The Florida Market is experiencing a huge boom. A good number of people are relocating to the Sunshine State, which has increased the demand. Although real estate prices have skyrocketed, millions of homeowners in Florida are faced with the problem of foreclosure. This is because they do not have the money to pay their mortgage payments anymore. Here are some tips that can help you avoid Foreclosure in Florida.
What is Foreclosure?
Foreclosure is a legal proceeding through which a lender seizes the title of a property and sells it to recover unpaid debt. This process is used when loans are in default and the borrower can’t or won’t pay their mortgage. When a foreclosure occurs, the property is auctioned off to the highest bidder, and the proceeds are then used to pay off any outstanding mortgage debts.
How To Avoid Foreclosure?
Foreclosure is always a possibility, no matter where you live. But Florida is one of the more foreclosures-prone areas in the country, and if you’re a homeowner there, it’s essential to know what you can do to protect yourself. A recent article from House Heroes guide spells out the steps homeowners should take to avoid foreclosure in the state. Here’s what they recommend:
The first step is to know your legal rights as a homeowner. There are several laws in place that protect homeowners from unfair foreclosure practices.
If your mortgage company starts foreclosure proceedings on your home, contact a foreclosure attorney immediately. This will help you understand your legal options and prevent your home from being taken away.
Also, this goes for every area of life – if you’re having trouble with your mortgage company or bank, try mediation before jumping straight into litigation. Most cases are settled during mediation, and it’s usually much less costly than going through the court system.
Plan in Advance
In Florida, the average homeowner facing foreclosure faces at least two years of litigation before losing their home to a bank. However, there are steps that homeowners can take to avoid foreclosure in Florida and ways to improve their chances of saving their home if they do face litigation.
You can ask your lender for an extension or modification of your loan or consider applying for a loan hardship program with your lender. If you have fallen behind on payments due to economic hardship and cannot regain financial stability, there may be alternative options for addressing your situation. In some cases, the lender may agree to accept a short sale or deed instead of foreclosure, whereby the property is sold without going through the foreclosure process.
If you cannot avoid foreclosure and want to get out from under your existing mortgage obligation, you may have the option of a short sale, in which the sale proceeds cover the outstanding loan balance. This will qualify you for a discharge of any remaining debt in bankruptcy court in most cases. If none of these options are available, the lender may proceed with a foreclosure action against you.
The economy has been bad for years, and it may get worse. Foreclosures are rampant, and many homeowners owe more on their mortgage than the home is worth. You can take steps to avoid foreclosure if you find yourself in a precarious position. This article was a way to throw some light on the situation and intelligent steps to avoid it.