11 Tips For Avoiding Foreclosure In South Florida
Purchasing a home can be a frightful experience. Imagine owning a home for 3 years, all the payments have been made on time and in complete. When the fourth year rolls around, your job downsizes leaving you without work and a paycheck. If this is your fear you may be one of the millions of at-risk Americans with a subprime adjustable-rate mortgage (ARM). Which method your interest rates will rise to a much higher percentage later this year. however, you may be a chief borrower who chose a nontraditional mortgage. You may be up to date at this time on your mortgage but have a fear of company layoffs and expenses rising.
The odds of avoiding foreclosure in Florida are improving. There are now many We Buy Houses Florida companies who specialize in saving homeowners from foreclosure. in addition there are new programs for refinancing, governmental solutions, 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 in unaffordable loans is that they either did understand the terms of the loan or were swindled by loan sharks. A good portion of the people we see are folks who received loans they should never have gotten in the first place, says Phyllis Salowe-Kaye of Citizen Action a large mortgage crisis counseling agency. Are you someone who was uninformed when entering into your mortgage? Now is the time to make sure you do not make that mistake again. For avoiding foreclosure in Florida counseling here is a list provided by the U.S. Department of Housing and Urban Development. Many other websites provide free advice for distressed homeowners on their attorney general, banking department or housing finance agency websites.
2.) Contact Your Lender closest
If your credit has already gone down the drain, you will lose leveraging strength. Also, for those who do not however have a credit problem, there are new programs for avoiding foreclosure in Florida. Project Lifeline has six major lenders (Bank Of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual, and Wells Fargo) who have agreed to suspend the foreclosure course of action for 30 days for qualified borrowers seeking to keep their homes in the Sunshine State.
3.) Open All Mail From Lenders
Subprime Lenders offer a reset of ARM mortgages by the mail months before the interest rate is scheduled to reset.
4.) Be Patient
Too many people are trying to resolve the problem with quick takeaway advice, says Salowe-Kaye. The fastest way to relief from a mortgage is by a We Buy Houses Florida for more information click the link. For those who are willing to wait an eternity for a resolution, William Sanchez of Tampa Bay Community Development Corporation in Clearwater, Florida has advice for you. He reports, You cannot get this resolved with one phone call. Helplines are jammed, it can take an eternity to reach the person servicing your loan, and its impossible to know how many homeowners will truly hang on to their homes. nevertheless, lenders are definitely more willing to work out plans. Be prepared to be dogged by experts and options from your lender.
5.) Contact A Free Or Low-Cost Housing-Counselor
For HUD-certified counselors that assist homeowners with avoiding foreclosure in Florida visit the U.S. Department Of Housing and Urban Development.
6.) Get A Qualified Expert To Help You Navigate The Foreclosure course of action
Do not stop at a housing-counselor the very next number you should be calling is a foreclosure attorney. Ignore lawyers advertising quick fixes on tv, the internet, or telephone calls. The only quick fix is selling your home fast to a We Buy Houses Florida company. They are the only company you can trust who will give you a free consultation and help you navigate the foreclosure course of action. To find a lawyer you can trust, contact Legal sets Corp.
If your income level is low enough they will connect you with an affiliated agency. Call the Florida State Bar Association and search for a county bar association for further assistance.
7.) You May Be Eligible For Special Assistance.
The federal FHASecure program may be able to provide a refinance option with a fixed rate for homeowners who have an adjustable-rate mortgage and a good credit rating. Current and former members of the military who have served within the past 90 days may be eligible for the Servicemembers Civil Relief Act offering foreclosure protection.
8.) Bankruptcy Is Not The Easy Way Out
Under the current laws of the State Of Florida, bankruptcy can stop or slow foreclosure. Seek legal advice from a trusted source before proceeding. Bankruptcy judges are not permitted to restructure debt owed on a mortgage covering a dominant residence. Borrowers can file Chapter 13 bankruptcy, which will put a permanent keep up on a foreclosure action. The problem is that in order to sustain the Chapter 13 plan, a borrower in a high-cost mortgage has to be able to make payments in the mortgage going forward, and also to pay off a percentage of the arrears and other debts each month, says Josh Zinner of the Neighborhood Economic Development Advocacy Project in New York. More so consider that relief programs such as Project Lifeline, are not obtainable to borrowers who have entered bankruptcy.
9.) Keeping The Payments Current Is The Most Important Factor of Avoiding Foreclosure In Florida
Mindy Wright, a housing counselor in Elyria, Ohio, says people often make the mistake of paying off credit cards bills before making their monthly mortgage payment. People do this because credit card companies call them closest and often use threatening tactics to get the borrower to pay. edges, however, take a long time to communicate and solely communicate by the mail. Once the borrower receives the notice of default in the mail it is already too late. The borrower now owes interest and late fees on top of the payments past due. 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 is up to date. Wright advises homeowners to put off the credit card companies and pay their mortgage payment first. If you dont pay the credit card bill, it might ruin your credit score, but a foreclosure will impact your credit score far more negatively-plus you wont have a place to live, she says.
10.) Fasten Your Seatbelt.
Rid yourself of luxuries such as cable and Netflix. Doing so will give you bargaining strength when sitting down for a negotiation. Being willing to bring any money to the table and willing to cash in assets such as jewelry or a car will play in your favor. Servicers want to see you make sacrifices. Show some effort, says Michael van Zalinger, director of home ownership sets for Neighborhood Housing sets of Chicago. When talking to the bank be sure to assemble pay stubs, assistance statements, and tax returns.
11.) Familiarize Your Self With Mortgage Workouts Aimed For Avoiding Foreclosure In Florida
The best solution would be to refinance into a long-term mortgage spreading out the late payments over time and raising the interest rate slightly. This option requires good credit and is rarely applicable for the average homeowner in Florida. You also may not be able to provide the fees involved. Alternatives would be a repayment plan or a loan alteration.
The first resort that truly pays you would be to sell your house to a We Buy Houses Florida company.