The court system is making significant progress in tacking Florida’s backlog of mortgage foreclosure cases. In recent meetings, the circuit met with banking representatives to initiate a new banking servicing rule that took effect January 10, 2014. The Consumer Financial Protection Bureau explains that under this rule, “the lender or mortgage loan servicer can not move for a foreclosure judgment, order of sale or conduct a foreclosure sale if a borrower submits a loan modification application more than 37 days before a foreclosure sale.” In other words, if the borrower has initiated a loan modification and has not received an approval or denial, the foreclosure sale can not go through until such time as the lender issues an approval, denial or the loan modification is rejected. The rules call for certain action from the lender, that are strict and enforced by the Court.
This is great news for borrowers trying to complete their loan modifications and the lenders will not work with them to cancel the foreclosure sales. Many borrowers unfortunately do not know of this rule and the bank takes advantage of them in court through their attorneys. There are even judges that are not aware of this rule.
Therefore, the best advice is to always hire an attorney to look out for your best interest. Pre-qualify you free of charge for a loan modification and advise whether you are eligible for a (1) principal reduction; (2) interest rate reduction and (3) stretched out amortization.
Call us today to discuss your options and whether your mortgage foreclosure sale can be cancelled due to this new rule.
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Jacqueline A. Salcines
LAW OFFICES OF JACQUELINE A. SALCINES, PA
706 S. DIXIE HIGHWAY SECOND FLOOR CORAL GABLES, FLORIDA 33146 TEL: 305. 669. 5280 J.SALCINES@SALCINESLAW.COM