Florida has one of the highest rates of foreclosure in the country. If you are currently living and looking to stop foreclosure in Florida, it is then critical for you to know the process you need to undergo. The foreclosure process followed in Florida is mainly judicial and that would, needless to say, embroil you in courts, cases, attorney fees and the works. The procedure leads to possession of your home by the lender and take up to 6 months.
Apart from the usual reinstatement, loan modification and refinancing arrangements that are possible, you can stop this from happening by following the steps mentioned below:
Contact the Loss Mitigation Department: The first you should you do if you want to stop your home from foreclosure is to contact the loss mitigation department of your mortgage company. It is easier said than done, since most homeowners might not be able to reach the proper employees who might be able to help you.
Sell Your Home: You can sell your home even if after a foreclosure lawsuit has been filed against you. Even though you might lose your home, it is better than the devastating consequences a foreclosure can have on your credit report. You may pay up the pending mortgage payments with the proceeds from the sale.
Short-sale: In case you don’t find a buyer who can’t or is not willing to pay an amount equal to the mortgage payment due, you might want to consider a short sale. You must next to see if you can contact the mortgage company to negotiate for a reduced pay-off of the mortgage payment due. You could enlist the services of a Miami-Dade county realtor for this.
Deed-in-lieu of foreclosure: You have no equity in your home and you couldn’t arrive at any other solution to stop the foreclosure in Florida, you could choose a deed-in-lieu of foreclosure. As the name suggests, you will handover the deed (and hence your home) to the lender and avoid the foreclosure lawsuit against you. You will also save the time and foreclosure expenses that are bound to arise. This however affects the income you report to the IRS. It is best if you approach a tax professional or attorney to help in this regard. You can take help from Legal Services of Greater Miami, Inc.’s Low Income Taxpayer Clinic to find suitable professionals.
File a bankruptcy: You might, as a last recourse, file a Chapter 13 bankruptcy case. It can be filed until the day your home is set for a foreclosure auction sale. It would still mean that you must be left with enough money to cover your monthly expenses and also have enough money to bring your current mortgage due to current within 60 months according to Florida state foreclosure laws. The foreclosure process stops if you choose this method. Avail debt counseling before you take this step.
Related posts:
- Stop Foreclosures in California — Don’t Let Your House Slip From Your Hands
- Stop Foreclosures in Michigan – Will You Let a Foreclosure Destroy You?
- How Foreclosures or a Short-sale Can Rip Your Credit Rating To Shreds
Tags: Avoiding foreclosures in Florida State, Stop Foreclosures, Stop foreclosures in Florida