primary residence, or the property must be completely vacant. Your loan modifications attorney will advise you that you’ll also need to sign a written statement. The statement typically avers that you intend to rent the property out for at least the next five years and that you will try to rent it out as soon as possible if it is in fact, vacant.

Delinquent loan payments, financial hardship (you must be at least two payments behind) and sufficient (documented) income to support the requisite modified payment system are factors that will help you qualify for a loan modification program. Additionally, there are loan amount thresholds for investment properties that your loan modification attorney will be aware of. The time your mortgage was secured may also be an important factor. These limits are applicable whether the property is used as a rental property or as a primary residence.

If you don’t meet the requirements for HAMP, your attorney can negotiate with your mortgage lender to see if there are other circumstances (inadequate rental income, HOA assessments, taxes or property insurance arrearages) by which you may be able to justify a modification on the loan.

You’ll want to have your loan modifications attorney reach out to your lender to discuss your case-specific potential modification options.

The post An Investors Invitation To The Previously Exclusive Loan Modification Party appeared first on First Legal, P.A. .

When You Should Consider Contacting a Lawyer about Your Business Dispute

Wed, 21 Sep 2016 19:40:00 GMT

Business contracts are essential. By defining rights and responsibilities, a contract can stop a business dispute before it starts. However, sometimes a business dispute with a partner, vendor, or other party can happen despite a contract. In other cases, there may be no formal written agreement between the parties.

If your trust has been breached, it’s natural to pursue a strong response. That said, it’s important to take a look at the facts before you go to court. Even challenging disputes can sometimes be resolved through mediation instead.

Is it time to talk to an attorney about your business dispute?

Consider these questions:

Have You Tried Compromise?

In some cases, another party’s actions may be in bad faith, or might be so egregious they are impossible to correct through discussion. Many times, however, business owners simply wish to avoid going to court. Discussing the matter with the other party in a frank, open manner – ideally, face to face – can often resolve problems quickly.

Have You Made a Demand to the Other Party?

A formal demand letter is an important part of demonstrating to the court that you have taken all proper steps to manage the conflict. In cases where you’ve suffered monetary injury, the demand letter should state the amount and how you believe it was accrued. It should also outline when you expect the party to respond and what actions you’ll take if they do not.

Can You Collect a Judgment?

In virtually all cases, it’s important to determine what kind of damages you stand to recover if you win. For example, you might be able to prove that another party’s actions cost you money, but they might be bankrupt and unable to pay a judgment. Or, it may be difficult to prove you’re entitled to compensation for any number of reasons.

Is Small Claims Court Appropriate?

Every state has its own small claims court – also called conciliation court – that handles smaller cases. Here in Florida, small claims court s manage cases where the amount at issue is $5,000 or less. In these courts, representing yourself is common … though still inherently risky!

Business Law Florida Trusts: First Legal

Do you want help with business law for the legal experts Miami-Dade residents rely on? First Legal assists clients regularly with business disputes . Working with an experienced business attorney, you’ll have all the information you need to make an informed decision about your case. For more details, please call (954) 998-1488.

The post When You Should Consider Contacting a Lawyer about Your Business Dispute appeared first on First Legal, P.A. .

What to Take into Consideration for a Loan Modification

Wed, 07 Sep 2016 19:36:00 GMT

Would you like to adjust the terms of your loan to be more favorable to you? Many people believe that once they have taken out a loan, that’s it – they have no opportunity to change it again. No matter what size of loan you have, however, this doesn’t have to be the case.

The process of loan modification allows you to update the terms of your loan to deal with new realities. Maybe you’ve lost your job and will not be able to pay monthly premiums you once did. Or perhaps you’re facing temporary expenses that make it hard to pay your current loan.

Whatever the case may be, pursuing a loan modification is much better than simply going into default.

Loan Modification as a Way of Avoiding Home Foreclosure

Though there are many situations where a loan modification might be sought, avoiding foreclosure is the most common and the most serious. Most lenders wish to avoid foreclosure, since they will face significant legal costs and a much more complex process for collecting the loan balance.

When loans are modified through mutual agreement, everyone benefits. The homeowner has the opportunity to maintain the home at a lower monthly premium. At the same time, the lender faces none of the uncertainty associated with finding someone else to assume the mortgage.

