The idea of losing your home or business can be terrifying, especially if you are going through a tough time. And in Florida State, you only have twenty days to respond to a foreclosure, failure to which the bank might start taking action. So, how can you prevent a foreclosure after the forbearance period is over?
How a mortgage works in Florida
If you want to buy real estate, either for business or residential, normally, you would request the bank to give you the loan. When this happens, the bank would ask you to sign two documents, i.e., the promissory note and mortgage.
The promissory note is a declaration or a promise that you will pay all your loans under the conditions set by the bank. The mortgage, on the other hand, is the security the bank has on your property. In other words, it gives the bank to sell your property at a foreclosure when you fail to make payments.
When does a foreclosure start?
When you are 120 days behind on your mortgage payments, foreclosure could start. However, in other circumstances, such as when you violate the due on sale clause, the bank may start the foreclosure much sooner.
Defenses to foreclosure
Foreclosure defense can happen in the following ways:
- Fighting the lawsuit aggressively to prevent seizure.
- You could reinstate the loan by bringing the delinquent loan, including all the overdue fees, in one lump sum.
- You can negotiate with the bank to change or reduce the amount payable to an amount you can afford based on your current conditions.
- You can also negotiate with the bank to extend the time you need to pay the loan.
- Also, to avoid foreclosure altogether, you can negotiate with the bank to sell the property for an amount lesser than the outstanding debt, which it will accept and stop foreclosure.
Being faced with a foreclosure is tough. You risk losing your family home or your business building. A good foreclosure defense attorney could help you prevent foreclosure or counsel you on what to do to survive.