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:
Declaring bankruptcy is widely considered a final recourse for those embroiled in overwhelming debt. This legal process offers a useful mechanism for dealing with multiple creditors simultaneously, albeit requiring considerable diligence to initiate. It is critical to acknowledge that filing for bankruptcy does not exempt one from mortgage payments, nor does it ensure consistent treatment from individual lenders. Consequently, it is highly recommended to seek guidance from a trustworthy and seasoned professional who can offer financial expertise within reasonable monetary limits.
2. Reaffirm:
Agreeing to reaffirm a loan may appear advantageous at first glance, but it is imperative to consider the latent repercussions. Essentially, consenting to reaffirm the loan entails an additional commitment to settle the debt. In some jurisdictions where it is permitted, a reaffirmation can result in supplementary legal obligations in the event that your property is subjected to auction.
3. Making Home Affordable (MFA):
Provided you satisfy the criteria, you may be qualified to participate in the Making Home Affordable (MHA) initiative. Lenders who are supported by Fannie Mae or Freddie Mac are mandated to consider MHA, while other lenders may elect to join the program known as the Mortgage Forgiveness Act (MFA).
Under MFA, you have the potential to undergo a reduction in your payments and/or interest rates, and in some cases, a decrease in your principal balance if the value of your abode is inferior to your mortgage balance. If you happen to be without employment, you could be eligible for a temporary moratorium or diminution of your payments.
It is crucial to bear in mind that MFA is a government program that necessitates a considerable amount of documentation. It is not a grant of money, and you will need to exert some effort to reap its advantages.
4. Negotiate with your bank:
It is plausible that multiple lenders can offer diverse forms of aid. With assiduous endeavor, it may be conceivable to attain a decrease in the interest rate or a provisional reduction in payment. Nevertheless, the lenders tend to encourage loan refinancing, and if you have defaulted on your payments, the opportunity to receive a reduced interest rate may be unattainable.
Interacting with a bank necessitates significant exertion, encompassing a multitude of calls and immense composure to navigate through the bureaucratic system. It is imperative to remain courteous and solicit assistance from every contact while abstaining from sounding needy. Providing corroborating documentation, expounding on your circumstances, and emphasizing your enduring commitment to residing in your abode can be beneficial.
If you require an ephemeral solution and aspire to maintain your domicile, most banks are agreeable to comply. They may append a few months of payments to your primary loan balance. Reiterate to them that accommodating you will ultimately result in more considerable profits for them. If they resort to foreclosure and vend your dwelling in an auction, they will suffer a significant loss. Although this seems evident, bankers may overlook this when declining a request for aid 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.