Court costs are very different than an attorney’s fee. An attorney’s fee is the amount of money a client pays his or her attorney for representation. Court costs, however, are hard costs set by a third party (e.g., clerk of court) that are necessary for your case. When a lawsuit is filed on your behalf, a filing fee to initiate a suit is required to be paid to the applicable clerk of court. The filing fee is determined by the type of suit that is filed. Filing fees typically range from $200-$400. The party you are suing needs to be served with the court paperwork, which typically costs around $30 per person to effectuate service. Part of the court paperwork initially served on your opponent includes a summons which directs your opponent to respond to the complaint you filed. A summons typically costs approximately $10 per summons. Court Reporter costs are also very common. Court Reporters are necessary to preserve a complete record of oral arguments advanced by any party at all hearings and to preserve testimony at oral depositions. Court Reporters typically require an appearance fee of between $85-$100. Then, a Court Reporter will bill for additional time (i.e., excess of 1 hour). Next, if you ultimately need to order a transcript, the Court Reporter bills between $5-$7 per page for production. In the filing of a bankruptcy petition it is necessary to run a credit report to ensure that all creditors are included in the petition. A credit report costs approximately $30-$40 per person. The last most frequent court cost is mediation. Mediation is a process wherein the parties to a lawsuit have an opportunity to discuss their dispute and potential settlement options confidentially before an impartial mediator. Mediation usually costs between $150-$300 per hour.

A Foreclosure lawsuit or action is the formal judicial process of taking possession of a mortgaged property after a default has occurred. In Florida, an entity seeking to take possession of a mortgaged property via foreclosure action must institute a foreclosure lawsuit against a borrower in the county where the mortgage property is located. Foreclosure actions can be instituted against a borrower for many reasons but the most common is a borrower’s inability to make his monthly mortgage payments. At the beginning of a foreclosure action, a mortgagor (borrower/homeowner) is served a foreclosure summons and complaint. At this point, a person in foreclosure should contact a competent foreclosure defense attorney to discuss legal strategies, alternatives to foreclosure like loan modification or short sale, potential defenses, and all other scenarios.

When a mortgagee (lender/bank/servicer) obtains a final foreclosure judgment, included within the final judgment, is a precise amount of money fixed by the Court that the Court deems due and owing to the mortgagee. In order to satisfy this amount due and owing, the Court orders the property that is the subject of a foreclosure action to be sold and the proceeds of the sale are applied to the outstanding balance. If the balance is paid in full, there can be no deficiency. This is most commonly seen in instances where the market value of the property exceeds the debt owed. If, however, the current market value of the property on the date of the foreclosure sale is less than the amount fixed in the final judgment of foreclosure and the sale garners insufficient proceeds to satisfy the judgment, the mortgagee may be entitled to pursue the difference. This difference is considered the “deficiency” amount. A mortgagee has the option of pursuing a deficiency judgment in an existing foreclosure action or in a new action. It is best to deal with potential deficiency judgment issues before a foreclosure judgment is entered. A competent foreclosure defense attorney should be consulted with prior to a foreclosure judgment being entered against you to discuss options to avoid or minimize financial exposure.

A loan modification is a restructured loan that creates new terms for performance and prescribes the rights and obligations of a mortgagee (lender/bank/servicer) and a mortgagor (borrower). In order to obtain a loan modification a borrower usually needs to submit a complete financial package including verified income and a documented hardship. A modification does not always equal a lower monthly mortgage payment. In many instances, however, a typical modification will result in a more affordable monthly payment. This is most commonly accomplished by extending the maturity date or lowering the interest rate. A loan modification is a popular desired objective for many homeowners in foreclosure who wish to save their property. But evaluating whether a modification makes financial sense is a question to be addressed and analyzed by a competent foreclosure defense attorney.

A deed in lieu (DIL) is the conveyance of an interest in property (typically a deed) from one person or entity to another to satisfy a debt. The parties commonly engaged in such an arrangement are a mortgagee (lender/bank/servicer) and a mortgagor (borrower). A DIL usually requires the borrower to submit a complete financial package, including verified income and a documented hardship. If accepted, a mortgagee accepts a “deed” from a mortgagor as satisfaction of the mortgage. Prior to submitting a financial package for DIL review, typically a mortgagee requires a property to be listed for sale for a period of time. Although a mortgagee may accept a deed in lieu of foreclosure wherein a mortgagor avoids having a foreclosure judgment entered against him or her, a competent foreclosure defense attorney is necessary to aid in the submission process; but more importantly assess the possibility of a potential deficiency judgment and employ methods to avoid same.

Reinstatement occurs when a borrower/debtor/mortgagor brings his or her loan obligation current and resumes performance under an existing contract. Most commonly, reinstatement of a mortgage occurs when a mortgagor pays all past due amounts owed to a mortgagee including all past due fees, charges, costs, and interest in one lump sum; and after paying all arrears resumes making his or her normal monthly mortgage payment as though no payments were ever missed.

A short sale is a sale of property in which the proceeds generated from the sale are insufficient to satisfy the outstanding debt due and owing to a mortgagee (lender/bank/servicer), which has a secured lien or liens on the property. Example, your mortgage company lets your sell your home that is worth $50,000 to a buyer for $50,000 even though you owe your mortgage company $100,000. Even though a short sale occurs between a homeowner and a buyer, consent from the mortgagee is required prior to completing a short sale since it is the mortgagee that is accepting less than what it is owed. In order to submit a short sale offer to a mortgagee for review, a borrower is usually required to submit a good faith offer along with a complete financial package including verified income and a documented hardship. If accepted, mortgagee agrees to release its lien, and permits the sale to be completed. Upon completion of a short sale, any pending foreclosure action against a homeowner is dismissed. Like a DIL, although a mortgagee may accept less sale proceeds than its owed and a mortgagor avoids having a foreclosure judgment entered against him or her a result, a competent foreclosure defense attorney is necessary to aid in the submission process but more importantly assess the possibility of a potential deficiency judgment and employ methods to avoid same.

A short payoff is when a mortgagee (bank/lender/servicer) accepts less than the full balance owed for full satisfaction of a mortgage. A short payoff requires a lump sum payment. The short payoff amount typically mirrors current market value of a given property or slightly less. For example, if your property is worth $50,000 and you owe your mortgagee $100,000, but your mortgagee agrees to accept $50,000 for full satisfaction of your $100,000 mortgage obligation, this would be a short payoff. This is a very rare settlement option, but all settlement options can be fully discussed with a competent foreclosure defense attorney.

A repayment plan is a plan wherein the mortgagor (homeowner/borrower) agrees to repay the arrears owed to his or her mortgagee (bank/lender/servicer) over a specified period of time in addition to the mortgagor’s current monthly mortgage obligation. For example, if you owe your mortgagee $10,000 for missed mortgage payments, fees, charges, and costs and your normal monthly mortgage payment is $1,000, your mortgagor may permit you to make your $1,000 mortgage payment in addition to an extra $2,500 for a four (4) month period to bring your loan or obligation current. A mortgagee will typically only agree to a repayment plan for a maximum of twelve (12) months and will likely request a full financial package in order to consider a mortgagor for this option. This is a very rare settlement option, but all settlement options can be fully discussed with a competent foreclosure defense attorney.