Strategies for Foreclosure with the Greatest Chance of Success
Are you behind on the mortgage and facing the real possibility of a foreclosure on your home? Before you give up or take desperate actions, talk to an experienced Tampa bankruptcy lawyer with a comprehensive understanding of how Florida foreclosure laws.
We can help you resolve this challenge to your advantage through one or more of the following strategies:
- By filing Chapter 13 bankruptcy, you may resolve your mortgage arrearage without regard to interest rates and strip any second mortgage from your home.
- You may have cause to fight the foreclosure by demonstrating that the mortgage holder has not kept sufficient records or on other reasonable grounds.
- A lender may agree to restructure your first mortgage by lowering interest rates, removing late fee penalties and/or perhaps even lowering the principal.
- You and the lender may agree to a “deed in lieu of foreclosure,” whereby you surrender the house in exchange for a total release from the mortgage. (Be sure to negotiate a release from deficiency if you agree to a deed in lieu of foreclosure.)
- The bank may agree to sell the house through a “short sale,” accepting the selling price as payment in full on the mortgage. (Be sure to negotiate a release from deficiency if you agree to have your house be sold in a short sale.)
- You may choose to stop making mortgage payments and ride out the foreclosure process while continuing to live in your home with no rent or mortgage payments for one to two years. Meanwhile, set aside the savings for a future rental, including the first and last months’ rent plus any required deposits. Many homeowners have managed to stay in their same neighborhoods through this method, while letting go of the responsibilities of home ownership.
Your home in foreclosure may serve as a lifeline during a time of financial stress, serving as a “bridge loan” of sorts while you continue to live there rent free and prepare for the future by means such as filing bankruptcy and saving for your next housing opportunity.
Facing foreclosure is not a matter of shame. Thousands of Americans have dealt with this financial challenge in the last few years. Have you been unable to keep up with the mortgage payments after an adjustable rate mortgage (ARM) allowed rising monthly payments that are no longer affordable for you? Perhaps a life event has reduced your income significantly, and you can no longer make the payments: a job loss, a medical crisis, a natural disaster or a divorce.
Whatever the reasons for your falling behind on your mortgage, it is important now for you to understand your rights if the mortgage lender forecloses on your home. Early advice from an experienced Florida foreclosure defense attorney can help you understand how Florida foreclosure laws apply in your case.
The prospect of foreclosure causes fear in the minds of many stressed debtors. However, for many of our clients, the future does not look as bleak as imagined even if a bank does foreclose on real estate. Seek experienced, qualified legal counsel to discover the best way to navigate the foreclosure process to your best advantage. You should discuss your situation with a lawyer before deciding how to respond to the threat of foreclosure.