When you first got your home in the great state of Florida, foreclosure was probably not on your mind. However, life can throw you many curveballs, including things like demotions, medical bills, and many other incidents. Regardless of how you got into your situation, there are ways that you can stop a foreclosure from happening.
Loan modifications
Mortgage lenders want to avoid foreclosure at all costs. This is because foreclosure costs both time and money. One great way to get out of foreclosure is to modify your existing mortgage loan with your lender. Some financial institutions will allow you extra time to make up missed payments, and others may allow you to spread out those missed payments over a period of time. If you have a lower income than you initially had when you bought the home, your mortgage lender may offer to extend the term of your loan to lower your mortgage payment.
Consider selling
One way to mount a foreclosure defense is to simply sell your home. You can use the proceeds from the sale of your home to pay off your existing mortgage loan. In some instances where your home is actually worth less than the amount that you owe on your mortgage, you may need to do a short sale.
Deed in lieu of foreclosure
If you know that it’s financially impossible for you to continue with your existing mortgage payments, you may want to consider returning the deed of the home back to the mortgage lender. By signing a deed-in-lieu of foreclosure, you’re essentially having the deed notarized and given back to the mortgage lender. When this happens, the lender will cancel the foreclosure action because it has full ownership of the home.
Foreclosures are not something that anyone wants to deal with. However, life does change, and foreclosures do happen. An attorney may be able to help you stop the process. By understanding the various ways that you can deal with a foreclosure, you can help to save your credit and emotional stability.