Generally speaking, loan modification includes two key goals:

Make the new terms of the loan affordable for the lender
Collect as much of the original loan amount as possible

Because of this, the current homeowner actually has a great deal of leverage in the modification process. However, better terms and a smoother modification are possible by teaming up with an attorney who understands the contractual obligations and limits of the lender’s power.

What Options are Available for Loan Modifications?

In most cases, there are three major options for modifying a home loan:

Temporary or permanent reduction of the interest rate
Extension of the payback period, usually to 40 years
A deferral of principal, typically at 0% interest rate

Of these, principal deferral is the least likely. Most lenders do not have as much discretion to pursue this option because of fiduciary obligations to their shareholders. Also, it’s important to realize that loan modification is a long and complex process, even when the lender is cooperative.

Loan Modifications Florida Residents Stand Behind

If you’re looking for a loan modification lawyer that Miami-Dade locals trust, call First Legal at (954) 998-1488.

The post What to Take into Consideration for a Loan Modification appeared first on First Legal, P.A. .

What Happens When You Fall Behind on Your HOA Assessments?

Mon, 22 Aug 2016 17:47:00 GMT

A homeowners association, or HOA, is an organization responsible for maintaining common areas in a planned development. HOA assessments are collected from all residents on a monthly , quarterly or annual basis to cover maintenance expenses.

Before move-in, residents must sign Covenants, Conditions, and Restrictions (CC&Rs), formal documentation of rights and responsibilities. In many cases, these CC&Rs give HOAs sweeping power to aggressively collect debts.

HOAs can take action even if you owe only a few hundred dollars in HOA assessments.

How Do Homeowners Associations Seek Unpaid Dues?

All HOAs are different, but recent years have given them a reputation for unfair and often unscrupulous behavior. If you’re having trouble paying HOA assessments, it’s vital to understand what might happen during an attempt to collect.

Collection efforts typically progress like this:

Issuing a Demand Notice

A demand notice is a formal request for repayment of a debt that indicates its amount, any penalties, and how the debt was accrued. These are typically sent by mail, though you may also receive a phone call. Demands usually include information on the next steps the HOA may take.

Offering a Repayment Plan

A repayment plan may be offered in the demand notice. If you feel you may be able to repay the debt under appropriate terms, it is a good idea to contact the HOA and ask about plans. Not all HOAs will be proactive in offering one.

Removal of Privileges

Association fees are directly related to maintaining property amenities. Since the HOA can claim you haven’t paid for these assets, you may lose access to them. This can include things like pools, gyms, and clubhouses.

Placement of a Lien

CC&Rs typically empower HOAs to place a lien on the property. This will bar you from selling or refinancing your home, and is a precursor to foreclosure. Many HOAs will record the lien with the county to make it a matter of public record, even when the law does not require it.

Foreclosure and/or Lawsuits

If the CC&Rs and state laws allow, the HOA may move to foreclose on your home . When this is impossible, a lawsuit becomes likely. Courts can garnish your wages or bank accounts to compel you to pay your HOA fees and late charges.

First Legal P.A in Miami, Florida

Most people don’t know their HOA Florida or HOA Miami rights. Assessment debts can be dismissed by courts if they are found to be invalid or inflated by large penalties. If you are having HOA issues, contact First Legal at (954) 998-1488.

The post What Happens When You Fall Behind on Your HOA Assessments? appeared first on First Legal, P.A. .

Deficiency Judgments: Bank Took your Home, Now They are After Your Money, Too…?

Wed, 10 Aug 2016 17:31:00 GMT

Foreclosure Dollars

Definition: A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full.

Example: Bank forecloses on, then sells your home, the sales price is insufficient to pay off the bank (mortgage lender). For instance, the mortgage balance was $200,000, but the house sells for $100,000 at the time of the court-ordered sale, the bank can then ask a judge for permission to go after the borrower for the difference, or the “deficiency,” of $100,000.

In the aforementioned scenario, borrowers are completely blind-sided. As it happens, Dade/Broward and West Palm Beach Counties have seen a significant number of deficiency dispute defense cases in the last 6-7 years. A competent foreclosure defense attorney is essential during these critical stages.

The deficiency action can be brought by the primary lender, a second mortgage holder, a mortgage insurance company or a government entity like Fannie Mae or Freddie Mac.

