5 Ways to Save Your Home from Foreclosure
When the housing boom ended in 2005, mortgage rates increased, affordability conditions rapidly disintegrated and investors speculating on pre-recession inflation rates began pulling out of the housing market. With the plunging confidence of home buyers combining with a volatile job market and the sidelining of trade-up and resort purchasers, foreclosure rates quickly reached rates commiserate with those of the Great Depression.
Because the economy and housing market virtually collapsed overnight, many homeowners had no idea what to do about when confronted with a foreclosure notice. Most had no choice but to pack up their belongings and find another place to live. Credit scores plummeted as well, leaving victims of foreclosure without jobs and without sufficient credit to rent another home or apartment.
Fortunately, alternatives to foreclosure exist today that are viable and helpful to those who do not want to suffer credit damage or the embarrassment of having a foreclosure marring their otherwise clean credit history. Mansfield Bronstein, PA can assist you in pursuing one of these alternatives by providing expert advice, filing the proper documents with the court and representing you when negotiating to your benefit with mortgage companies. Specifically, our attorneys will sit down with you and discuss five methods to avoiding foreclosure that many homeowners take advantage of when faced with an unwanted foreclosure.
- Mortgage Modification—homeowners who fall behind on mortgage payments due to unexpected financial crises but are still able to continue making payments at reduced amounts may qualify for a mortgage modification. This usually extends the amount of time it takes to pay off your mortgage but lowers payments so you can afford them and avoid foreclosure.
- Short Sale—after assessing your situation, Mansfield Bronstein, PA attorneys may be able to negotiate a short sale with your lender that can prevent foreclosure and keep your credit rating intact. Short sales are sales of homes about to be foreclosed in which proceeds from a sale do not compensate for what is owed. However, since the bank receives all funds from the sale and does not have to pay any foreclosure expenditures as a result of avoiding foreclosure, lenders often see this as a “win-win” situation and accept the establishment of a short sale agreement.
- Deed in Lieu of Foreclosure—by signing the deed of a home in foreclosure over to the holder of the mortgage, the homeowner effectively removes himself from the foreclosure process. In addition, the lender must waive the right to a “deficiency judgment” in the event they agree to a deed in lieu of foreclosure proceeding. This means they cannot demand that the homeowner remit any amounts not recovered when the home is sold.
- On your behalf and under certain circumstances, Mansfield Bronstein, PA may negotiate a forbearance agreement with your mortgage company that allows you to make smaller payments (restructuring of an existing mortgage) or no payments at all until your financial condition has stabilized.
- Homeowners who do not qualify for any of the above alternatives to foreclosure can simply file for bankruptcy and delay foreclosure by having the court issue an “automatic stay” until the proceedings have ended. Additionally, there may be instances when filing a specific type of bankruptcy can reverse an impending foreclosure and help you save your home.
However, Florida bankruptcy and foreclosure laws are complex and constantly changing to accommodate new federal and state laws being implemented every few months. Trying to maneuver through the court system without the assistance of an attorney who is experienced in navigating Florida foreclosure laws is not only stressful but potentially devastating to your future financial security.
Let the attorneys at Mansfield Bronstein, PA take charge of your foreclosure problems and provide you with the professional advice and personal attention you and your family need and will welcome at this uncertain time in your lives.