The American dream is a great thing in this country. But sometimes dreams don’t last. Foreclosure can be a scary prospect, but it’s not the end of the road. In this blog post, I will provide help for foreclosure in Pensacola we’ll talk about three ways to avoid foreclosure in Pensacola, Florida. If you’re facing this difficult situation, don’t worry – We provided you with some tips in this article to help you in the face of the boogeyman, the nightmare of foreclosure. So keep reading to be ready for the lenders, and banks so you know what to do. And get help for foreclosure in Pensacola.
Few things are more devastating to families than the prospect of foreclosure. You own your home and you love it — it serves you well. Yet, due to unfortunate circumstances, foreclosure may seem imminent. If you’re looking for help for foreclosure in Pensacola, there’s 3 ways to avoid foreclosure.
For local Florida families facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
Fortunately, you have options available to you here in Florida — perhaps more options than you realize. There are many strategies that help for foreclosure in Pensacola; these are legal foreclosure avoidance strategies you can implement to help you resolve your foreclosure issue so you can get on with your life.
In this blog post, you’ll read about 3 ways that you can avoid foreclosure (there are other ways to avoid foreclosure as well). The goal of these strategies is to help you legally and ethically avoid foreclosure and reducing the pain and frustration that you’re facing, while minimizing any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but you’ll probably be able to find at least one of the three ways that will work for you.
Strategy #1: Work out a deal with your lender Or Loan Modification
If you don’t ask you will never know. communicate with your bank to understand and to know what they can help you with. A loan modification is to get help from your lender to change your loan terms to make it more affordable for you to be able to make your mortgage payments without any problems.
The first strategy is called a “foreclosure workout”. In a foreclosure workout or “loan modification”, you’ll sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation but you’d like to figure something out so you can stay in your house and continue to pay your mortgage.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages, so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe.
You can do a loan modification to help you with your financial troubles by reducing your interest rate, extending your loan term so you can have lower payments, or changing your loan type that’s more flexible. For you to be approved for a loan modification, you need to demonstrate to your lender that you’re having financial troubles. The good news is that there are many nonprofit organizations and government agencies that offer free loan modification assistance, such as the Florida Housing Finance Corporation.
Strategy #2. Short sale help for foreclosure in Pensacola
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
A short sale is another option that can help you avoid foreclosure. In case of a short sale. You have to agree with the home buyer on a price that both of you can agree on. The home sale price is usually less than the amount you owe for the mortgage. The lender agrees to accept the proceeds of the sale as full payment of your mortgage.
There are many real estate home buyer companies and professionals who specialize in short sales, so be sure to consult with a trusted professional home buyer company to walk you through the process. A trusted home buyer company like Quality Properties Of Northwest Florida LLC. We can help you and walk you through the whole process of a short sale.
So, Why A short Sale Is A good Option?
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Pensacola since organizations like Quality properties of Northwest Florida LLC help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.
Strategy #3. Deed in Lieu of Foreclosure
If you’re unable to sell your home in a short sale or qualify for a loan modification, you may be able to avoid foreclosure by offering your lender a deed in lieu of foreclosure. In a deed in lieu of foreclosure, you essentially sign over the ownership of your home to your lender in exchange for a release from all mortgage obligations. In some cases, lenders will accept a deed in lieu of foreclosure to avoid the legal costs and time associated with filing for foreclosure. In other cases. Some lenders might insist on foreclosing on your property.
If your situation is more complicated than just having the lender agree with Deed in lieu of foreclosure. For example. If they have strict requirements on the outstanding balance, Contingencies for a grace period, or days of delinquent. We highly recommend seeking legal advice from an attorney who has a good reputation.
At Quality Properties Of Northwest Florida LLC. We don’t give any legal advice here. We just giving you your options and what’s the possibilities to get you out of this sticky situation. A trusted real estate professional attorney can help you if the lender won’t agree to this option so you can better protect yourself and your credit.
Strategy #4. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance toolbelt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
Filing for bankruptcy, though, is a little extreme: it may require you to sell off some of your assets in order to pay off your creditors. And, a bankruptcy will remain on your credit score for many years, which could impact everything from getting a loan to getting a car… even getting a job. So this shouldn’t be your first line of defense!
An article was written By Lisa Larson on Dec. 24, 2019 With the title “Can’t make your mortgage payments? Here are your options” Here’s a link to her article https://realestate.usnews.com/real-estate/articles/cant-make-your-mortgage-payments-here-are-your-options – She stated in her article the following..
“Today, the number of foreclosures is a mere fraction of what it was during the financial crisis over a decade ago and down 18% from 2018, according to property information company ATTOM Data Solutions. However, there were still nearly 300,000 foreclosure filings in the first half of 2019. Foreclosure has devastating effects, not only on your housing situation but also on your finances. A foreclosure will send your credit score plummeting and will make it incredibly difficult to buy, or even rent, for several years afterward.”
And because of the impact that bankruptcy will have on your credit and the impacts that will leave you will, with the inconvenience of not be able to buy anything with credit, like another house, a car, or any necessities in life. W have left this option as your last resort.
Facing foreclosure can be overwhelming, but you don’t have to do it alone. There are many options available to you, and we’ve covered three of the most common in this blog post. If you’re facing foreclosure in Pensacola, Florida, consider applying for a loan modification, exploring a short sale, or offering your lender a deed in lieu of foreclosure. And the last resort is Bankruptcy.
Remember, there is always help available – don’t hesitate to reach out to a professional for guidance. By taking the right steps we provided you in this article and having the right plan in place, you can avoid foreclosure and keep your home.