Depending on when you borrowed the money and when the foreclosure case was filed, in Florida, lenders may have from one year up to five years to file a deficiency action, meaning there is more than enough time for the borrower to get the feeling that they are past the process. However, once a judge grants the deficiency, creditors can come after you up to 20 years later. The claim can even be pursued if the borrower moves to a state with more conservative foreclosure laws.

After losing a property in foreclosure, it’s not unusual for borrowers to ignore calls and letters, and only be alerted to their exposure to potential deficiency litigation and subsequent judgments after their wages have been garnished. If the creditor had taken a default judgment against you and you were unaware of the deficiency case, or were unable to defend yourself, you may be able to get the court to vacate (remove) or modify (change) the deficiency judgment.

You must act quickly and have acceptable legal and factual reasons for this request. For example, the creditor waited too long to take a deficiency judgment and violated the statute of limitations, which is often shortened in mortgage deficiency actions.

Alarmingly, the process can allow for seemingly unrelated parties to show up in court, seeking the right to collect on a mortgage debt. A foreclosure Lawyer who has examined the mortgage documents can challenge on many fronts including whether the party seeking the right to pursue the borrower even has the right to collect.

You want the best representation possible – no one should find themselves at the mercy of a lender as you are attempting to decipher complex legal jargon.

The post Deficiency Judgments: Bank Took your Home, Now They are After Your Money, Too…? appeared first on First Legal, P.A. .

Credit Repair v. Bankruptcy: Which is the Right Choice for You?

Wed, 10 Aug 2016 17:27:00 GMT

TV and radio are inundated with advertisements extolling the virtues of credit repair. You can’t turn the corner without seeing banners promoting credit repair. These ads are willing to promise you the fiscal equivalency of a Willy Wonka Golden Ticket to credit salvation.

These days, credit repair agencies are ubiquitous in Broward, Dade and nationwide. They are extremely skilled at luring you into a false sense of security. Empty promises are made, whereby credit repair will solve all of your problems and finally give you a peaceful respite from those harassing creditors.

Credit repair may increase your credit score if done appropriately, but when a disputed item is removed from your credit file, you still owe on the debt. Credit repair agencies can’t take the place of a Lawyer on your team. An increased credit score will not stop wage garnishments, collection calls, or bank attachments.

Bankruptcy can potentially wipe out your obligation to pay the debt. To clarify further, credit repair agencies simply send a letter to the reporting agencies challenging the accuracies of your credit report. For example, they will point out that a balance on a debt has already been paid, a reported account is not owned by you, or the reporting party no longer owns the debt.

Once challenged, the credit agency contacts the merchant for verification. If said merchant cannot verify the accuracy of the entry, it must be removed. Thus, your credit score may increase, allowing you to take on more debt. That’s the essence of what they can actually deliver.

The right time to consider credit repair is after filing for bankruptcy, not as an alternative to it. If you find yourself struggling with minimum payments that are still too high to make or devastatingly high interest rates, and increased late payments for a debt that is actually owed, bankruptcy may be your only legitimate option.

Bankruptcy might hurt your credit score for a period of time, but it is usually the most effective method to release individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor.

Excluding cases that are dismissed or converted, individual debtors in Florida receive a discharge in the vast majority of chapter 7 bankruptcy cases. However, keep in mind that there are many exceptions. Bankruptcy is a complex process and can be subject to dispute. That’s why it is absolutely essential to your interests that you contact a competent lawyer before filing to discuss the scope of the discharge.

A fresh start is possible and filing for bankruptcy will not forever ruin your ability to receive credit. Sometimes, bankruptcy is the only long-term solution to resolve your credit woes.

The post Credit Repair v. Bankruptcy: Which is the Right Choice for You? appeared first on First Legal, P.A. .

When a Business Contract is a Good Idea

Mon, 08 Aug 2016 17:41:00 GMT

In the United States, an amazing number of businesses launch each year – over 6.5 million , according to Forbes. It’s important for all new business owners to protect their legal rights!

For many people, “their word is their bond.” Being known for honesty can create a sterling business reputation. Still, there’s more at stake in any business agreement than reputation – if a deal goes sour, your enterprise could be at risk.

Because the stakes are very high, it’s critical to recognize when a business contract is preferable to a “handshake.” A verbal agreement is legally binding, but it leaves business owners at a disadvantage: How can you prove what was agreed upon?

In many cases, you can’t… even if you have a witness.

When should you opt for a business contract instead?

