When you fall behind on your mortgage payments on your Florida home, it can feel like you’re drowning in debt.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Florida and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Florida have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Florida ! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Bankruptcy should generally be considered as a last resort when burdened by overwhelming debt, as it provides an avenue to negotiate with multiple lenders simultaneously. However, it is important to note that bankruptcy does not exempt one from mortgage obligations. The approach of individual lenders may vary, and seeking professional assistance from qualified experts is highly recommended. Engaging the services of the best professionals within your financial means can provide valuable guidance throughout the complex process, ensuring that you navigate bankruptcy proceedings effectively and maximize the potential benefits available to you.
2. Reaffirm:
While bankruptcy can be a strategic move to address overwhelming debt, it is important to consider potential unforeseen consequences. Reaffirming a loan during bankruptcy entails an additional commitment to repay the debt, which may carry certain risks. In states where it is permitted, affirming the loan can result in additional liabilities if your property is subsequently auctioned. It is crucial to thoroughly understand the implications and consult with legal professionals to make informed decisions regarding loan reaffirmation and navigate the potential risks associated with the bankruptcy process.
3. Making Home Affordable (MFA):
If you have a mortgage that meets the qualifications, you may be eligible to participate in the Making Home Affordable (MHA) program. Loans backed by Fannie Mae or Freddie Mac are required to be considered for MHA, while other lenders can choose to participate in the program. MHA offers the potential to lower your payments, reduce interest rates, and even decrease the principal balance if your home’s value is less than what you owe. Additionally, if you are unemployed, you may be able to temporarily suspend or reduce your payments. It is important to note that MHA involves dealing with a substantial amount of paperwork and is not a form of free money – you will need to actively engage and fulfill requirements to benefit from the program. MFA is a government initiative that requires effort and diligence on your part to access its potential benefits.
4. Negotiate with your bank:
Obtaining assistance from lenders often requires diligent effort, but it is possible to negotiate for a reduced interest rate or temporary payment reduction. While lenders may encourage refinancing, it can be challenging to qualify if you have fallen behind on payments. Negotiating with a bank demands perseverance and the ability to navigate through bureaucratic processes. It is vital to maintain a respectful and polite attitude throughout the communication. Reach out to various representatives, seeking help without sounding desperate. Clearly explain your situation, provide supporting documents, and assure the bank of your long-term commitment to residing in your home. Working diligently, staying patient, and displaying professionalism can improve your chances of achieving a favorable resolution.
When facing a temporary financial setback but desiring to remain in your home, many banks can display leniency. They may be willing to add a few months’ worth of missed payments back onto the principal balance of your loan. It is important to emphasize to the bank that their assistance now will ultimately result in greater financial returns for them in the long term. Remind them that if they were to resort to selling your house at a foreclosure auction, it would lead to a substantial loss for them. Although this may seem obvious, it is worth noting that bankers sometimes overlook this perspective when declining assistance to those in need. By highlighting the long-term financial implications and urging their support, you can remind them of the mutually beneficial outcome of providing the necessary help in your situation.
5. Borrow money from a private investor:
If you’re behind on your payments and need to sell fast, we can help.
In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Florida to find solutions to foreclosure problems.
We’ll let you know how we can help.