With the nationwide moratorium on mortgage foreclosures ending, millions of American homeowners are facing the prospect of receiving a letter from their lender advising them that, unless they bring their mortgage payments current, the lender will file a foreclosure complaint in court.  And thus begins a difficult process for the homeowner. Although the moratorium has expired, there are still some federal programs in place to assist borrowers who are facing foreclosure. But there are limits to how much help these programs can provide. For example, the U.S. Consumer Financial Protection Bureau has issued a new rule requiring lenders to contact a borrower in person or by phone within 36 days of the borrower’s first missed payment. Another rule requires them to send a written notice to the borrower within 45 days of a missed payment, encouraging the borrower to contact the lender and discuss options for workout plans. The problem with this and other federal programs is that they do not require the lenders to give a borrower any relief, they only require lenders to contact the borrower and discuss options.  Borrowers should definitely discuss workout plans with their lenders, but it’s important to have a backup strategy in case you can’t reach an agreement. At this point, your lender will almost certainly start the foreclosure process.  Let’s take a look at what happens then. It begins with the lender sending the borrower a notice that they are in default.  In Florida this is known as a breach letter.  It tells you how much you owe the bank, demands that you pay that amount to bring your loan current, and advises that, unless you pay them that amount, they will accelerate the loan (requiring you to pay the full balance of the mortgage) and foreclose on your property. If you don’t pay the lender as stated in the breach letter, they will file a complaint in foreclosure.  If you don’t file an answer to the complaint with the court within 20 days, the lender will get a default judgment and your house will be sold.  If you do file an answer, you’ll give yourself the time you need to work on achieving a settlement with your lender.  Time is your friend. Speaking of time, consider the impact of the COVID-19 pandemic on the court system.  Because of the shutdowns, the Florida court system has a backlog of nearly one million cases.  Court administrators predict that it will take three years to clear the backlog. What does this mean to the borrower facing foreclosure?  With such a huge backlog, the court will focus, first and foremost, on resolving cases any way they can.  Florida law provides for an expedited process to quickly grant foreclosing lenders a default judgment.  If you have been served with a foreclosure complaint, it’s important for you to act quickly to defend yourself.  Lenders won’t hesitate to request a default judgment, and the courts won’t hesitate to grant it. On the other hand, if you actively defend the foreclosure, then lenders, facing the possibility of their foreclosure cases taking years to be resolved, will be much more inclined to settle with the borrower.  And, given the sheer volume of cases that lenders have to manage, such settlements are likely to be more favorable than they would be in normal times. Foreclosure defense attorneys can advise you on your options. Tom Algeo, [email protected], is licensed to practice law in Florida and Georgia. He is a real estate attorney specializing in foreclosure defense. His Florida Foreclosure Guide is free to download at www.algeo.com.