Florida Plaintiff Foreclosure Services
CPC Law represents real estate investors, private lenders, note-buyers and local community banks and credit unions in plaintiff-side foreclosures. We don’t represent the big banks and government-sponsored enterprises (“GSE”) like Freddie Mac and Fannie Mae. These giants are the problem, not the solution, and we fight them in court on behalf of our consumer and investor clients.
When our clients’ borrowers default and the loan gets on the foreclosure path, we’ll pursue every settlement effort available before filing the case. CPC Law will try to resolve the matter, avoid foreclosure and resume our clients’ cash flow as efficiently as possible.
There are several settlement opportunities available in any “pre-foreclosure” matter. Throughout our historical foreclosure crisis, the big banks were caught off guard for the tidal wave of defaults and did a horrible job handling these “loss-mitigation” efforts. Within our clients’ acceptable parameters, we give their borrowers every reasonable opportunity to avoid foreclosure before we file.
To keep the borrower in the property and make a “non-performing” note pay again, we’ll discuss a loan modification with the borrower. A modification may take many forms, including a reduction of the interest rate, lower monthly payments, principal reduction and putting payment arrears “on the back” of the note as “deferred principal” due at the end. The possible adjustments can be any combination of temporary or permanent, according to the circumstances.
When note-buyers step into the originating lenders’ shoes, they’ll almost certainly buy-in at a significant discount from the property’s fair market value. This creates “wiggle room” for some favorable loan modification options, including principal reductions that turn out to be win-win for the new lender and borrower.
Another settlement and foreclosure-avoidance option is the “deed in lieu of foreclosure” (DIL). With a DIL, the borrower signs title of the property directly over to the lender. This cuts to the chase and brings the lender to what would likely have been the final stage of a judicial foreclosure—taking title to the property.
Instead of filing a case and paying court costs and attorney’s fees to get to a court auction, the lender and borrower walk away from each other through a negotiated surrender. The lender can offer a “deficiency waiver” to sweeten the deal. This means the borrower will have no further financial liability to the lender in the event the lender loses money by taking back a property worth less than the value of the loan.
The final common strategy is a “short sale.” These deals dominated the real estate market during the foreclosure crisis. In more recent years, with rising property values and fewer properties upside down, short sales have diminished greatly, but they’ve always been around and always will.
When a distressed property’s value is lower than the amount owed on the mortgage, it’s considered “upside down” or “underwater” in the real estate and legal jargon. A short sale is simply a sale of the property on the open market for an amount that will be insufficient to pay the debt owed to the lender.
Many lenders welcome the chance to collect short sale proceeds to avoid the hassles and costs of foreclosing, only to end up taking title of the property worth the amount they could receive through a short sale. If there’s equity in the property, as is very common now, the lender can give the borrower a fair chance to sell it and pay off the mortgage while avoiding foreclosure.
When we represent private lenders and other clients needing to foreclose, we bring all our tools and expertise from the foreclosure defense side to the case to benefit our clients. CPC Law has very effectively defended foreclosures going back to the market crash in 2008 and foreclosure crisis that followed.
We know the defense strategies and tactics that work against the banks and use this knowledge to avoid harm resulting from the tactics of effective foreclosure defense attorneys. Of course, in many cases, borrowers don’t hire their own counsel to defend the case. In those cases, we’ll deal directly with the borrower and work within our clients’ guidelines to seek a foreclosure resolution or take the matter to a court sale.
Most of the big banks and GSE hire long-established and large foreclosure law firms known in legal circles as the ‘mills.” Though they have outstanding attorneys and often do good work, these firms suffer many burdens imposed upon them by the micro-management of their lender clients.
Effectively, their clients impose inefficiencies and forced overhead on the law firms as a condition to continue receiving their business. Some of the unintended consequences of big-lender micro-management has been unnecessary delays and sometimes, sloppy work. History buffs might compare them to the “Italian Army” when the client really needs the “German Army.”
At CPC Law, we run a lean and mean operation on behalf of our foreclosure plaintiff clients we like to think of as a “light infantry unit.” We don’t run our firm under the burdensome constraints of the big banks and GSE and we generally move cases through the legal system more efficiently.
For example, we’ll take advantage of Florida’s “fast track” foreclosure law found in Florida Statute Section 702.10 to put the borrower on the defensive for a resolution that’s usually quicker than other more traditional paths.
CPC Law also teams with excellent attorneys who came out of the “foreclosure mills” for a better working environment. The liberating effect of taking the knowledge and experience acquired handling high foreclosure case-loads is put to good use for our foreclosure clients.
If you are a private-lender, note-buyer or local community bank in need of foreclosure legal services, call CPC Law for your attorney consultation.