Receiving communication from a debt collector claiming you have past-due debt on a second mortgage you didn’t even know existed can be a nightmare. Your finances and even your home are suddenly at risk.
Fortunately, you have options to avoid a zombie second mortgage foreclosure auction. Contact Loan Lawyers today for a free initial consultation to discuss your situation with an experienced Fort Lauderdale foreclosure defense lawyer.
Strategies To Fight a Zombie Second Mortgage
There are several strategies your attorney may be able to employ to fight your zombie second mortgage and get you the relief you deserve:
- Review the Statute of Limitations of Your Second Mortgage — There’s a five-year statute of limitations on second mortgage debt in Florida, meaning the owner has five years from the date of default to attempt to collect.
- Challenge Authority to Foreclosure a Zombie Second Mortgage — The owner of your zombie second mortgage debt may not have the authority to collect on it through foreclosure if they lack the necessary documentation. This is the case with many parties who own zombie second mortgage debt.
- Use TILA and RESPA to Your Advantage — The Truth in Lending Act and the Real Estate Settlement Procedures Act may offer valuable protection if the owner of the second mortgage debt failed to notify you when they took ownership of the debt.
- Check if You Qualify for Relief with the Fair Debt Collection Practices Act — The debt collector may not be legally entitled to attempt to collect on the debt associated with your second mortgage. Debt collectors who do this may be in violation of the Fair Debt Collection Practices Act.
- Ensure Collectors Are Complying with Florida State Law Foreclosure Requirements — Florida has specific laws that govern foreclosure proceedings. An attorney can determine whether the party attempting to collect on your zombie second mortgage loan is doing so in violation of any applicable state laws.
- Consider Loss Mitigation — It may not be your preferred option, but you can attempt to work with the debt collector to come up with a payment plan that enables you to avoid foreclosure if you have more than one mortgage.
- File for Bankruptcy to Save Your Home — Filing for Chapter 13 bankruptcy may be an option to discharge the debt associated with second mortgages. It can also buy you time to take legal action against the debt collector.
Your attorney will examine the details of your case to determine the strategy most likely to successfully free you from the financial stress and anxiety associated with a zombie second mortgage.
Contact an Experienced Fort Lauderdale, Florida Foreclosure Defense Attorney
Since 2009, Loan Lawyers has focused on providing homeowners in debt with the legal assistance they need. Our Florida foreclosure defense lawyer understands how to stop second mortgage foreclosures and has saved over 3,000 homes and properties from foreclosure. We will aggressively pursue the justice and peace of mind you deserve. Contact Loan Lawyers today for a free consultation.
