The number of people dealing with foreclosure in Florida is increasing daily. That’s because of growing inflation and more complex mortgage structures than before. More reasons for people ending up in foreclosure include job losses, surprise expenses, medical needs, and many more. Whatever the reason, the foreclosure threat is overwhelming for anybody.
The feeling of getting kicked out of your home due to a lack of money is devastating. Stopping foreclosure can be a hectic and tricky process; that’s why one should always keep their facts clear and take control of the situation. If you want to know how to stop foreclosure in Florida, continue reading the article.
How Do You Stop a Foreclosure?
Foreclosure is like a babble; it’ll keep getting hard to fight it the longer you stay behind on your mortgage payments. You should always fight the foreclosure in Florida with a proactive approach. According to foreclosure law in Florida, relevant financial institutions must seek a judge’s permission before property foreclosure.
So, that gives you enough time to act accordingly. Acting sooner will increase your chances of avoiding foreclosure. But you might wonder, “What is the best way to prevent foreclosure?”. The best way to prevent foreclosure is via “Mortgage Workout.”
Mortgage Workout
The whole procedure for foreclosure in Florida is costly for both parties involved. That’s why banks and other lender parties are always interested in a mortgage workout. It means devising a plan to either restructure your mortgage payment structure or modify the mortgage terms. Here are some typical ways to avoid foreclosure via mortgage workouts.
1. Forming Repayment Plans
A repayment plan means adding your overdue amount (including fines, late payment fees, etc.) on top of your regular mortgage payments to restore the financial loss of the lender. The “repayment period” usually spans two to three months and may depend on the borrower’s financial capability.
Please note that repayment plans are devised to pay the overdue amount. There won’t be any permanent change in your mortgage structure. You will continue to pay your regular mortgage installment after the repayment period.
2. Forbearance Agreement
A forbearance agreement allows homeowners to temporarily pause or limit their mortgage payments by proving their financial struggle. The lender, a bank in most cases, will relieve you of your mortgage burden while you regain your financial strength. A forbearance plan is one of the best ways to stop foreclosure immediately.
An important thing to remember is that the forbearance agreement doesn’t extend your length of mortgage. So, you’ll pay the same amount with the same interest rates, insurance, lender fees, etc.
3. Loan Modification
If you’re a homeowner wondering, “How to stop foreclosure in Florida?” and struggling financially, loan modification is the perfect option. It means changing mortgage lengths, re-evaluating monthly mortgage payments, and changing interest rates to stop foreclosure in Florida.
Loan modification reduces the mortgage installment and increases the total period. So, stopping foreclosure with this method means you’ll be paying loan modification for longer.
Selling Your House Before Foreclosure
Foreclosure in Florida is usually marked by the lender selling your beloved home at an auction. So, an efficient way to stop foreclosure is by selling your home and clearing the dues. Selling your house is a win-win situation for everyone.
You get some extra cash in your pocket, clear your mortgage payments, your credit score at the bank is protected, and you can even stay in your home after closing. There are three options to sell a house with a mortgage. These include:
Pay-off mortgage: Where you pay off the mortgage as the sale proceeds.
Subject-to-mortgage: Where you sell a house subject to the mortgage, the new owner will pay off the remaining mortgage installments.
Short-sale: You sell the house for less than the amount owed to the lender.
Can Probate Stop Foreclosure?
Probate is the legal process of re-evaluating a property’s distribution among relevant authorities. Probate ensures that the property is divided as per the will of the alive or deceased owner. In a probate case, the court treats all assets by foreclosure law Florida.
Foreclosure is directly related to the property’s ownership. So, a probate case cannot stop foreclosure. The bank can conveniently foreclose a property in probate.
Filing for Bankruptcy
Filing for bankruptcy is an almost-black hat technique for stopping foreclosure. The court issues a temporary automatic stay at the start of your case and prevents the lender from collecting any debts or enforcing foreclosure. So, a bankruptcy case will act like a shield but has many downsides.
Bankruptcy will put you at risk of losing your assets, your credit score will be harmed, and you might be restricted from obtaining any future mortgages.
How 3-Step Home Buyer Helps You Fight Foreclosure?
3-Step Home Buyer is the most premium solution for fighting off any real estate challenges or issues. As mentioned earlier, selling your home is the best way to stop foreclosure. 3-Step Home Buyer will help you sell your home with a mortgage in three simple steps.
- Tell us about your home.
- Receive your offer.
- Close the deal.
With 3-Step Home Buyer, you can rest assured that you’ll get the best deal possible. Without worrying about complex legal and financial issues, 3-Step Home Buyer minimizes the risks and hassle for its customers.