Avoid Foreclosure

Steps To Avoid Foreclosure in Florida

1. IGNORING LETTERS FROM YOUR LENDER
One of the best suggestions anyone could give is to not ignore letters from your lender.  If you are having problems making your payments, call or write to your lender’s Loss Mitigation Department to ask for assistance.  Be prepared to provide them with financial information, such as your monthly income and expenses. Explain your situation in detail.

2. DO NOT ABANDON YOUR HOME
Abandoning your home may void any help you will receive.

3. CONTACT A LOCAL HOUSING COUNSELING AGENCY
These agencies have information on services and programs offered by Government agencies as well as private and community organizations that could help your situation. The housing agency may also offer credit counseling and other services, most often these are provided free of charge.

What are my options?

Deed-in-lieu of Foreclosure
If you would just like to move on, you may be able to voluntarily turn over the keys to your Florida home or “give back”  your property in what’s called a Deed-in-lieu of Foreclosure.
This is not going to save your home but it is not as damaging to your credit history as a foreclosure.
You can qualify for a Florida Deed-in-lieu from your lender if:
1. You are in default and don’t qualify for any of the other options;
2. Your attempts at selling the house before foreclosure were unsuccessful; and
3. You don’t have another FHA mortgage in default.

Short Sale
This will allow you to avoid foreclosure by selling your property for an amount less than the amount that is owed to your lender.
To qualify:
1. The loan usually needs to be delinquent but it is not a requirement
2. Florida Short Sales may be lengthy so plan on at least a two to four month process at a minimum
3. You will need lender approval of all final figures.

The BPO Realty Team works directly with an attorney-based title company to handle all of your short sale negotiations and processing.  There is no out-of-pocket cost to the seller.  Contact us today for a free market analysis of your home.

Loan Modification
Your lender may have a program to refinance your existing debt or to extend the term of your mortgage loan. This would help by reducing your monthly payments to a more affordable level.