When the Terms of the Agreement are Detailed, Always Write Them Out

Oral agreements are best for activities that are simple and immediate. If you agree to trade your toaster for your friend’s microwave, the deal can be enacted immediately. The contract is validated since both parties take action promptly, accepting the traded goods.

This is not the case in most business-to-business agreements, so terms must be much more precise.

If requesting a formal business contract is impossible, you still have opportunities to protect yourself. Correspondence, including hand-written letters, emails, and faxes, can be used to establish the details of your oral agreement in court. Once an oral agreement is concluded, consider following up with a “thank you” letter that restates the terms clearly.

The Law Requires Some Contracts to Be Written

Most agreements can be oral. However, each state has a statute of frauds clarifying which contracts must be in writing to be enforceable. The purpose of contracts is to define duties and protect rights, so any contract that cannot be enforced is worthless.

Contracts that usually must be written include:

Contracts that will require a year or longer
Contracts on real property, including leases
Contracts to guarantee or pay another’s debt
Prenuptial agreements
Contracts relating to the sale of goods valued $500 or more

Help from an Experienced Business Formation Law Firm in Palm Beach

Need a business formation lawyer Palm Beach, Florida, trusts? First Legal can help with expert advice to get your business off to a strong start. Like you, our team believes integrity and transparency matter. For immediate help, call us at (954) 998-1488.

The post When a Business Contract is a Good Idea appeared first on First Legal, P.A. .

What to Do When Your Homeowners’ Association Forecloses on You

Mon, 25 Jul 2016 21:54:00 GMT

Are you facing foreclosure from a homeowners’ association?

In many states, a homeowners’ association, or HOA, can foreclose on your home in the event of unpaid fees owed to the organization. Many people who are required to be part of an HOA in their community may not even realize they wield such sweeping authority.

What is a Homeowners’ Association?

A homeowners’ association is a community organization frequently found in planned developments, such as leased land properties or gated communities. In many communities where they have been established, HOA membership is mandatory.

In exchange for a monthly or annual fee, the HOA manages the upkeep of common areas. These typically include amenities such as a clubhouse, an exercise room, or a pool. All homeowners typically pay the same rates, regardless of amenity usage.

Membership dues owed to HOAs are formally known as assessments .

The amount and frequency of these payments, as well as other guidelines and requirements, are provided to homeowners in the community’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs). Although the specifics vary from one state to the next, residents are typically required to execute this agreement before move-in.

The declaration governs rights and responsibilities in regards to an HOA. Unfortunately, it often empowers the organization to take aggressive and drastic action against resident homeowners.

What Happens if You Fail to Pay Homeowners’ Association Assessments?

In the event you fail to pay your assessments for a specified period of time, the homeowners’ association is empowered to foreclose on your home. Typically, the first step toward foreclosure is the attachment of a lien to your property.

The lien is often recorded with the county recorder so it becomes a matter of public record – a punitive action not typically required by state laws. Even if the lien is resolved, that record remains accessible to third parties.

Even if you’re up to date on your mortgage, a lien can be imposed for unpaid HOA assessments!

What Defenses Are Available if an HOA Threatens to Foreclose?

Even when a lien takes place, it does not mean that paying in full is your only option.

In fact, the aggressive and intimidating tactics used by some homeowners’ associations mean you should consider raising a vigorous defense against foreclosure. A judge may find you are not in the wrong in relation to your assessments.

Common defenses against foreclosure include:

Inaccurate accounting by the association causing the assessments to be overdue
Failure to follow state-specific laws on when and how foreclosure can take place
Unreasonable charges – for example, $500 in assessments, $5,000 in “penalties”
Unauthorized charges – any charges not specifically authorized by the CC&Rs
Failure of the HOA to properly apply received payments to the executed lien
Improper recording of the lien, or failure to do so in a state where it is required

Last, but not least, remember that the community’s CC&Rs may not even authorize foreclosure. This can often be determined simply by re-reading the document. Never assume that the HOA is empowered to take a specific measure just because you’ve received a communication about it.

Florida Residents: First Legal Can Help Protect Your Rights in Foreclosure Cases

Even in cases where legitimate debts are owned to a homeowners’ association, foreclosure can be pursued in a malicious or fraudulent way. Foreclosure can be prevented if legal experts, such as the team at First Legal, can establish any wrongdoing.

