Stopping
Foreclosure:
You have several options to stop and prevent
foreclosure. Some cost money and some are free.
Option 1 - Call Florida Foreclosure
Assistance!!!
We specialize in working with Lending
Institutions Loss Mitigation department. This is a NO
Cost service to you. We will purchase your house at what
you owe and settle all debt so you are not given a "deficiency
Judgment" by you Lending Institution. For us to
help you, you must call 954-478-6534 or fill
out our online form.
Option 2 - Reinstatement
Reinstatement occurs when the loan is
brought current by paying the total amount past due. You
have an absolute right to fully reinstate your loan within 90
days of being served with a Complaint to Foreclose Mortgage. However,
lenders will often allow reinstatement as long as it occurs
before a foreclosure sale.
Option 3 - Repayment Plan
A repayment plan is designed to reinstate
the loan. It is an agreement to bring the mortgage current
over time. The terms are generally a payment of ½ of the
arrearage as a down payment and 1 ½ payments a month until the
account is brought current. A lender will normally not
accept a repayment plan after a bankruptcy.
This is definitely the cheapest way, but can be frustrating
if your lender doesn't have a helpful "loss mitigation department"
or a "hardship" program. It can be viewed the same as if you
were going to fix your own car. First you have to learn about
the car, then fix the car. As with car repair, most people would
rather hire a specialist to handle their financial affairs.
Option 4 - Redemption
Redemption is the act of paying off the
delinquent loan in full. You have the right to payoff
the loan during the redemption period which, for residential
property, expires 7 months from the date of service of the foreclosure
complaint or 3 months from the date the judgment of foreclosure
is entered, whichever is later. The redemption
period must expire prior to a foreclosure sale. Redemption
usually occurs either through a sale or a refinance of the property.
Option 5 - Sell the Property
You can sell your home anytime before
the foreclosure is finished. A short payoff occurs when
you owe more on the loan than the house is worth. A lender
will usually not accept a short-payoff on a refinance.
This is a great way if you feel you can get what you owe out
of your house. Remember to include the standard 6% realtor fees
when calculating your take home. You can negotiate the buyer
to pay some of the realtor fees, but it is rare.
Option 6 - Refinance
You may possibly refinance the loan if
you have enough equity in your home. However, you will pay a
high interest rate plus high loan charges.
Option 7 - Loan Modification
A loan modification refers to changing
the terms of the delinquent mortgage. These
changes may include extending the term of the mortgage, adding
the delinquency to the mortgage amount or a reduction in the
interest rate.
Probably the most popular and common with people who can't pay
all the past due mortgage payments at once. This service negotiates
with the lender to move those payments to the back of the loan
(pending you have the proven income to make the current payments).
It is essentially like getting a grace period.
Option 8 - File for Bankruptcy Protection
Filing bankruptcy will stop the foreclosure
case. A Chapter 13 bankruptcy is a type of forced repayment
plan. A bankruptcy can be filed anytime before a foreclosure
sale. For most people, this should be the last option,
not the first!
Option 9 - Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is a voluntary
transfer of the property to the lender in full satisfaction
of the amount owed. By accepting the deed, the lender
releases you from personal liability on the loan. Lenders
will not accept a deed in lieu of foreclosure if there
are other liens on the property. In other words, this
is where you realize that you can't pay for the house and you
voluntarily give the house back to the lender. This still is
subject to a deficiency judgment yet counts as a "less serious"
foreclosure on your credit.
Option 10 - Seek a Legal Delay of Forbearance
When a lender forecloses on a property
it is expensive for them. They would rather work out some sort
of arrangement than proceed with the foreclosure. Talk to your
lender and see if they are willing to work out a plan that outlines
a way to get current on your mortgage. This agreement will vary
depending on the situation and the lender. Some things they
may be able to help with are a temporary reduction or suspension
of your payments. If you have a FHA VA or other government loans
you may qualify for even more options.
Option 11 - Do Nothing & Lose Your House at Auction
This is a result of NOT calling Florida
Foreclosure Assistance to help resolve your pending foreclosure.
As they say..."denial ain't just a river in Egypt". |