FORECLOSURE

What is foreclosure?

Foreclosure is the process of a bank or lender taking possession of a property  from a borrower who has failed to keep up with their payments. In Florida, it’s also very common for Homeowners Associations to foreclose on properties in which the owner has stopped paying their dues. There are a number of ways to stop this process after it starts. However, if nothing is done, the property will eventually go to auction and be sold without your consent.

Foreclosure is one of the most stressful situations people can experience in life. The thought of losing your biggest asset – your home – can be unbearable at times. Fortunately, you have options. Whether you want to stay in your home, or cash out while the market is great, we are here to help. 

What are my options?

The first step is to decide whether you want to sell your home or try to stay in it. It is important to understand that once the initial foreclosure process has started, the lender is adding on more late penalties, interest, and legal fees.

Staying in your home

Hire an attorney – If you decide you want to stay, the first thing you should do is talk to an attorney. If you suspect an irregularity, then it should definitely be inspected. Consultations are usually free, and at the very least they can buy you some more time. We work closely with a number of foreclosure attorneys across Florida and can connect you with someone local that will defend you for a low, flat monthly fee. Some cases can drag on for years while some may end up being \dismissed. However, if nothing is done after the foreclosure notice is filed, the property could be auctioned off in as little as a few months.

Reinstatement – Negotiate a lump sum due by a certain date to get caught up on your payments. Be careful to watch for any fees or penalties that might drive up the cost in this option.

Loan modification – Sometimes banks will negotiate an agreement to change the original terms of your mortgage, to make payments more affordable. Banks approve loan modifications in less than 20% of overall cases, and will add on interest, late fees, their legal fees, etc on to your loan balance. This can drag on for months, and sometimes the foreclosure auction will take place before the bank approves or denies the modification. 

Refinancing – This can be an option in some cases. If you have equity in your home, another bank may be willing to pay off your loan and refinance your home with them.This can be a good option for some people, however  be wary of predatory lenders who offer unreasonable payment terms or fees. 

Bankruptcy – This costs thousands of dollars, ruins your credit, and will usually only buy you some time. 

Selling your home

Here’s some good news – it’s a great time to be a seller in Florida. The market has been climbing steadily over the last few years, and most people have at least some equity in their home. Even if you are upside down on the house, you still have options other than accepting foreclosure.

Short Sale – If you are unable to sell the home for more than what’s owed, the highest and best offer can be submitted to the bank and sometimes will agree to write off the difference. This can take months, and you will likely need an attorney and a patient buyer.

Assumption – This is where you find a buyer to assume the existing mortgage, and will still require approval from the lender.

Deed-in-Lieu of Foreclosure – If you have been unable to sell the house or get a short sale approved, sometimes your bank will let you turn over the deed and leave the house instead of going through the foreclosure process.  This still hurts your credit and ultimately the property is still lost.

If you get a contract to sell your home – in almost every case a judge will delay your foreclosure to allow time for you to complete the sale. We can write you a cash offer for your property, or help you get it on the market as soon as today. Our attorneys will file all necessary paperwork to give you enough time to sell the property at no cost to you. Click here to see why you should work with us.