Are you looking for the real estate attorney Broward, Florida, residents know they can trust? Contact First Legal , a respected South Florida practice offering years of experience in real estate law and foreclosure defense .

The post What to Do When Your Homeowners’ Association Forecloses on You appeared first on First Legal, P.A. .

Forming a Business – What You Should Know

Mon, 18 Jul 2016 21:19:00 GMT

Taking the proper steps to start a business provides your budding venture with a wide range of benefits. To launch your efforts successfully, it’s important to consult with experts who can ensure the formalities are properly executed.

Sometimes, when individuals first get started on an exciting opportunity, they are tempted to put off the legal and accounting concerns that come with it. This is understandable, but ill-advised: By dealing with the details right away, you strengthen your chances of success.

Let’s look at some important things new entrepreneurs should know.

Starting Your Business Provides You With Crucial Tax Benefits

One of the first steps to getting your enterprise off the ground is selecting the structure of your business. “Self-employed” status should be considered for only the most modest ventures. In most cases, you will want to establish a corporation. In Florida, you have the option of a Limited Liability Company (LLC), C corporation, or S corporation, all with specific features.

A corporate structure obligates you to deal with quarterly reporting and some tax burdens you may not otherwise have. That said, it reduces taxation overall, especially for profit disbursements to your shareholders – including yourself. It also provides extended protection against liability, shielding your personal assets in the event your company is sued.

Starting a Business Protects Your Brand and Intellectual Property

Virtually everything you create in hopes of profit is “copyrighted” to yourself, without additional steps. When it comes to success in a crowded, competitive market, however, it’s best to go a bit further. Incorporating helps ensure that no other similar-named enterprise is operating in your state, so you’re less likely to have your business name and branding challenged.

Your formal structure also protects your most important asset: intellectual property. Once your new firm is in operation, any information, technologies, or even artistic pieces you generate in that context “belong” to it. This makes it easier for you to defend your proprietary rights and makes it clear when items were developed for profit, not as a hobby.

Starting a Business Helps You Write Off the Costs of Getting Started

On the day your paperwork is done, you can start writing off commercial expenses. By establishing a company bank account, you create clear separation of your assets from those of your brand – which makes it much easier to trim your tax obligations. For example, it ensures you won’t accidentally pay hefty payroll taxes when buying supplies.

As long as you’re making a purchase for a commercial expense, you can buy from any legitimate vendor or contractor. It’s not “who” you’re buying from, but “why” you’re doing it, that determines whether an expense is acceptable. This can save you thousands of dollars – especially in the early stages of your venture, when you may be investing heavily in advertising or technology.

Starting a Business Makes You More Credible to Potential Investors

Although some people spend months or years carefully saving up for their startup costs, this is not the only way to go. Many entrepreneurs seek funding in the community or connect with “angel investors.” These venture capitalists can provide crucial funding, but like to see their investments fully protected. Taking steps such as launching a corporation, developing a written plan, and performing market analysis can help in attracting capital investment.

Thousands of brand new businesses launch in Florida every year and yours can be one of them.

First Legal

No matter whether you need a Business Formation Attorney in Miami-Dade, Florida, or the Business Formation Lawyer Broward County residents trust most, contact First Legal from anywhere in the Sunshine State. We’re looking forward to helping your business succeed.

The post Forming a Business – What You Should Know appeared first on First Legal, P.A. .

What You Need to Know when Buying Your First Piece of Commercial Real Estate

Mon, 27 Jun 2016 16:12:00 GMT

Buying commercial real estate can be an amazing investment, and one that pays off for many years to come. However, buying that first piece of commercial real estate can also be pretty nerve-wracking. If you’re ready to dip your toes in the water though, chances are you’ve already started to do a little bit of searching on your own, but that doesn’t mean you’re ready to buy.

Use this guide to learn more about buying your very first piece of commercial real estate.

Why Are You Buying?

Commercial property can be a great boon for any investor, but you need to know why you’re buying before you actually start looking. Are you looking for property you can rent and use as passive income?

Do you want to have a property that will house your offices and pay for itself through rent? Maybe you’re just looking to buy a property, hold onto it for a few years, and flip it for cash?

Whatever your needs and desires, being clear about them can help you start the process of finding the right building the right way.

What’s Your Budget?

Before you consider buying any piece of commercial real estate, you need to sit down and figure out how much you can really afford to spend. After all, simply knowing how much cash you’ve got available isn’t always the best way to set a budget.

