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 which can pile up and become overwhelming.
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 with your mortgage, 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.
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.