While property can be lost after a foreclosure by failing to pay the taxes or for new construction repairs, there are a few situations in particular that will cause a lender to be “wiped-out” after a foreclosure.

The first situation is the failure to pay assessments to the Homeowners Association (HOA) or the Condominium Association (COA). Florida law generally requires a lender who forecloses a first mortgage to pay only a portion of delinquent HOA or COA assessments owed by the Borrower, often referred to as the “safe harbor” amount. However, the money must be paid within a short period of time.

In the case of a COA, fees have to be paid within 30 days of acquiring title. Although there is no similar fixed time for paying delinquent HOA fees, a lender would be wise to pay them within 45 days of acquiring title. The lender also must remember to pay recurring assessments, just like every other homeowner. If a lender fails to make any of these payments, the HOA or COA has the right to file a Claim of Lien and foreclose.

The other situation that may result in a lender losing a foreclosed property is failure to deal with code violations in a timely manner. While fines and penalties from pre-existing (i.e. prior to foreclosure) code violations can often be eliminated through the foreclosure, the violations themselves remain. If left uncorrected, they can give rise to new monetary liens against the lender as the new homeowner.

But it can get worse. Unpaid liens can put a lender at risk of losing the property with the violations, if the local government decides to foreclose its lien. Further, under Florida law these liens spread or “bleed” to other properties owned by the lender and could affect the lender’s ability to sell any of its REO assets in that county.

The lesson to be learned is simple: A lender who forecloses must remember to act like a homeowner and keep current on HOA and COA fees, and correct code violations. Otherwise, the lender could find itself in foreclosure and lose the property – just like the Borrower who defaulted on the mortgage.

The post Protect Against Losing Property After Foreclosure appeared first on ERW LAW.

A frequent lecturer throughout the U.S. on a range of subjects, including property loss and workers’ compensation, Linhart is active in the legal community and has served as a magistrate, special master and Florida Supreme Court Qualified Arbitrator. He is a member of the Florida, New York, Texas and Washington, D.C. bar associations; the U.S. District Court (Northern, Middle and Southern Districts of Florida); and the U.S. Court of Appeals Eleventh District and Federal District.

“At ERW Law, we have a deep bench of attorneys who are well-versed in complex litigation and always ready to represent the interests of our clients in court,” said Elizabeth Wellborn, Esq., principal and founder of ERW Law. “Jacob’s extensive experience in bench and jury trials is a good fit for this firm and will benefit our clients tremendously.”

A graduate of the University of Miami and University of Miami School of Law, Linhart will be located in ERW Law’s Deerfield Beach, Fla. office. ERW Law also has a location near Buffalo, N.Y.

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About the Law Offices of Elizabeth R. Wellborn, PA
The law practice Elizabeth R. Wellborn, PA (ERW Law) was founded in 2003 as a creditors’ rights law firm focused on collections, real estate foreclosures, bankruptcy, evictions, REO, replevins and mechanic liens, as well as defense litigation related to each of those areas. ERW Law employs 300 individuals at offices in Deerfield Beach, Florida, and Getzville, New York. Principal Elizabeth R. Wellborn, Esq., has nearly two decades of experience as a litigator in both commercial and civil actions, and is recognized as an expert in protecting the rights of clients involved in legal disputes arising from creditor issues. For more information, visit www.erwlaw.com.

Media contact:
Sarah Jones
Cookerly Public Relations
(404) 816-2037
sarah@cookerly.com

The post Elizabeth R. Wellborn, P.A. is Pleased to Announce Jacob Linhart as Litigation Managing Attorney in Florida Office appeared first on ERW LAW.

Within the legal community, Shravah is actively involved in organizations such as the National Association of Chapter 13 Trustees and the American Legal and Financial Network. She assisted in developing the bankruptcy loss mitigation program in the Southern District of New York and is a recognized expert in this field. Shravah is also a frequent speaker at industry conferences and seminars, and is regularly invited by clients to conduct internal staff training on a range of legal issues.

