Heartbroken local homeowners in FL who are struggling with their finances may be forced to go through the devastating experience of foreclosure.
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the process to take ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few foreclosure prevention measures in Florida that you can take to keep your home from foreclosure.
Foreclosure prevention measures in Florida FL
While we understand that not all of these foreclosure prevention measures may be applicable to your specific situation, we are sharing them with you so that you have the power to make an informed and empowered decision, even in the face of uncertainty.
1. Pay off your mortgage / sell your property. Paying off your mortgage is the quickest and most straightforward way to put an end to the soul-crushing foreclosure process. Your bank simply desires to get their funds back and will be elated to let you hold onto your cherished home. Unfortunately, this may not always be possible, leading to the unfortunate and stressful situation of foreclosure that you may currently be facing.
2. Work out a deal with your bank. Don’t give up hope just yet! With grit and some negotiating savvy, you can work towards a solution with your bank to make your mortgage payments more manageable. By setting up a meeting with a mortgage or foreclosure expert, you can explore the possibility of restructuring your payments. Just imagine the sense of relief you’ll experience when your monthly payments are lowered to a more manageable sum. However, it’s crucial to keep your own best interests in mind and ensure that the agreement is truly advantageous for you in the long term, rather than just temporarily postponing your difficulties.
3. Do a short sale. A short sale is an option where you sell your property and use the profits from the sale to either partially pay off or fully pay down your outstanding mortgage with the bank. This way, you can avoid the damaging effects of foreclosure on your credit score and breathe a sigh of relief as the burden of debt is lifted from your shoulders.
4. Give your deed in lieu. A deed-in-lieu-of-foreclosure might just be your lifeline to escape the overwhelming stress of foreclosure. By transferring ownership of your home to the bank, you can dodge the heart-wrenching experience of having your home taken away from you. However, this solution only works if the value of your home is roughly equal to the outstanding balance on your mortgage. If not, the bank might pursue you for the remaining debt, causing even more distress and emotional turmoil.
5. File for bankruptcy. A bankruptcy can be a more drastic step than foreclosure as it can have far-reaching effects on all aspects of your life. However, once you file for bankruptcy, the agonizing foreclosure proceedings must come to a halt, offering you a temporary reprieve and serving as a means of foreclosure prevention.
If you’re feeling uncertain about which course of action to take, let me offer some guidance: If you are able to make payments and cherish the idea of remaining in your home, then a foreclosure workout arrangement (#2) is likely your best bet.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money.