Step by Step Guide to Avoid Foreclosure in Florida

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(via: https://pixabay.com/photos/key-home-house-estate-business-2323278/)
(via: https://pixabay.com/photos/key-home-house-estate-business-2323278/)

 

Any way you look at it, mortgages are expensive. While many Florida residents can afford to pay their mortgages without a problem, this unfortunately isn’t always the case. Some people may struggle to make their payments, which would eventually lead to a foreclosure of their home in Florida.

This is when the lender will legally take possession of a property if the lender can no longer pay their mortgage. In most cases, the home will be sold in order to recoup all or some of the money that was lent out in the mortgage to the borrower.

As you could imagine, dealing with a foreclosure can be incredibly difficult, stressful and expensive. However, there are some ways you could potentially avoid having to deal with one, and this article is going to take a closer look at a few of them.

Negotiate With the Lender

A foreclosure is a process that is between you, the borrower, and a lender. If you want to avoid having to deal with the process altogether, consider negotiating with the lender. Just as much as you don’t want to deal with a foreclosure, your lender likely doesn’t want to either.

As a result, it is a good idea to negotiate with the lender and try to find a solution that works for both sides. There are a few different ways you can do this. You can come up with a different repayment plan, complete a mortgage reinstatement, refinance the loan or modify the loan in some other way.

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If you want to learn more about each of these options, be sure to read the entire article here for more information. While these efforts might not always be fruitful, it is worth a try to come to a more advantageous solution.

Consider Renting or Selling the Property

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While negotiating with lenders is a common choice for those facing down the possibility of foreclosure, it isn’t the only option you have. A popular choice for many is to rent out their home. While this might not be easy, if you live in a desirable area, there will certainly be people interested in living there. Renting out the home, or a room/area of the home, could make you enough in rent to cover your mortgage payment.

In addition to renting out the property, you could also sell the home. In order to sell quickly and avoid the foreclosure, you may need to take slightly less for the home in order to entice buyers to act quickly. You will either use the money you made by selling the home to pay off the money borrowed, or have the next owner make mortgage payments on your behalf.

Each of these options can take a bit of work, and often a good amount of time, but can be well worth it in order to avoid a foreclosure.

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Bankruptcy As a Last Resort

If you see no way out of your situation and a foreclosure is looming, a bankruptcy can be a last resort that could help you out. While a bankruptcy won’t stop your foreclosure altogether, it will delay everything and give you more time. The reason for this is because of an automatic stay.

This prevents any creditors or lenders from attempting to collect any debts during the bankruptcy process. Of course, bankruptcy is only somewhere you should go when you have nowhere else to turn. It can wreak havoc on your credit score and report, and you risk losing many of your assets.

In conclusion, we hope that this guide has been able to help you learn how to avoid foreclosure in Florida.