“Attracting attorneys with high integrity and a strong work ethic to represent our clients is a key reason our firm has achieved sustained growth over its ten year history,” said Elizabeth Wellborn, Esq., principal and founder of ERW Law. “Asha is an outstanding addition to the firm. She brings strong industry experience, a record of leadership and a commitment to customer service; we are pleased to welcome her to ERW Law.”

A graduate of Hofstra University School of Law and State University of New York at Stony Brook, Shravah is admitted to the New York State Bar and the Eastern, Western, Southern and Northern Districts of New York. ERW Law has attorneys licensed to practice law in Florida, New York, Georgia, Texas and the District of Columbia.

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About the Law Offices of Elizabeth R. Wellborn, PA
The law practice Elizabeth R. Wellborn, PA (ERW Law) was founded in 2003 as a creditors’ rights law firm focused on collections, real estate foreclosures, bankruptcy, evictions, REO, replevins and mechanic liens, as well as defense litigation related to each of those areas. ERW Law employs 300 individuals at offices in Deerfield Beach, Florida, and Getzville, New York. Principal Elizabeth R. Wellborn, Esq., has nearly two decades of experience as a litigator in both commercial and civil actions, and is recognized as an expert in protecting the rights of clients involved in legal disputes arising from creditor issues. For more information, visit www.erwlaw.com.

Media contact:
Sarah Jones
Cookerly Public Relations
(404) 816-2037
sarah@cookerly.com

The post Elizabeth R. Wellborn, P.A., names Asha Shravah Managing Attorney of New York Office appeared first on ERW LAW.

While Florida may be known for its beaches, resorts and cities, it also has rural areas and smaller communities where there are many mobile homes.

From a legal perspective, it is important to distinguish a mobile or manufactured home from a modular home – which is often built in sections in a factory and then assembled on a home site – because ownership and title to each is handled very differently under Florida law. A modular home is treated the same as any other “brick-and-mortar” home and title to the home generally passes with a transfer of the land. By contrast, a mobile home is treated like a motor vehicle and is issued a separate Certificate of Title by Florida’s Department of Highway Safety and Motor Vehicles (the “DMV”).

This can make things tricky when selling a mobile home. Unless the Certificate of Title has been “retired” and eliminated, a sale or mortgage of land that is improved with a permanent mobile home requires both a deed and/or mortgage for the land itself (identifying the home and filed with the local land records) and a separate transfer of the Certificate of Title to the mobile home (which is filed with the DMV).

In the course of handling the foreclosure of mobile home properties, we often find that the settlement agent who closed the mortgage transaction fails to identify the mobile home in the deed and/or mortgage and fails to deal with the Certificate of Title. In particular, the failure to identify the mobile home in the mortgage will create a major problem for the lender when foreclosing. Unless the foreclosure documents identify the mobile home, the DMV will not issue a new Certificate of Title to the party who buys the property. As a result, the new owner will have title to the land, but not to the house that sits on it.

Because of this dual title requirement, it is imperative for all parties involved in a sale or mortgage of property that contains a mobile home to make sure that the settlement agent does everything required. In addition, when buying title insurance, we recommend the purchase of an ALTA 7 Manufactured Housing Unit Endorsement, which provides for the mobile home to be insured as part of the real estate.

There is no substitute for dotting i’s and crossing t’s when buying or selling real estate. The consequences of not doing so are unnecessary hassle and even financial loss.

The post Is a Mobile Home a Vehicle? appeared first on ERW LAW.

(DEERFIELD BEACH, Fla. – February 11, 2013) – Elizabeth R. Wellborn, PA. (ERW Law), one of Florida’s largest woman-owned law firms, is celebrating ten years of service to clients this year. Founded as a boutique litigation firm with a foreclosure practice, it is now one of the largest firms in the state. ERW Law attorneys are experts across the wide range of issues that arise in default servicing.

Founder and Principal Liz Wellborn credits her success to an unwavering commitment to the firm’s core values of integrity, quality, diversity and customer service.

