Are you facing foreclosure on your Florida home? Are you unsure of how to save your home? Don’t panic. You have options, and we have created a list of 5 tips that can help you stay in your home and avoid foreclosure.
When Does Foreclosure Happen?
When you are behind on mortgage payments, or if you violate the terms of your mortgage loan agreement, you could be facing foreclosure.
Foreclosure is when the mortgage company intends to repossess and sell your house, meaning that you must vacate the property. In some cases, when your home has depreciated in value from the sale price, the lender may ask for you to pay the difference.
If you are facing foreclosure, this can be a stressful time, especially if your finances are suffering. So, if you find yourself near foreclosure, follow our 5 tips that may help you keep your home.
- Communicate Openly With Your Lender
If you are behind on your mortgage payments, the worst thing you can do is ignore it. As the letters pile up, your problem gets bigger and bigger. However, you should not let your fear take over!
The best thing you can do to make positive steps towards a solution is to contact your lender right away and discuss your situation and potential options that could get your mortgage payments back on track.
Believe it or not, your mortgage loan company does not want to go into foreclosure, as it is not in their best interest. They will be hoping to get your loan repayments back on track and handle this the smoothest way possible. So, open your mail right away (though you may not want to) and pick up the phone to contact your lender. This will be your first step in the right direction.
- Organize Your Finances
The fastest way to resolve the threat of foreclosure is to ensure that you can resume your mortgage repayments. So you need to take a look at your monthly ingoings and outgoings. Saving money this way can easily turn your financial troubles around.
Keep an eye out for top priority essential payments you make each month, and try to cut out everything else. Cancel any unnecessary memberships, identify frivolous purchases you made last month. Sorting through your finances will get you on the right track, enabling you to resume paying your loan off.
- Sell Assets
If you find yourself facing foreclosure, one of the easiest ways out is to identify any assets you have that may be worth selling: holiday homes, timeshares, boats, cars, expensive jewelry. If you have high-value items in your possession, now would be a good time to sell them. This money could help you pay what you owe and remain in your home.
- Foreclosure Prevention Schemes
If you cannot seem to get your finances back on track or come up with the money to pay what you owe, then it’s time to look into some options that will help you avoid foreclosure:
- Repayment plans – a repayment plan allows you to resume paying your mortgage while repaying what you owe over time.
- Refinancing – the lender pays off your old mortgage with a new one, which may have a more extended repayment period, lessening your monthly repayments.
- Forbearance – this is an agreement with the lender that allows you to either temporarily cease your repayments or lower them.
- Know Your Rights
It is wise when facing foreclosure to take a look at the documentation and agreements from when you bought your house, giving you an understanding of your rights and what the lender can and cannot do.
It is also wise to enlist the help of a housing counselor. Their advice is free and can help you avoid foreclosure recovery scams and prevent you from making any decisions that could worsen your situation.
If you are unable to make your mortgage payments or are facing foreclosure, do not stick your head in the sand. There are many options available to you. It is not the end of the world, and with the right help, you can avoid foreclosure and get your finances back on track to keep your home.