Happy Thanksgiving !

Friends and Clients,

This week, it is only appropriate to suspend our foreclosure discussion and focus on that which can lift our spirits and challenge our perspective during this wonderful Holiday of Thanksgiving. 

This year, my wife picked up a childrens' book called the History of Thanksgiving.  I recently read it to my kids and it served as a great reminder for me.  I would cite the book but it has since been lost by the little ones (yes I'm blaming them) somewhere in our house - I am sure many of you parents out there can empathize.  Anyway, read through the following summary and don't miss the commentary at the end.

Thanksgiving originated with the Pilgrims, who were Quakers, after they had fled Merry Old England because they could no longer bear the persecution being brought upon them by the King of England.  Incidently the King of England had established a state religion which was not of the Quaker persuasion. 

The Pilgrims left on September 6, 1620 aboard the Mayflower and the journey took 65 days, during which time the Pilgrims ate cold food the entire time and endured numerous other terrible conditions.  One Pilgrim died during the journey due to the conditions aboard the ship.

The Mayflower finally landed at Plymouth, Massachusates, which had been named by British sea Captain John Smith in 1614.  The landing site offered a large brook for fishing and an ideal natural harbor.  The Pilgrims biggest concern was an attack by the local Native American Indians. 

The Pilgrims were ill prepared for the first winter and OVER HALFof the Pilgrims did not survive.  In the spring an Indian by the name of Samoset sauntered into the Pilgrim camp.  The Pilgrims were frightened until he welcomed them in English.  He later brought another Indian named Squanto who spoke even better English and the Pilgrims and Indians began a friendship that lasted about 50 years.   The Indians taught the Pilgrims to survive and thrive in their new environment. At the end of that first summer, food was abundant (sound familiar?).  The Pilgrims and Indians joined in a huge celebration of thanksgiving that was declared "officially" thanksgiving at that time by the Pilgrim Governor William Bradford.  An annual Thanksgiving celebration has endured to this day and in 1863 Thanksgiving was appointed as a national day (Holiday) by none other than Abraham Lincoln.

When I read an account like this (and actually let it sink in) I wrestle with a number of emotions.  I am awestruck at the Pilgrims resolve to launch out into a dangerous, unknown, because they were so driven by the conviction of their faith and the need to be FREE.  I am also convicted at the daily complaints that seem to surface for me over mundane issues like whether my Blackberry is syncing properly.  But most importantly, I think about the Pilgrims' statement in light of our culture today. 

Things appear to be gravitating away from freedom and toward oppression.  With that in mind, I pose the question to you dear friends and clients and I ask myself the same questions.  Are we even willing to inconvience ourselves to protect our precious freedoms, much less risk it all?  After generations of sacrifice by those who in fact give all for freedom, from the Pilgrims to our young men spanning the generations who spilled their blood on battlefields all across this world.  What are we willing to give up in order to preserve the freedoms that we have left, because tyranny and oppression is always lurking to gain a foothold. 

As we give thanks this great Holiday, let us consider and give thanks for all the sacrifices endured by those who came before us so that we could have a seat at this table, and let us ask ourselves what is our role in preserving our freedoms for the generations to come.  

Until next time.

Session 5 - Foreclosure Tips Series

Hello Friends and Clients, Greetings on a beautiful Wednesday morning!

Last week we talked about having a plan and the plan must include whether you hope to save your home.  So this weeks topic concerns the most important decision in your planning which is to decide whether you can afford to fight for and keep your property.  In making this determination you should consider a number of questions which are:  1.  Is there any equity in the property?  Equity refers to the market value of your property less the balance owed on all of the liens against it, and, the costs of sale.  2.  Does the property have economic value apart from the equity?  In other words, are there junior lienholders that could seek legal recourse in the event of a foreclosure in which event there would be economic value in stop the foreclosure and selling the property in order to pay off the junior lienholders.  3.  Are you emotionally attached to the property?  Does a strong emotional attachment to the property make losing is unbearable - if so you may have a greater reason to fight for the property.  4.  Are there other factors that may affect your decision such as tax liability if you sell or lose your property in foreclosure?  You may need to seek professional advice concerning any of the above questions but the important thing is to consider and decide early in your planning process.  

I will leave you with this important question - until next time.

Session 3 - Foreclosure Series

Welcome to another week of this blog series designed to help individuals and families understand and plan for the foreclosure process.  This week's topic - Have a Plan!

We all know that having a plan makes sense but many in the throws of a potential foreclosure tend to lose all sense of control - this is the deer in the headlights scenario that I mentioned in a previous session.  The legal reality is that you are not subject to the whim of your lender and you can take control of this process in order navigate out of it in the most successful way possible.  So here are some initial suggestions:

1.  Communicate with your lender.  First, find out who your lender is - this can be a real challenge.  Look for clues in the documents provided to you.  Legal papers will include the lender's attorney.  Papers from the lender can serve as clues but may only be coming from the loan servicer.  Ask who your lender is - you can respond to any phone calls with a letter indicating to whom you've spoken.  You will fare better by opening the lines of communication rather than adopting a code of silence.  I do qualify this advice by saying that it is not generally beneficial to admit liability for any debt so you should focus your communication to your objective which is most likely to obtain a loan workout, short sale approval or a deed in lieu (three topics to be discussed in future sessions) and refrain from elaborating too much about the hardships in your life (it may be advisable to consult with your attorney concerning any responses to your lender).  Start and maintain a log of contacts.  Find out who is responsible for your loan and who has the authority to negotiate.  Find out who the lender's CEO is, as well as the branch manager of the branch (if applicable), the loan officer who helped you (if they are still around), and record any other person you know in the lender's office. 

