Are you one of the many homeowners in Florida who receives a foreclosure notice in the mail? There’s 5 Ways to stop Foreclosure in Florida. Foreclosures are not a sudden event; there is a lot of warning before the lender implements the final procedure. To stop foreclosure in Florida you need to start taking actions to avoid the consequences of foreclosure.
Putting your head in the sand and hiding from your problems is the worst thing you could do regarding financial issues. Instead, it is always better to face your problems head-on and make the best choice by understanding all of your options. The time to take action is when you receive the first notification. Otherwise, the consequences of your failure to act are heavy.
Not only will you be evicted from the property at a moment’s notice, which is in itself a stressful way to live day-to-day, you will also lose any equity in the home. Regrettably, you could still be on the hook for any remaining debt on the mortgage as well.
As for the damage to your credit, the misery of foreclosure simply does not end there; it reaches beyond your credit history and could harm your employment opportunities. A foreclosure can also have adverse effects on your housing options, and you won’t be able to qualify for a Fannie Mae mortgage for at least seven years.
Read on as we explore five ways you can stop foreclosure in Florida.
Negotiate And Ask For Loan Modification
A loan modification is a permanent change to the terms of your mortgage loan which can make your payments more affordable.
Negotiating with the lender before proceedings begin is one way to stop foreclosure in Florida if there is still enough time. Your lender may be more open to negotiating with you than you may believe. As foreclosures can take years to finalize, an average of 830 days, lenders have a great deal of leeway in giving leniency to borrowers to reorganize their finances and overcome temporary setbacks when possible. There are also programs in place that you may qualify for that could offer assistance in times of hardship.
While a short sale will not save your credit, it is less damaging than a foreclosure. If you have defaulted on your mortgage loan, a short sale is another way you can stop foreclosure in Florida. With the lender’s approval, the home is sold at current market value, even if that is far below the amount still owed on the mortgage.
However, a short sale is impactful on your credit score, and you may not have the immediate ability to attain another mortgage. You may also need to consult your tax professional, as second mortgages for uses other than home improvement may now be considered taxable income.
Filing for bankruptcy can stop the foreclosure process in its tracks. When you file for bankruptcy, an automatic stay goes into effect, and your creditors cannot collect debts or initiate a foreclosure.
Filing for a chapter 13 bankruptcy may be a way you can stop foreclosure in Florida. For example, suppose you have overcome the circumstances that interrupted your income stream, and you’re now able to arrange a chapter 13. In that case, you will be restructuring your debt, making your regular mortgage payments along with payments on the arrearage, typically for a period of up to five years. Chapter 7, on the other hand, will give you a little breather while you stall payments temporarily and play catch up.
Deed In Lieu
Signing the mortgage back over to the lender and walking away, known as a deed in lieu, is another way you can stop foreclosure in Florida, satisfying the loan. However, you should be aware that junior liens, such as equity loans attached to the property through the deed, are undesirable to the lender and may prevent you from taking this route. In this scenario, foreclosure is more favorable for the lender because it will wipe out those existing debts. A lender will not act upon this option without your reaching out in writing and stating to the lender that you’re making this offer voluntarily.
The good thing about going the deed in lieu route that It means you give up ownership of the property, and the bank forgives your mortgage debt. It can be a good solution if you cannot afford your mortgage payments and owe more than your home is worth. However, it can negatively impact your credit score, and the IRS may consider the forgiven debt as taxable income.
Quality Properties Of Northwest Florida LLC
Selling your home directly to Quality Properties Of Northwest Florida LLC may be the best way you can stop foreclosure in Florida. It is crucial that whatever action you intend to take is taken quickly to avoid paying the heavy penalties associated with a foreclosure for years to come, and Quality Properties Of Northwest Florida LLC is poised to step in and help you immediately.
We will provide you with a guaranteed closing date, often in a matter of a few weeks or less. If you are not ready to move, we are happy to arrange a leaseback at fair terms; the direct buyers at Quality Properties Of Northwest Florida LLC will work with you to help make the transition as smooth as possible for you and your family.
Selling directly to Quality Properties Of Northwest Florida LLC is a quick and easy process; you avoid paying high real estate commissions, the expenses of listing and marketing the property, the hassles of showings, and there is no need to worry about making any repairs.
A direct buyer from Quality Properties Of Northwest Florida LLC will lay out all of the numbers for you because our goal is to be certain you agree that our offer is fair. We do this at Quality Properties Of Northwest Florida LLC because we want you to feel good about the deal long after closing.
Why not see how much Quality Properties Of Northwest Florida LLC will pay for your house right now, as-is for cash? Contact Quality Properties Of Northwest Florida LLC today at 850-346-4995.
While Foreclosure is a difficult situation to be in. There are ways to get out of foreclosure to avoid facing the consequences. Keeping in mind starting with loan modification, then a short sale is another way to get out of foreclosure. bankruptcy, deed in lieu, and last but not least, sell your home to a cash buyer.
You get to choose which option is good for you in the situation you’re in and not all situations are created equal. Because what works for one homeowner may or may not work for you. It’s important to take action by understanding your position in foreclosure and your current personal situation.
Contact your bank, a real estate attorney, or a local non-profit housing organization to discuss the possibilities. You have options to stop foreclosure – Don’t stop searching for ways to stay in your home.