“In the legal industry, you have to know what your values are and stick to them, no matter what,” Liz said. “From the very beginning, our firm has focused on delivering exceptional service while abiding by the highest ethical standards. Those values, along with a diverse team of experienced staff and attorneys, have guided us well over our ten year history. I’m proud of what we have accomplished as a firm – and on behalf of our clients – and am excited about what we will do in the next ten years.”

Liz started the firm in 2003 after working for over a decade in commercial and civil litigation. The firm enjoyed steady growth during its first four years in business, during which time Liz was asked to serve as in-house counsel for a large mortgage servicer. ERW Law began expanding rapidly in 2007 and would later join the Fannie Mae Retained Attorney Network, further propelling its growth.

Currently, ERW Law employs approximately 300 individuals, including more than 50 attorneys.

As part of its ongoing effort to achieve consistent, sustainable growth, ERW Law opened an office in New York in 2011. The firm has attorneys licensed to practice law in Florida, New York, Georgia, Texas and the District of Columbia.

For more information, visit www.erwlaw.com.

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About the Law Offices of Elizabeth R. Wellborn, PA

The law practice Elizabeth R. Wellborn, PA (ERW) was founded in 2003 as a creditors’ rights law firm focused on collections, real estate foreclosures, bankruptcy, evictions, REO, replevins and mechanic liens, as well as defense litigation related to each of those areas. ERW employs 300 individuals at offices in Deerfield Beach, Florida, and Getzville, New York. Principal Elizabeth R. Wellborn, Esq., has nearly two decades of experience as a litigator in both commercial and civil actions, and is recognized as an expert in protecting the rights of clients involved in legal disputes arising from creditor issues. For more information, visit www.erwlaw.com.

Media contact:

Matt Cochran
Cookerly Public Relations
(404) 816-2037
matt@cookerly.com

The post Elizabeth R. Wellborn, P.A. Celebrates Ten Years of Service to Clients appeared first on ERW LAW.

While such errors can remain unknown with performing loans – since there usually is no need to examine them closely – it’s a different story when a mortgage is being foreclosed. When title to the property is reviewed closely to determine the parties that need to be joined in the action, mistakes and other title defects can surface. Settlement agents need to take care to avoid such errors at loan origination because they can cause delays in the foreclosure process, or sometimes derail it altogether.

There are a variety of title defects that may turn up during a pre-foreclosure title search and review, but the vast majority tend to fall within four main areas:

Defective legal description. While a correct street address may be sufficient to transfer title in certain situations, a correct legal description is essential to having an insurable deed or mortgage. The majority of mistakes in the legal description involve typographical or clerical errors; however, a significant number of them result from the settlement agent’s simple failure to attach a copy of the legal description to the document.

Failure of all owners or spouse to execute mortgage. When a mortgage loan is made solely on the credit of one of several co-owners, loan documents are often executed solely by that individual as the borrower. If the borrower is married, some states require his or her spouse to sign the mortgage. Further, if the property is owned by multiple parties, then the other parties must sign the mortgage to encumber their interests in it and, if married, their spouses may also have to sign it.

Documents recorded in wrong order. In Florida, the priority of property interests are generally determined by the order in which documents are recorded in the local public record. As a result, if a first and second mortgage that originate simultaneously are recorded in the wrong order by the settlement agent, the first mortgage will not have priority as a first lien on the property.

Failure to properly record documents. It is imperative that deeds and mortgages are recorded so that they stand as “notice to the world” of the interests they represent, and that they are recorded in the public records of the county in which the property is located. These documents, however, are sometimes not recorded by the settlement agent or are recorded in the public records of the wrong county.

Of course, the best way to deal with title defects is to prevent them in the first place. That’s why we recommend lenders choose a reputable and competent settlement agent that has the necessary knowledge of state law and the transactional skills to handle a loan closing. While there are various tools available to correct mistakes, we cannot emphasize enough the importance of purchasing a loan policy of title insurance at loan origination so that the underwriter can be called upon to take legal and financial responsibility for the work.

