11 Tips for Avoiding Foreclosure in South Florida

11 Tips for Avoiding Foreclosure in South Florida

Buying a home can be a terrifying experience. Imagine owning a home for 3 years, all payments made on time and in full. By the time the fourth year is over, your work is winding down, leaving you without a job or a salary. If that’s your fear, you may be one of the millions of at-risk Americans with a subprime adjustable-rate mortgage (ARM). Which means your interest rates will rise to a much higher rate later this year. On the other hand, you may be a primary borrower who has chosen a non-traditional mortgage. At this point, you may be keeping up with your mortgage but fearing layoffs and rising costs.

Chances of avoiding foreclosure in Florida are improving. There are now many We Buy Houses in Florida companies that specialize in saving homeowners from foreclosure. In addition, there are new refinancing programs, government decisions and lenders who are willing to freeze interest rates depending on the mortgage.

1.) How do I avoid foreclosure in Florida? Do your homework.
The reason many homeowners end up with unaffordable loans is that they either misunderstood the terms of the loan or were scammed by loan sharks. “A lot of the people we’re seeing are people who got loans they shouldn’t have gotten at all,” says Phyllis Sallow-Kaye of Citizen Action, a major mortgage crisis counseling agency. Are you someone who was not informed when they took out their mortgage? Now is the time to make sure you don’t make that mistake again. To avoid foreclosure in Florida, consult here a list provided by the US Department of Housing and Urban Development. Many other websites provide free advice for struggling homeowners on the websites of their attorney generals, bank departments or housing finance agencies.

2.) Contact your lender immediately
If your credit is already gone, you will lose leverage. Also, for those who do not yet have a credit problem, there are new foreclosure avoidance programs in Florida. Project Lifeline has six major lenders (Bank Of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo) that have agreed to suspend the foreclosure process for 30 days for qualified borrowers who want to keep their Sunshine homes State.

3.) Open all mail from lenders
Top lenders are offering to reset ARM mortgages by mail months before a scheduled rate reset.

4.) Be patient
“Too many people try to solve the problem with quick takeaway tips,” Sallow-Kay says. ” The fastest way to get out of mortgage is through “We buy houses in Florida” for more information click the link. For those who are willing to wait forever for a decision, William Sanchez of Tampa Bay Community Development Corporation in Clearwater, Florida has advice for you. It says, “You can’t fix this with one phone call.” Helplines are jammed, it can take forever to get through to your loan servicer, and it’s impossible to know how many homeowners will actually hang on Yet “lenders are definitely more willing to develop plans.” Be prepared to be hounded by experts and options from your lender.

5.) Contact a free or low-cost housing counselor
For HUD-certified counselors helping homeowners avoid foreclosure in Florida, visit the US Department of Housing and Urban Development.

6.) Get a qualified expert to help you navigate the foreclosure process
Don’t stop at a housing counselor, the next number to call is a foreclosure attorney. Ignore attorneys advertising “quick fixes” on television, the Internet, or phone calls. The only quick fix is ​​to sell your home fast with a We Buy Houses Florida company. They are the only company you can trust to give you a free consultation and help you navigate the foreclosure process. To find an attorney you can trust, contact Legal Services Corp.

If your income level is low enough, they will connect you with a partner agency. Call the Florida State Bar and ask for a county bar for additional assistance.

7.) You may be eligible for special assistance.
The federal FHASecure program may be able to provide a fixed-rate refinance option for homeowners who have an adjustable-rate mortgage and good credit. Current and former members of the military who have served in the past 90 days may qualify for the Servicemembers Civil Assistance Act, which offers foreclosure protection.

8.) Bankruptcy is not the easy way out
Under current Florida state law, bankruptcy can stop or delay foreclosure. Seek legal advice from a trusted source before proceeding. Bankruptcy judges are not authorized to restructure debt owed on a mortgage covering a primary residence. “Borrowers can file for Chapter 13 bankruptcy, which will put a temporary stay on a foreclosure action. The problem is that in order to maintain a Chapter 13 plan, a high-cost mortgage borrower must be able to make mortgage payments going forward, as well as pay off a percentage of delinquencies and other debts each month,” says Josh Zinner of the Project for neighborhood economic development advocacy in New York. Also, note that relief programs like Project Lifeline are not available to borrowers who have filed for bankruptcy.

9.) Keeping payments current is the most important factor in avoiding foreclosure in Florida
Mindy Wright, a housing consultant in Elyria, Ohio, says people often make the mistake of paying credit card bills before making their monthly mortgage payment. People do this because credit card companies call them immediately and often use threatening tactics to get the borrower to pay. However, banks take a long time to communicate and communicate only through mail. Once the borrower receives the default notice in the mail, it’s too late. The borrower already owes interest and late fees on top of the late payments. Typically, lenders will not contact their borrowers until 60 to 90 days have passed. Credit card companies will harass you day and night until the late payment becomes current. Wright advises homeowners to defer to credit card companies and pay their mortgage payments first. “If you don’t pay the credit card bill, it can ruin your credit score, but a foreclosure will have a much more negative impact on your credit score — plus you’ll have nowhere to live,” she says.

10.) Fasten your seat belt.
Get rid of luxuries like cable and Netflix. This will give you bargaining power when you sit down to negotiate. A willingness to bring any money to the table and a willingness to cash in on assets like jewelry or a car will work in your favor. “The attendants want to see you make sacrifices. Show some effort,” says Michael van Zalinger, director of homeownership services at Neighborhood Housing Services of Chicago. When you speak to the bank, be sure to collect pay stubs, income statements and tax returns.

11.) Learn about Florida foreclosure avoidance mortgage workouts
The best solution would be to refinance into a long-term mortgage, spreading the late payments over time and slightly increasing the interest rate. This option requires good credit and is rarely applicable to the average Florida homeowner. Also, you may not be able to afford the fees involved. Alternatives would be a repayment plan or a loan modification.

The first option that actually pays you is to sell your house to a We Buy Houses Florida company.

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