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 full. 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 means your interest rates will rise to a much higher percentage later this year. On the other hand, you may be a prime 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. As well 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 Immediately
If your credit has already gone down the drain, you will lose leveraging power. Also, for those who do not yet 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 process 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 through 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 through 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 it’s impossible to know how many homeowners will actually hang on to their homes. Still, “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 Process
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 process. To find a lawyer you can trust, contact Legal Services 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 halt 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 primary residence. “Borrowers can file Chapter 13 bankruptcy, which will put a temporary hold 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 available 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 immediately and often use threatening tactics to get the borrower to pay. Banks, however, take a long time to communicate and solely communicate through 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 don’t pay the credit card bill, it might ruin your credit score, but a foreclosure will impact your credit score far more negatively-plus you won’t 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 power 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 services for Neighborhood Housing Services of Chicago. When talking to the bank be sure to assemble pay stubs, benefit 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 afford the fees involved. Alternatives would be a repayment plan or a loan modification.
The first resort that actually pays you would be to sell your house to a “We Buy Houses Florida” company.