The post Watch Out for Title Defects that can Delay Foreclosure Process appeared first on ERW LAW.

The reason line-of-credit mortgages continue to pose a greater risk for loss than fraud is simple: although fraud prospered during this period, it still only affected a limited number of loans. By contrast, a vast number of mortgages during the bubble involved “80/20” financing (80 percent conventional first mortgage and 20 percent line-of-credit second mortgage) and as property values continued to rise, owners borrowed freely against their equity.

The dangers posed by these mortgages lie in the requirements and often lender-specific instructions for satisfying them. For example, in order to get a firm payoff statement, the account must be “blocked” and ultimately closed, but often using only the lender’s preferred form. In addition, a settlement agent is frequently required to do a last-minute verification after the account has been “blocked” and a final payoff statement purportedly issued.

Unfortunately, many settlement agents handling a refinance intended to satisfy one of these mortgages fail to follow all of the lender’s and title insurance underwriters’ procedures. The result is that the debt is not “paid-off”, but only “paid-down” to zero – while the account is left open and still available to the borrower. In fact, we’ve represented numerous clients in foreclosing mortgages made to satisfy a line-of-credit mortgage in which our title search found the line-of-credit mortgage was never satisfied. This sets off warning bells because of the possibility the account was not effectively paid-off and remains an active loan.

In such circumstances, it’s critical to be proactive. We work to overcome the unintended priority of these mortgages by taking action within our foreclosure and filing a title claim on the lender’s loan policy of title insurance. It’s also critical for lenders and servicers to remain vigilant and not ignore any summons or complaint that is served on them and which purports to foreclose the prior mortgage. When faced with such a lawsuit, a lender or servicer should refer it immediately to their legal counsel. Failure to act promptly could result in a lender losing its security interest in the property and being left with very little recourse for collecting the loan.

If you’d like more information about how to guard against the risk of loss from these line-of-credit mortgages, our staff is available to discuss your options. We can also help with other types of actions, such as tax deed applications, condominium or homeowners’ association foreclosures or quiet-title actions.

The post Prior Line-of-Credit Mortgages Pose Risks for Foreclosure and Refinance appeared first on ERW LAW.

A graduate of The American University in Washington, D.C. with a master’s degree in personnel management, Ms. Bedenbaugh has more than 25 years of high-level human resource management experience with professional services firms in the D.C area including Booz Allen Hamilton, Freddie Mac and Science Applications International. Most recently, she served as Director of Human Capital for PRIZIM Inc., an environmental sustainability firm near Washington, DC.

“A robust human resources function is not only essential to the well-being of our attorneys and staff, but equally important, ensures that our organization continues to achieve excellence in meeting the needs of our clients,” said Elizabeth Wellborn, Esq., principal of ERW. “Chloe’s background and professional experience is a perfect fit for our firm and we look forward to her leadership on these important activities.”

Since moving south, Ms. Bedenbaugh has become actively involved with sustainability issues in Florida and was recently nominated as chair of the Green Initiative Advisory Board for the City of Delray Beach. She has one daughter, who attends the University of North Florida in Jacksonville.

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About the Law Offices of Elizabeth R. Wellborn, PA
The law practice Elizabeth R. Wellborn, PA (ERW) was founded in 2003 as a creditors’ rights law firm focused on collections, real estate foreclosures, bankruptcy, evictions, REO, replevins and mechanic liens, as well as defense litigation related to each of those areas. ERW employs 300 individuals at offices in Deerfield Beach, Florida, and Getzville, New York. Principal Elizabeth R. Wellborn, Esq., has nearly two decades of experience as a litigator in both commercial and civil actions, and is recognized as an expert in protecting the rights of clients involved in legal disputes arising from creditor issues. For more information, visit www.erwlaw.com.

Media contact:
Matt Cochran
Cookerly Public Relations
(404) 816-2037
matt@cookerly.com

The post Elizabeth R. Wellborn, PA, names Veteran HR Executive Vice President of Human Resources appeared first on ERW LAW.