When you fall behind on your mortgage payments on your Florida home, it can feel like you’re drowning in debt.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Florida and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Florida have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Florida! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Bankruptcy is typically considered as a final option in debt management. In cases where the burden of debt is overwhelming, it can serve as a useful means of negotiating with multiple lenders simultaneously. It is important to note, however, that declaring bankruptcy requires significant effort and will not aid in the avoidance of mortgage payments. Moreover, the treatment of individual circumstances by different lenders can vary greatly. As such, seeking the assistance of a reputable and experienced professional is highly recommended, within the limits of one’s financial means.
2. Reaffirm:
This could potentially be a favorable move, however, it may entail unanticipated repercussions. Essentially, agreeing to reaffirm the loan constitutes an added obligation to fulfill payment. In certain states where it is permitted, an affirmation can result in supplementary liabilities in the event that your property is put up for auction.
3. Making Home Affordable (MFA):
If you meet the requirements, you may be eligible to take part in the Making Home Affordable (MHA) initiative. Loans that are supported by Fannie Mae or Freddie Mac are obligated to be considered for MHA, while other lenders may choose to participate in the program known as the Mortgage Forgiveness Act (MFA).
Through MFA, you may experience a decrease in your payments and/or interest rates, and in some cases, a reduction in your principal balance if the value of your home is lower than your mortgage balance. If you are currently jobless, you may qualify for temporary suspension or reduction of your payments.
Keep in mind that MFA is a government program that requires a substantial amount of paperwork. It is not free money and you will have to put in some effort to receive its benefits.
4. Negotiate with your bank:
Numerous lenders routinely provide various forms of assistance, and with diligent effort, it may be possible to secure a reduction in your interest rate or a temporary payment reduction. However, lenders typically encourage loan refinancing, and if you’ve fallen behind on payments, you may no longer qualify for a reduced interest rate.
Negotiating with a bank requires significant effort, involving numerous calls and immense patience to navigate the bureaucratic system. It’s critical to remain polite and seek assistance from all contacts while avoiding sounding desperate. Providing supporting documents, explaining your circumstances, and emphasizing your long-term commitment to living in your home can help.
If you require a temporary solution and wish to remain in your home, most banks are willing to be accommodating. They may add a few months of payments to your primary loan balance. Remind them that helping you will ultimately result in more significant profits for them. If they foreclose and sell your house at an auction, they’ll experience a substantial loss. Although this seems obvious, bankers may forget this when rejecting a request for assistance from someone in need.
5. Borrow money from a private investor:
If you’re behind on your payments and need to sell fast, we can help.
In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Florida to find solutions to foreclosure problems.
We’ll let you know how we can help.