Will you be able to get a loan from the bank to buy a property? Is credit going to play a factor in the kind of commercial mortgage that you get? You need to know all of these things before you put a number down on paper.

You might also want to consider finding a partner if you feel like you don’t have enough capital to buy the type of property you want. You might not want a partner, but in many cases, you’ll do better in business by having somebody else with whom to work.

Hire a Commercial Real Estate Agent

If you want to buy a property that’s going to go up in value, meet your current business needs if you’re going to occupy any part of the space, and own something in the right area, you might need help to find it.

Using a commercial real estate agent can also help you find property faster. If you’re in a hurry to get something, you need to get help locating the best potential properties. They might get snapped up by other buyers if you go too long without a commercial agent.

Visit Multiple Properties

Even if you find what seems like the deal of a lifetime, buying any property without looking at others is a poor decision. That’s true even for investors with multiple properties, but when you’re buying for the first time, doing your homework is especially important.

If you’re in a real hurry, consider letting a real estate agent know that you have a serious time-frame for your purchase. They can help you visit multiple properties in a single day so you can see what’s available in your desired area.

Buying without knowing what’s really going on in the world of real estate in your area could result in you owning a property that isn’t a wise investment. You could even lose money and put your financial future at risk.

First Legal

Contact First Legal to learn more about buying your first piece of commercial real estate. Buying might seem confusing, but owning property can put you on the road to prosperity and a sound financial future. First Legal can help guide you down the right path.

The post What You Need to Know when Buying Your First Piece of Commercial Real Estate appeared first on First Legal, P.A. .

How Getting a Mortgage May Be Affected after Getting a Loan Modification

Sun, 05 Jun 2016 16:00:00 GMT

Did you know that getting a new mortgage could be affected by a previous loan modification? It’s true. If you had a mortgage a few years ago, but then needed to get mortgage loan modification, going forward you will need to meet some specific requirements to qualify for a new mortgage loan.

Loan Modifications

Loan modifications are also known as restructured mortgages. These are loans in which the original terms of the agreement have changed, so the debt is then restructured.

Typically loan modifications have to do with rate and payment restructuring when borrowers are unable to refinance.

It is important to remember that loan modifications are different from mortgage refinancing. Loan restructuring will change the terms of your original mortgage. Refinancing pays off your original mortgage loan, giving you another mortgage loan.

The Bottom Line

If you have a loan modification in the past and you are looking to get a new mortgage, you need to know that certain rules apply to your situation.

To be eligible for a new mortgage, you must have made at least 24 mortgage payments since your loan restructuring was completed. Even if you had a second mortgage in place when you restructured, that same 24-month time frame applies, no matter whether the home was a primary or secondary home (or even an investment property).

If you are purchasing another property independent of the property that has a restructured loan, then a one-year waiting period will apply.

If your previous loan modification was subject to forbearance, or if there was a principal balance forgiveness, it will be up to the new mortgage company to approve your loan.

Should You Modify or Remortgage?

If you are unsure whether to modify your mortgage or refinance, you may want to consult a loan modifications lawyer in Miami-Dade, Florida.

If your current mortgage loan company offers you lower monthly payments, make sure it is a refinancing offer rather than a loan modification. You should get the figures in writing, so that you can consult with a lawyer to verify.

In order to maintain your credit standing, it is often better to refinance rather than restructure. However, if refinancing is not an option for you, it is important to remember that your future mortgage options will be limited for the next two years with a restructuring.

Lenders will report restructured mortgages to credit companies. Sometimes a restructured mortgage can be a red flag to new lenders.

First Legal

If you have had a home loan modification and are looking to buy a new home, you may want to look into loan modifications law in Palm Beach, Florida. It is also important to look at your credit report before you apply for a mortgage, to ensure there are no errors or problems that need to be resolved. If you have any questions, please contact the friendly legal professionals at First Legal . We would be happy to help you.

The post How Getting a Mortgage May Be Affected after Getting a Loan Modification appeared first on First Legal, P.A. .

What to Do After You Have Gone Through a Foreclosure

Tue, 24 May 2016 20:36:00 GMT

Foreclosure rates peaked during the recession and are still high today. If you can’t pay your mortgage and haven’t been able to escape being foreclosed, then how do you move forward?

