Finance

11 Tips For Avoiding Foreclosure In South Florida

The process of buying a house can be scary. Imagine you owning a home for three years and all payments have been paid on time. Your job is cut and you are no longer able to make a living. You could be one of millions of Americans at risk with a subprime adjustable mortgage (ARM). This means that your interest rates will increase by a greater percentage in the coming year. You may also be a prime borrower and have chosen a nontraditional mortgage. Although you may be current on your mortgage, you might be concerned about company layoffs or rising expenses.

Florida’s chances of avoiding foreclosure are increasing. Many “We Buy Houses Florida”, companies that specialize in helping homeowners avoid foreclosure, are available. There are also new programs that offer refinancing and governmental solutions. Lenders are also available who will freeze the interest rates based on the mortgage.

1.) 1.) How can I avoid foreclosure in Florida? Do your research.
Many homeowners find themselves in unaffordable loans because they didn’t understand the terms or were conned by loan sharks. “A large percentage of the people we meet are people who have received loans that they shouldn’t,” says Phyllis SaloweKaye from Citizen Action, a large counseling agency for mortgage crisis. Do you remember being uninformed about the mortgage process? You can avoid this mistake from happening again. The U.S. Department of Housing and Urban Development has compiled a list of helpful resources for Florida homeowners to avoid foreclosure. Other websites offer free assistance for homeowners in distress via their attorney general, bank department or housing finance agency websites.

2.) Contact Your Lender Immediately
You will lose your leveraging power if you have a bad credit history. There are also programs that can help you avoid foreclosure in Florida if your credit is not bad. Project Lifeline works with six major lenders: Citigroup Financial, Citigroup Financial, Countrywide Financial and JP Morgan Chase. They have also agreed to suspend foreclosure for qualified borrowers who want to stay in Florida.

3.) 3.)
Subprime Lenders offer a reset for ARM mortgages via the mail up to three months before the interest rates are scheduled to reset.

4.) Be Patient
Salowe-Kaye says, “Too many people try to solve the problem with quick takeaway advice.” A “We Buy Houses Florida”, which offers immediate relief from a mortgage, is the fastest. Click this link for more information. William Sanchez, Tampa Bay Community Development Corporation, Clearwater, Florida, has some advice for those who don’t mind waiting for an eternity to get a solution. According to Sanchez, “This cannot be resolved by one phone call.” Because of the high demand for helplines, it can take a long time to reach someone servicing your loan. It’s also difficult to predict how many homeowners will stay in their homes. However, lenders are generally more willing to help you make plans. You should be prepared to listen to experts and explore the options offered by your lender.

5.) 5.) Contact a Low-Cost or Free Housing Counselor
HUD-certified counselors can help homeowners avoid foreclosure in Florida by visiting the U.S. Department Of Housing and Urban Development.

6.) Foreclosure Process: Get Expert Advice
Stop at a housing-counselor. The next number to call is a foreclosure attorney. Don’t listen to lawyers claiming “quick fixes” via television, the internet or phone calls. A “We Buy Houses Florida” company can quickly sell your home. You can trust them to provide a free consultation and guide you through the foreclosure process. Legal Services Corp is the best place to find a trusted lawyer.

If you have a low income, they can connect you with an affiliate agency. For further assistance, call the Florida State Bar Association.

7.) You May Be Eligible For Special Assistance.
For homeowners with an adjustable-rate mortgage and good credit ratings, the federal FHASecure program might be able offer a fixed rate refinance option. Foreclosure protection may be available to former and current members of the military, as well as those who have served in the past 90-days.

8.) 8.) Bankruptcy is Not an Easy Way Out
According to Florida’s current laws, bankruptcy can stop or slow down foreclosure. Before proceeding, seek legal advice from a trusted source. Judges in bankruptcy are not allowed to restructure mortgage debt that is attached to a primary residence. Chapter 13 bankruptcy can be filed by borrowers to temporarily suspend a foreclosure proceeding. Josh Zinner, from the Neighborhood Economic Development Advocacy Program in New York, says that Chapter 13 bankruptcy is necessary to maintain the Chapter 13 plan. This means that a borrower with a high-cost mortgage must be able to make monthly payments and pay off a portion of arrears. You should also consider the fact that borrowers who have declared bankruptcy will not be eligible for assistance programs such as Project Lifeline.

9.) 9.)
Mindy Wright, a Elyria housing counselor, said that many people make the mistake of paying their credit card bills before they pay their monthly mortgage payments. Credit card companies often call people and use threats to get them to pay. Banks communicate via mail only and take time to get back to customers. The notice of default is sent to the borrower by mail. It is already too late. The borrower now owes interest, late fees and past due payments. Lenders will typically not contact borrowers until the 60-90 days have passed. Credit card companies will continue to harass you until your late payment is paid. Wright recommends homeowners not to pay the mortgage payment and put off credit card companies. Wright says that a late payment on a credit card bill can ruin your credit score. However, a foreclosure can have an even more detrimental impact on your credit score – plus you won’t be able to afford a home.

10.) Fasten Your Seatbelt.
Eliminate unnecessary luxuries, such as Netflix and cable. You will have more bargaining power when you sit down to negotiate. Your favor will be if you are willing to bring money and cash in assets like jewelry or a vehicle. “Servicers are looking for you to make sacrifices.” Michael van Zalinger is the director of home ownership services at Neighborhood Housing Services of Chicago. Make sure you have your pay stubs, tax returns, and benefits statements ready to show the bank when you talk to them.

11.) 11.)
Refinance to a long-term mortgage is the best option. This will spread out late payments over time, and raise the interest rate. This option is not available to homeowners in Florida with average credit. It is possible that you will not be able pay the fees. There are two options: a loan modification or a repayment program.

Selling your Florida house to “We Buy Houses Florida”, is the first way to get paid.

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