Make us your home page
Instagram

Delaying foreclosure can lead to ethical 'heebie jeebies'

A report released this week showed that lenders filed 4,586 fresh foreclosure lawsuits in September against Tampa Bay homeowners. Banks auctioned or repossessed another 2,100 homes.

Associated Press

A report released this week showed that lenders filed 4,586 fresh foreclosure lawsuits in September against Tampa Bay homeowners. Banks auctioned or repossessed another 2,100 homes.

You have to give lawyer Mark Stopa points for bluntness.

He's one of a number of Tampa Bay foreclosure defense attorneys who have been marketing a simple strategy:

If you suspect foreclosure is imminent, stop making your monthly house payments. Hire a lawyer to frustrate the bank. Use the yearlong delay to build a nest egg with the deferred house payments. Enjoy living in the house mortgage-free.

"The biggest mistake homeowners make is to keep paying when they know they're in trouble," Stopa said this week.

When I wrote about this break-the-bank-and-save-a-bundle strategy online this week, a surprising number of readers gave Stopa cyberspace kudos for taking lenders down a notch.

The bitterness is understandable.

A report this week showed that lenders filed 4,586 fresh foreclosure lawsuits in September against Tampa Bay home­owners. Banks auctioned or repossessed another 2,100 homes. Each month presents a similar picture.

But the premeditated freeloading advocated by Stopa gives many people the ethical heebie jeebies. If you can't afford the mortgage, it's your duty to unload the house. In fact, about 90 percent of homeowners view foreclosure as a fait accompli and throw themselves at their lenders' mercy.

But Stopa made a compelling, if self-interested, case for resisting. His prime delaying tactic is asking a judge to dismiss a case under the loophole that the originating lender isn't the same one initiating the foreclosure. It can take bank attorneys half a year to sidestep the legal minefield.

Stopa assumes bankers are more amenable to modifying and refinancing mortgages once they've been slapped around a bit. He said lenders have stiffed consumers of their share of billions of dollars of stimulus the government poured into the banking system.

Stopa charges a $1,300 flat fee, though he admits that handling the initial paperwork consumes little more than 15 minutes of his time. More time-consuming legal wrangling sometimes comes later. So is it worth the money to hire a foreclosure attorney? It depends on how legally savvy homeowners are.

Lawyers make grand claims about fending off the foreclosure wolves, but remember that Florida's overstretched judiciary hasn't exactly been breaking speed records. I know a guy in Tarpon Springs who hasn't paid a dime on his mortgage in two years. The homeowner has no legal representation, but the sad sack lender has yet to give him a well-deserved heave-ho.

A foreclosure task force commissioned by the Florida Supreme Court concluded in August that both plaintiffs and defense attorneys sometimes play fast and loose.

A handful of Florida law firms — known as "foreclosure mills" amongst their detractors — handle 90 percent of cases for banks. Such assembly line processing inevitably invites errors.

But the task force also had tart words for the foreclosure rescue community. Defense attorneys are apt to file "boilerplate motions to dismiss" meant only to delay rather than illuminate.

The Supreme Court supports mandatory mediation when foreclosure threatens a principal residence. In the Florida courtrooms where it's been tried, lenders and homeowners have settled out of court 73 percent of the time.

Where does that court-unclogging recommendation leave attorneys like Stopa? Best not to worry. Fifty-thousand Tampa Bay foreclosure cases a year provide plenty of pickings.

Delaying foreclosure can lead to ethical 'heebie jeebies' 10/15/09 [Last modified: Thursday, October 15, 2009 11:19pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. SeaWorld cuts 350 jobs across company, including in Orlando

    Business

    ORLANDO — SeaWorld, which has struggled with declining attendance, announced Wednesday it is cutting 350 positions.

    Kalia, a 12-year-old orca whale, during rehearsals for the upcoming Orca Encounter at SeaWorld San Diego, on May 18, 2017. [Howard Lipin | San Diego Union-Tribune/TNS]
  2. As Clearwater Marine Aquarium expands, it asks the city for help

    Growth

    CLEARWATER — When Clearwater Marine Aquarium CEO David Yates saw an architect's initial design for the facility's massive expansion project, he told them to start all over.

    Clearwater Marine Aquarium Veterinarian Shelly Marquardt (left), Brian Eversole, Senior Sea Turtle and Aquatic Biologist (middle) and Devon Francke, Supervisor of Sea Turtle Rehab, are about to give a rescued juvenile green sea turtle, suffering from a lot of the Fibropapillomatosis tumors, fluids at the Clearwater Marine Aquarium Wednesday afternoon. Eventually when the turtle is healthy enough the tumors will be removed with a laser and after it is rehabilitated it will be released back into the wild.  -  The Clearwater Marine Aquarium is launching a $66 million renovation to expand its facilities to take in injured animals and space to host visitors. The aquarium is asking the city for a $5 million grant Thursday to help in the project. American attitudes toward captive animals are changing. Sea World is slipping after scrutiny on the ethics of captive marine life. But CEO David Yates says CMA is different, continuing its mission of rehab and release, it's goal is to promote education, not exploitation. JIM DAMASKE   |   Times

  3. One of the best places for investing in a rental house is in Tampa Bay

    Real Estate

    Two Tampa Bay ZIP Codes are drawing national attention.

    . If you're looking to invest in a house to rent out, few places are better than  ZIP Code 34607 in Hernando County's Spring Hill area, according to ATTOM Data Solutions.
[LANCE ROTHSTEIN   |  Times
 file photo]

  4. Tampa Chamber of Commerce announces small business winners

    Business

    TAMPA — The Greater Tampa Chamber of Commerce selected the winners of the 2017 Small Business of the Year Awards at a ceremony Wednesday night at the David A. Straz, Jr. Center for the Performing Arts. More than 600 attendees celebrated the accomplishments of Tampa Bay's small business community.

    Vincent Cassidy, president and CEO of Majesty Title Services, was named Outstanding Small Business Leader of the Year by the Greater Tampa Chamber of Commerce.

  5. International array of artists chosen as finalists for pier project

    Local Government

    ST. PETERSBURG — A diverse group of six artists will compete for a chance to install their work at the city's multimillion-dollar Pier District, expected to open in early 2019.