ForeClosure Disbursements: Who reaps the FinanCial reWarDs?
Real Property, Probate & Trust Law Section
Chairs: Elaine McGinnis - Law Office of Elaine McGinnis, P.A. and Kristin Morris - Shutts & Bowen
hillsborough’s residential
mortgage Foreclosure
mediation program is an
excellent resource to
F
oreclosure proceedings
are an unpleasant affair,
where generally there is
much to be lost by many
parties. Mortgagees may have
defaulted on their loans because
of unforeseen financial difficulties
and may be fearful of their
pecuniary and housing future.
Alternatively, a bona fide lender
made it possible for the mortgagee
64
negotiate a resolution
and avoid foreclosure.
to enjoy their dream home. A
mortgagee’s default requires a
mortgagor to begin legal proceedings
to inform the court that the
residence should be returned to
the bank, with the ultimate goal of
reselling it. These legal proceedings
increase the final debt to the
mortgagee, through accrued interest,
court costs and attorney’s fees.
Oftentimes, neither party is enriched
by this unfortunate process, and
lenders will offer loan modifications
or short sales to avoid foreclosure.
It is important to note that
mortgagors who wish to recoup
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JAN - FEB 2020
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HCBA LAWYER