Buying a home can be a scary experience. Imagine owning a house for 3 years, all payments have been made on time and paid off. When the fourth year rolls around, your work is reduced so you don’t have a job and a paycheck. If this is your fear, you may be one of the millions of Americans at risk with a subprime adjustable-rate mortgage (ARM). Which means your interest rate will rise to a much higher percentage later this year. On the other hand, you may be a prime borrower who chooses a non-traditional mortgage. You may be up to date on your current mortgage but fear corporate layoffs and rising costs.
Chances of avoiding foreclosure in Florida are improving. There are now many “We Buy Florida Homes” companies that specialize in rescuing homeowners from foreclosure. There are also new programs for refinancing, government solutions, and lenders willing to freeze interest rates depending on mortgages.
1.) How Do I Avoid Foreclosure In Florida? Do Your Homework.
The reason many homeowners end up with unaffordable loans is because they understood the terms of the loan or were scammed by moneylenders. “Most of the people we see are people who take loans they should never have,” said Phyllis Salowe-Kaye of Citizen Action, a major mortgage crisis counseling agency. Are you someone who is uninformed when entering your mortgage? Now is the time to make sure you don’t make that mistake again. To avoid foreclosure in Florida counseling here is a list provided by the US Department of Housing and Urban Development. Many other websites provide free advice for distressed homeowners on the websites of their attorney general, banking department, or real estate finance agency.
2.) Immediately Contact Your Lender
If your credit has been wasted, you will lose leverage. Also, for those who don’t already have credit problems, there is a new program to avoid foreclosure in Florida. Project Lifeline has six major lenders (Bank Of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual, and Wells Fargo) that have agreed to suspend the foreclosure process for 30 days for eligible borrowers who wish to keep their home in Sunshine. state .
3.) Open All Letters From Lenders
Subprime Lenders offer ARM mortgage resets in the mail months before interest rates are scheduled to reset.
4.) Be patient
“Too many people try to solve problems with advice that can be taken quickly,” says Salowe-Kaye. The quickest way to get out of a mortgage is through “We Buy Florida Homes” for more information click the link. For those willing to wait forever for a resolution, William Sanchez of the Tampa Bay Community Development Corporation in Clearwater, Florida has advice for you. , “You can’t get this done with one phone call.” The helpline is stuck, it takes forever to reach the person servicing your loan, and it’s impossible to know how many homeowners will actually survive. willing to make plans.” Be prepared to be bullied by the experts and choices of your lender.
5.) Call a Free Or Low Cost Housing Counselor
For HUD-certified counselors helping homeowners avoid foreclosure in Florida, visit the US Department of Housing and Urban Development.
6.) Get Qualified Experts To Help You Navigate The Foreclosure Process
Don’t stop at the home counselor—the next number you should call is a foreclosure attorney. Ignore attorney “quick fix” ads on tv, the internet, or phone calls. The only quick fix is to quickly sell your home to a “We Buy Florida Homes” company. They are the only company you can trust that will provide you with a free consultation and help you navigate the foreclosure process. To find a lawyer you can trust, contact Legal Services Corp.
If your income level is low enough, they will connect you with affiliate agents. Contact the Florida State Bar Association and seek out the county attorney’s association for further assistance.
7.) You May Be Eligible For Special Assistance.
The federal FHASecure program may be able to provide a fixed-rate refinancing option for homeowners who have adjustable mortgage rates and good credit ratings. Current and former members of the military who have served in the past 90 days may be eligible for the Servicemembers Civil Relief Act, which offers foreclosure protection.
8.) Bankruptcy is not an easy solution
Under current Florida State law, bankruptcy can stop or slow down a foreclosure. Seek legal advice from a trusted source before proceeding. Bankruptcy judges are not allowed to restructure debts owed on mortgages that cover primary residence. “Borrowers can file for Chapter 13 bankruptcy, which will temporarily hold foreclosure actions. The problem is that in order to maintain a Chapter 13 plan, borrowers in high-cost mortgages must be able to make forward mortgage payments, as well as to pay off a percentage of arrears and other debts each month.” said Josh Zinner of the Environmental Economic Development Advocacy Project in New York. Moreover, consider that assistance programs, such as Project Lifeline, are not available to borrowers who have experienced bankruptcy.
9.) Keeping Payments Current Is The Most Important Factor for Avoiding Foreclosure In Florida
Mindy Wright, a housing counselor in Elyria, Ohio, says people often make the mistake of paying off credit card bills before making their monthly mortgage payments. People do this because credit card companies contact them immediately and often use threatening tactics to get borrowers to pay. Banks, however, take a long time to communicate and only communicate by mail. Once the borrower receives the notification of default by mail, it is too late. The borrower now owes interest and late fees on top of the payments that were due. Usually lenders will not contact their borrowers until 60 to 90 days have passed. Credit card companies will harass you day and night until late payments are up to date. Wright advises homeowners to hold off on credit card companies and pay their mortgage payments first. “If you don’t pay your credit card bill, it may hurt your credit score, but foreclosure will have a much more negative impact on your credit score — plus you won’t have a place to live,” he says.
10.) Fasten Your Seat Belt.
Free yourself from luxuries like cable and Netflix. Doing so will give you bargaining power when sitting down to negotiate. Being willing to bring money to the table and being willing to cash in on assets like jewelry or cars will work in your favor. “Officers want to see you make sacrifices. Show effort,” said Michael van Zalinger, director of home ownership services for the Chicago Neighborhood Housing Service. When talking to the bank, be sure to collect payslips, benefit statements, and tax returns.
11.) Familiarize Yourself With Mortgage Practices Aimed To Avoid Foreclosure In Florida
The best solution is to refinance long-term mortgages that spread late payments over time and raise interest rates slightly. This option requires good credit and rarely applies to the average Florida homeowner. You may also not be able to afford the costs involved. The alternative is a repayment plan or loan modification.
The first resort that actually pays you is selling your home to the “We Buy Florida Homes” company.
