What Is the Best Way to Prevent a Foreclosure?

Unfortunately, foreclosure is something that happens to people throughout the state of Florida throughout the year. If you are facing this situation, you may wonder, What is the best way to stop foreclosure?

If your home is on the verge of foreclosure, don’t panic — an attorney may be able to help you choose a strategy to prevent it.

What Is the Best Way to Prevent a Foreclosure?

You May Be Able to Protect Yourself and Your Home

A foreclosure happens when you’re unable to make your mortgage payments and your lender repossesses your home as a result. Unless you have the resources to catch up on your mortgage, it might seem like you have no hope of avoiding foreclosure.

Fortunately, there are several different strategies you may be able to use to avoid foreclosure. You may not be able to keep your home, but you might at least escape some of the other negative effects of foreclosure, including:

• Serious credit damage
• Owing a deficiency judgment
• Owing tax on any forgiven debt
• Emotional stress
• Trouble being approved for another mortgage.

An experienced real estate attorney may be able to help you determine whether you can take advantage of one of these common foreclosure prevention strategies.

Reaching Out to Your Lender

Generally, the more communicative you are with your lender, the better. If you lose your job, suffer a financial setback, or otherwise think there’s a possibility you may miss a payment, it’s worth reaching out.

Some lenders may allow you to skip a payment or two if they know you’ll be able to catch back up. There’s no guarantee that your lender will do this, but the worst they can do is say no.

Forbearance

Have you missed several mortgage payments to the bank? If so, it’s possible to contact your bank to request forbearance. Mortgage forbearance is a form of mortgage relief where the lender temporarily reduces your payments or allows you to skip them entirely. The missed payments are added back into your mortgage so you can pay back what you owe once you’re in a better financial situation.

Some homeowners may worry that their lenders will refuse to grant them forbearance because the process of doing so is a hassle. That may be true, but forbearance is much less of a hassle for your lender than foreclosure is.

Deed in Lieu

Another option to prevent foreclosure in Florida is to request a deed in lieu of foreclosure. If you don’t want to keep your home anymore and want to move on with minimal damage to your credit score, then you have the option to return your property to the bank and stop the foreclosure.

Unfortunately, this option is rarely as simple as it sounds. There’s a possibility that the lender will pursue you for a deficiency balance. This is any amount you still owe on the mortgage after the lender has sold the home. The lender will sometimes forgive your deficiency balance — but the forgiven amount is sometimes taxed as income.

The deed in lieu is a complex process. Usually, a bank will grant this only if you have a foreclosure defense attorney handling the situation.

Are you headed toward foreclosure? The Law Office of Carlos M. Amor, P.A. may be able to help. Call 954-453-7200 to get started with a free consultation.

Short Sale

Do you currently owe more than what your property is worth? If so, the bank may be willing to do a pre-foreclosure sale or a short sale. Put simply, you may be able to halt the foreclosure process if you sell your property. This process involves coordinating with both your lender and any potential buyers, and it’s important to have an attorney to guide you through the process and look out for your interests.

Modification of Loan

This is a common way that Florida homeowners work to stop foreclosures. With a loan modification, you will include the mortgage payment owed monthly, reduce your interest rates, and minimize the principal amount. While this is an effective option, it is difficult to secure a loan modification if you don’t have help from an experienced attorney.

Refinancing

If you are facing significant financial problems, you may not be able to refinance your mortgage. However, if you anticipate having trouble affording payments in the future, you may be able to refinance at a lower rate — which, in turn, would lower your monthly payments. This option may not be feasible if you have poor credit or are already behind on payments.

Why You Need an Attorney to Help With a Foreclosure in Florida

Foreclosure can be an extremely complicated process. If you are trying to prevent it or even stall it, there are options; however, because they are so complex, having attorney Carlos M. Amor is highly recommended.

These are some of the specific reasons to hire a real estate law firm for help in preventing or stalling foreclosure in Florida:

They Understand the Law

There are more than a few laws that govern foreclosures, contracts, mortgages, and the rights of borrowers. Having an experienced foreclosure defense attorney like Carlos M. Amor on your side provides you with information about the law and what options you have.

Foreclosure law is always changing, so you need an attorney who knows what these laws are and stays abreast of the updates and revisions that have been made.

Defenses for Foreclosure Are Complicated

The defense options for foreclosure aren’t simple. Many homeowners believe they have a viable defense for foreclosure, but they don’t have the knowledge or tools to prove their case. Attorney Carlos M. Amor may be able to prove that the lender did not follow the proper procedures when the lawsuit for foreclosure was filed or show other mistakes that may have occurred.

Hiring an Attorney Is the Best Way to Protect Against Foreclosure in Florida

The Law Office of Carlos M. Amor, P.A. Is Here for You

If you are dealing with the possibility of foreclosure in Miami, Fort Lauderdale, or West Palm Beach, hiring attorney Carlos M. Amor is the best option possible. With his real estate legal services, you can feel confident that you will have the best defense for the situation.

Facing the possibility of foreclosure? Don’t make the mistake of thinking there’s nothing you can do. Call The Law Office of Carlos M. Amor, P.A. at 954-453-7200 to request a free consultation today.