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Sheryl Ann Edwards
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Sheryl Edwards’s Answers

223 total


  • If we received a 1099-C from our mortgage company, do we still owe for a deficiency judgement.

    Our house officially foreclosed at auction Sept 24 2012. We stopped paying in June of 2011 at the banks 'suggestion' in order to find us eligible for a short sale. My husband took a job in another state and we had bought a house there. We applied ...

    Sheryl’s Answer

    A 1099-A or 1099-C is a form filed by the lender with the IRS for tax purposes to report transactions for those who have walked away from an underwater mortgage, have lost a property to foreclosure or have sold a property in a short sale.

    Generally, when you sell a property, you would report the sale to the IRS on your tax return. In a normal sale, the closing attorney or title company would report the sale to the IRS using a form 1099-S. The 1099-A is the form filed by the lender that simply reports that the lender has acquired the property, either through short sale, deed in lieu or foreclosure. Form 1099-A reports the date of the sale and the value of the property on the date of transfer. You will need these numbers to report the transfer to the lender (either through deed in lieu, short sale or foreclosure) to the IRS on your tax return.

    A 1099-C is typically filed by the lender with the IRS when the lender has issued a waiver of deficiency or has otherwise released you from repaying any amount of the debt. While it appears that you have a defense to the current collection efforts on the deficiency, you should speak with an experienced foreclosure defense attorney to be sure your rights are protected.

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  • What is the time limit for lender to respond to a defendants Motion to dismiss ? Mortgage foreclosure.

    I received a lis Pendens/ Summons in Sept.2012. I filed a motion to dismiss on time in Oct 2012. The Plaintiff filed a motion for default in June 2013. The notice of default was not entered July 2013 because everything was filed on time. How lo...

    Sheryl’s Answer

    The rules of procedure require that the Plaintiff file something - anything - at least once every 12 months. If there is no record activity for a period of 10 months, the court could send the Plaintiff a notice indicating that it intends to dismiss the case unless a filing is made within 60 days.

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  • What are my options if a deed in lieu contract states the bank has the right to pursue judgement? Do I have other options?

    2 loan mods submitted, house listed as short sale for nearly a year with a last min change in potential buyers employment which cancelled the contract. Bank agreed to deed in lieu reserving the right to seek judgement after the house is turned ove...

    Sheryl’s Answer

    Based on the facts that you have stated in your question, there should be no reason why you would not be able to qualify for a short sale or deed in lieu of foreclosure with a waiver of deficiency if your loan servicer is one of the big national servicers (Bank of America, Wells Fargo, Chase). If your loan is with a small community bank or a credit union, the waiver of deficiency would likely be very difficult to obtain under any circumstances - they do not participate in the government programs and do not receive any type of incentive for granting you relief from your underwater mortgage.

    Your inquiry did not specify who was working with the servicer to negotiate the terms of a short sale or deed in lieu. If you have not hired an attorney who is experienced in dealing with these types of issues, you should hire one now, before you agree to anything with your lender.

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  • Can I stay in my house through a short sale?

    foreclosure sale is looming and I have found a buyer but it may take some time.

    Sheryl’s Answer

    If you can't close your short sale before the foreclosure sale, you or your attorney should call the lenders' foreclosure attorney and ask to have the foreclosure sale postponed.

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  • If a plaintiff in a civil lawsuit does not exist?

    There was a foreclosure. The plaintiff was "La Salle Bank NA as Trustee for Merrill Lynch First Franklin Mortgage Loan Trust, MORTGAGE PASS-THROUGH Certificates . . .". Our research indicates that there was no such entity. There was a "La Salle...

    Sheryl’s Answer

    Believe it or not, this happens all the time in mortgage foreclosure cases. That is part of the reason why foreclosures are such a mess in Florida.

    Your question does not specify whether the action is pending or has concluded. If the action is pending, you have a defense for lack of standing and capacity to sue. These are good defenses - you should consult with an attorney experienced in foreclosure defense in your area to properly preserve them in your case.

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  • Does a final judgment of foreclosure mean the bank now owns the property or is it still legally owned by person foreclosed on?

    Uniform Final Judgment Of Foreclosure Backlog Proj 760,260.22 COBB 062513 MLD 6 SALE 082713 THE BANK OF NEW YORK MELLON. The property was to be sold by the court on 8/27 but the sale was canceled as a motion to cancel sale was made by one of ...

    Sheryl’s Answer

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    Until a foreclosure sale is held and a certificate of title is issued by the clerk of court, the borrower-property owner still owns the property.

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  • Foreclosure question about bank mergers and the two-dismissal rule

    LaSalle Bank attempted to foreclose on me in 2008 and ended up voluntarily dismissing the case due to re-establishment of lost note. LaSalle Bank merged with US Bank in late 2008/early 2009. US Bank then attempted to foreclose on me in 2009 and ...

    Sheryl’s Answer

    As you are probably aware, the "two dismissal rule" states that if a plaintiff voluntarily dismisses a lawsuit based on the same facts and circumstances (including the same payment default) on two separate occasions, a defense is established as to any future attempt to obtain a judgment based on those same facts and circumstances. The facts of your situation are more complex than most and you should consult with an experienced foreclosure defense attorney in your area to determine if you can defend the 2012 action based on the "two dismissal rule". Good luck.

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  • I foreclosed on condo in Mia, Fl. Am I responsible for the full amount of unpaid maintenance dues, late fee & their atty. fees?

    I foreclosed on condo in Mia, Fl. Am I responsible for the full amount of unpaid maintenance dues, late fee & their atty. fees?

    Sheryl’s Answer

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    If you were the first mortgagee, your exposure is limited to the lesser of 1% of the original principal balance of the loan or 12 months of dues, whichever is less if you had included the association as a defendant in the foreclosure action.

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  • What is the statue of limitations on a foreclosure action in Florida if you have not made a payment in 5 years?

    I was served a lis pendens / summons for foreclosure in April 2008. It was answered an finally dismissed in October 2011. Then I received another Complaint lis pendens, same Plaintiff, different attorney in September 2012. It was answered right ...

    Sheryl’s Answer

    • Selected as best answer

    I agree with Attorney Polani - in your case, if the acceleration of the debt occurred with the filing of the first complaint in April 2008, the 5 year statute of limitations would not have run by the filing of the second complaint in September 2012. However, if you are successful in having the second action dismissed without leave for the Plaintiff to file an amended complaint, a defense to any third action that is filed would be that the claim would be barred by the SOL. It sounds like you are defending the action yourself. I would recommend that you consult with an attorney experienced in foreclosure defense to review your case.

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  • As a 3rd party winning bidder, am I responsible to pay the HOA charges acquired by previous owner as: interest, violations, etc

    I bought a house on a judicial sale in Orlando, FL. with a lien registered in 2010 of $2,280 for unpaid HOA assessments from 2007 to 2010, including legal charges. I called the current Management Co to settle the unpaid amount and got a Statemen...

    Sheryl’s Answer

    Section 718.116 provides for a 1 year limitation on past due association dues in a foreclosure or deed in lieu of foreclosure only to the first mortgagee or its successors (meaning someone who bought the property from the first mortgagee). Since you bought the property at the foreclosure sale, you are responsible for the entire amount of past due fees. This is a nuance in the law that many, like yourself, find out the hard way.

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