2.  Gather your documents.  Find and categorize all of the documents that relate to your property and your loan.  Typically, such documents would include:  copies of your promissory note/s, copies of mortgage/s, copies of documents or letters in escrow, property profile, copies of all letters sent by or received you and/or sent or received by lender, and copies of all foreclosure documents. 

3.  Learn the clock.  Research (or ask your attorney) what the timelines are for the foreclosure process.  In Florida the process will take a estimated minimum of 20 - 30 days from your receipt of service of the foreclosure papers from the lender's attorney (this is in the event you do not respond to the documents).

4.  Decide whether to attempt to keep your home.  This is a topic unto itself and will be discussed in future sessions.

I hope this is helpful.  Until next time . . .

Foreclosure Tips - Second Session

Last week I touched on the basics of the foreclosure process.  This week I want to try to impart some perspective and common sense. 

DON'T PANIC! 

Often times people that are served with foreclosure papers are like a "deer in the headlights".  If you misunderstand the process, you may feel that your property has already been foreclosed upon even though you were just served with legal documents.  Understand that foreclosure is a lengthy process and not a single event.  The process generally takes a minimum of three months and can take a year or more.  So, do not think all is lost and give up without a fight.  You need to be proactive and be willing to learn about the foreclosure procedures and become committed to dealing with your lender - this approach will empower you and will heighten the chance for a more positive outcome for you and your family. Whether you've hired an attorney to help you or not, you need to get comfortable with the idea of communicating with your lender.  You DO NOT have to sound like a lawyer - most of the people you will be dealing with are not lawyers but are simply employees hired to deal with the present crises at hand.    There are a number of strategies available that I will discuss in the upcoming sessions.  For now, just remember not to panic and begin to think about creating a plan for dealing with the foreclosure process.

Tune in to the next session aimed at helping you develop a plan to deal with the foreclosure process.


Until next time.

Tips for Those Facing Foreclosure - A New Series

Clients and Friends,

I speak to many people nowadays who are facing the stress that comes with foreclosure and other financial challenges so I decided to start a series aimed at helping you, whether you are just curious or in the throws of the legal process, to understand this process and deal with it more effectively.  So here goes - the kickoff.

Session 1:

What is foreclosure?

Simply put, foreclosure is a legal remedy (reserved in the mortgage document) which a lender may pursue in the event a borrower does not pay the mortgage payment in a timely fashion.  In order to exercise this legal remedy, a  lender must jump through a number of hoops (non-legalese) in order to obtain the property that is subject to the unpaid debt.  Clear enough?  (remember you can post questions).  The hoops that a lender must jump through will vary based upon the state and local laws of the jurisdiction where the property is located.  Thus, the advice of a local real estate attorney may come in handy.  Here in the great state of Florida, Lee County, the lender must pursue foreclosure through the courts after providing the homeowner with a notice of default and this notice must comply with certain requirements pursuant to the Fair Debt Collection Practices Act.  Typically, the lender files a lis pendens in the Courts and serves upon the borrower a foreclosure summons and complaint which must be answered within a specific time or the answer is waived.  Thereafter, the lender will attempt to obtain a judgment of foreclosure, either through default proceedings (meaning the borrower did not file an answer) or by summary judgment proceedings (another legal proceedings) or potentially by trial (which in my experience doesn't happen often).  The process can take anywhere from several months to a year after being served the initial complaint and the courts as of late (at least here in Lee County) have .  My point in describing this process is that if a borrower is attentive to the necessary process, there is time to take a careful look at the options and alternatives which will be discussed in session to follow next week - so tune in next time.  Have a great week.

I was visiting our local library on Saturday and was met with a not entirely pleasant experience.  Upon arrival at 5:50 p.m., my family and I quickly discovered that the library was closing at 6:00 p.m.  Upon entry into the facility, it was clear that the workers were scurrying to vacate the premises.  Still, my task oriented nature in full tilt, I ventured to the information desk and asked for assistance.  The staff membered eyeballed me impatiently and chirped "the library is closing" to which I responded that it was 5:55.  I proceeded to ask her to look up a book for me and was informed that the computer had been closed out for the day.  Prior to exiting, I noted a sign perched on the desk that said that opening hours are soon to suffer a further cut back to 5:00 p.m. and when I asked the staff member about it, she informed me that it is due to "serious budget issues".    As I exited the drab facility, the thought entered my mind that this encounter vividly displayed the perils of a government operated organization.  Unmotivated workers, drab surroundings and limited services which are totally dependent, not upon happy customers, but rather the whim of whatever bureaucratic entity presides over the purse. 

Our next stop was a highly recognized corporate bookstore chain and upon entry, I was immediately struck with the light and bright dynamic appearance of the store, the staff members who appeared content to work the evening shift and the vast selection of books.  In interesting contrast between the free government option and the "evil" corporate enterprise whose sole objective of course to make obscene profits. 

Note, this little essay contains themes that may be applied to current public policy debates at your choosing.

Until next issue.