Moving out

Your immediate concern will probably be when you have to move out – and that depends on many factors. If the house is sold at a foreclosure sale, the new owner will probably want you out as soon as possible.

Businesses that buy and resell foreclosed homes, though, can take some time to actually send an eviction notice. If the new owner has no experience buying a foreclosed home, that can also buy you some time.

In some cases, the termination notice may come with a “cash for keys” offer – a lump sum you accept if you agree to move by a certain date and leave the home in good condition. If the termination notice doesn’t come with such an offer, it’s worth suggesting it. It’s a lot cheaper for them than forcing you out, and it might cover the security deposit on a rental.

If your home is not sold, then the bank will keep possession for a while, and you may be able to stay for several months, especially if there are a lot of vacant homes in your area.

Next residence

As soon as foreclosure becomes inevitable, you should look for a new place to live. This can be challenging, especially if you have little money. Some landlords will accept tenants with credit scores as low as 580, but others may see a foreclosure and simply say no. It might take some time to find a landlord who will rent to you and they are likely to demand a higher security deposit. So, you should start looking as soon as it becomes clear you are not going to be able to keep your home.

Unfortunately, your credit score will take a major hit. You may also be considered indebted for the “deficiency” – the difference in value between your loan capital and what the bank was able to sell the house for. The foreclosure will stay on your credit report for seven years, and many lenders will not give a mortgage to someone with one on their report. This includes Fannie Mae. (Some lenders, however, are more forgiving). You also need to note that debt you do not have to pay is considered income by the IRS. All of this means you are going to need legal and financial advice on how to get your life back on track and your credit score up as quickly as possible.

First Legal

First Legal is a law firm Miami-Dade County, Florida, that specializes in foreclosure and real estate law. We can help you fight a foreclosure or help you to get back on your feet if you have suffered one. We also handle bankruptcy and can advise on whether filing for bankruptcy can help you save your home or, at least, your credit score. Contact us today for more information.

The post What to Do After You Have Gone Through a Foreclosure appeared first on First Legal, P.A. .

The First Thing You Should Do When the Bank Wants to Foreclose On Your Home

Tue, 24 May 2016 20:23:00 GMT

Finances can get tight. If you are struggling to make mortgage payments, you are not alone. The threat of foreclosure can be enough to tip things over the edge. So, what should you do?

The first thing you should do, ideally before the bank sends you a late notice (at which point your credit will already be taking a substantial hit) is talk to your lender. Most banks would rather resolve the issue than foreclose – which costs them in legal fees, time, and hassle. In many cases, they might be willing to come up with a repayment or “forbearance” plan to allow you to pay only what you can afford.

Legal advice

At the same time, you will need legal advice. Yes, that is an additional cost, but without it you are not going to be able to properly protect yourself. If you are unable to come to an arrangement with your bank, you will be in the court system very quickly.

Foreclosure laws are complicated and vary from state to state. You should not call just any lawyer, but look for one that specializes in real estate law and foreclosure defense, like the professionals at First Legal .

The government’s Housing and Urban Development department also approves housing counseling agencies that can give advice on avoiding foreclosure, but if you end up in court, they cannot give you the same level of defense and protection as a lawyer.

A lawyer is particularly important if you want to keep your home. They can help you find a valid defense – which often involves catching the bank out over complicated foreclosure procedures. If your bank is pursuing both a foreclosure and a loan modification, this is actually a violation of federal rules and you definitely need a lawyer. A foreclosure defense attorney like First Legal in Broward County, Florida, can help you straighten everything out and start to get your life back on track.

Make sure you contact a reputable lawyer. Foreclosure “rescue” scams are common – your notice of default is a computerized public record and can easily be found. One scam is to pretend to be a foreclosure “consultant” and then charge exorbitant fees for things you could easily do yourself, or simply charge fees and never actually do anything. A reputable real estate lawyer will tell you what you can do yourself and what you need to have them do for you. Also, a good lawyer will establish their costs up front and make sure you know how much you will need to pay for their services.

First Legal

Above all, don’t panic. You are not alone, and it is not the end of the world! If you need a foreclosure lawyer in Palm Beach, Florida, First Legal can help you. We offer foreclosure defense and loan modification services, and pride ourselves on integrity, transparency and tailoring our services to your exact needs.

The post The First Thing You Should Do When the Bank Wants to Foreclose On Your Home appeared first on First Legal, P.A. .