If you are struggling to keep up with your mortgage it is important to know that you have options and a foreclosure does not have to be one of them. Our Florida foreclosure defense attorneys have helped many homeowners avoid foreclosure by taking advantage of alternatives to foreclosure. At Florida Law Advisers, P.A., we explain all of the foreclosure alternatives that our clients have so that they can choose the path that is best for their family. Our Tampa foreclosure defense lawyers will answer all of your questions and discuss the potential benefits and consequences that may arise with each option.
Whether you decide to pursue: a deed in lieu of foreclosure, short sale, loan modification, bankruptcy protection, or legally challenge the foreclosure, Florida Law Advisers, P.A., can help. Our Tampa foreclosure defense attorneys can develop a comprehensive legal strategy based on your specific situation to help solve your current Florida mortgage crisis and determine if any of the foreclosure alternatives are a fit for you.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is when a homeowner voluntarily gives title of the property to the mortgage company. A deed in lieu of foreclosure can help homeowners who are interested in walking away from the property avoid the consequences of a foreclosure. Lender’s will often accept a deed in lieu of foreclosure because it can save them money on legal fees and bring closure to the matter more efficiently than filing for foreclosure.
In a short sale, the homeowner and mortgage company agree to sell the home for less than the amount owed on the mortgage. Short sales may be a good option for homeowners who have no equity in the property and want to abandon the home without going through foreclosure. Short sales are beneficial to homeowners because they are able to walk away from the property without a lengthy legal battle and can minimize the damage done to their credit score.
A loan modification creates a permanent change to one or more of the terms of your mortgage agreement. A loan modification can lower your monthly payment by eliminating late fees, reducing your interest rate, extending the time to repay, and lowering your principal balance. Loan modifications are intended to provide homeowners with a long-term solution to their mortgage problem.
However, obtaining a loan modification is not always a straightforward and easy process. If you are seeking a loan modification, you should not go through the process alone. Competent legal representation can increase the chances of the lender approving your request and make the terms of the modification more favorable to you.
Chapter 13 is a reorganization bankruptcy; it gives you the opportunity to reorganize your debt into a more manageable payment. In addition, it may provide up to 5 years to catch up on missed mortgage payments without being charged additional interest from your lender.
Chapter 13 may also allow you to remove a second mortgage from your home. You may be able to remove a second mortgage in bankruptcy if you have two mortgages on your house and your primary mortgage exceeds the current market value of the property. Once the mortgage is removed from the property, it will be treated like any other unsecured debt in the bankruptcy.
When you file for bankruptcy, the court will automatically enact a stay. The stay requires all collection actions against you to stop immediately. Creditors and collection agencies will not be able to contact you, garnish your wages, or repossess your property while the automatic stay is in effect. The stay on foreclosure can give you time to organize your finances and mount a legal challenge to the foreclosure.
Fight the Foreclosure
As a homeowner you have many legal rights that you can and should assert against your mortgage company. With skilled and aggressive legal representation you may be able to stop the foreclosure and even successfully countersue your mortgage company. Under Florida foreclosure law, all home foreclosure actions must be administered by a court and follow all of the necessary court procedures. The lender will have to go to court to foreclose on your home, and that gives your attorney an opportunity to prepare, raise legal defenses on your behalf, and countersue your mortgage company. For instance, if there have been violations in lending laws and practices you may be able to prevent the foreclosure and successfully sue your lender for their lending violations.
Consult a Tampa Foreclosure Defense Law Firm Today
At Florida Law Advisers, P.A., our Tampa foreclosure defense attorneys have years of experience helping people just like you to solve their mortgage problems. We understand that these are very difficult times for you, and we are here to help. We have many foreclosure alternatives available that can help you successfully manage your Florida home mortgage and regain your financial health.
The right course of action will depend on the unique circumstances of your case. Contact us to today to schedule a free, confidential consultation with a Tampa foreclosure defense lawyer to see which options may be available to you. During the consultation, an experienced Tampa foreclosure defense attorney will carefully review the facts of your case and help you choose a course of action that is best for your individual needs.
Frequently Asked Questions
Yes, you can apply for a loan modification even if the bank already filed for foreclosure. However, a loan modification requires the bank’s approval. On the other hand, if you file a Chapter 13 case you can force the bank to give you 5 years to pay the past due amount.
Yes, if you want to keep the home a loan modification or Chapter 13 bankruptcy may help. A Chapter 13 case can stop the foreclosure and force the bank to modify your loan. On the other hand, if you do want to keep the home a short sale or deed in lieu may be appropriate.
Yes, in some respects a short sale may be less harmful than having a foreclosure on your credit report. Each lender will have their own underwriting guidelines and view short sales / foreclosure differently. Therefore, you should inquire about your bank’s specific rules regarding short sale.
Yes, when a Chapter 7 or Chapter 13 case is filed an automatic stay is instantly put into effect. The automatic stay is a federal law which stops all forms of collection activity, including foreclosure auctions already scheduled to occur. As long as the case is filed anytime prior to the auction it will be cancelled.