Orlando Foreclosure Alternative Attorney
If you are behind on mortgage payments, you are likely worried that your lender will foreclose on your home. During this difficult time, it is important not to panic. There are many alternatives to foreclosure that can protect your credit score, and may even help you keep your home. Below, our Orlando foreclosure alternative attorney explains what these are, and how we can help.
Loan Modification
If you and your lender can agree to a loan modification, you can permanently change the terms of your mortgage loan. Through a loan modification, you can eliminate late fees, lowering your monthly payment, or you can reduce your interest rate, extend the time to repay the defaulted payments, and even lower the principal balance on the loan. Loan modifications are long-term solutions to mortgage issues.
However, to obtain a loan modification you must ask your lender for one, and they must approve. Even if your lender approves the modification, you will have to go through a complex process of negotiating with your lender and reaching an agreement. This is never easy. An Orlando foreclosure alternative attorney can help you obtain the most favorable terms.
Short Sales
During a short sale, your lender agrees to sell the home for an amount lower than what you still owe on the mortgage. Unlike a loan modification, a short sale will not allow you to keep your home. For this reason, short sales are most appropriate for homeowners who have little equity in the home and want to walk away without going through the foreclosure process. As with other alternatives to foreclosure, a short sale can minimize the damage done to your credit score.
Deed in Lieu of Foreclosure
With a deed in lieu of foreclosure, you volunteer to transfer the title to your property to the lender. Like a short sale, this can help you walk away from the property without having a foreclosure on your credit report. Lenders are often open to deeds in lieu of foreclosure because they help them avoid a lengthy and costly foreclosure process.
Bankruptcy
A Chapter 13 bankruptcy can help you avoid foreclosure while keeping your home. During this type of bankruptcy, you create a repayment plan that can include many types of debt, including your past due mortgage payments. Chapter 13 repayment plans extend between three and five years, which can provide you with more time to repay all of your debt. The court will also issue an automatic stay immediately after you file bankruptcy. This prohibits lenders and creditors from pursuing the debt you are trying to address in bankruptcy. The automatic stay applies to mortgage lenders, as well, preventing them from starting or continuing the foreclosure process.
Our Foreclosure Alternative Attorney in Orlando Can Explain Your Options
If you have gotten behind on mortgage payments, it is important to understand your legal options. At Florida Law Advisers, P.A., our Orlando foreclosure alternative attorney can explain what these are and help you determine which one is right for you. Call us now at 1 (800) 990-7763 or contact us online to schedule a consultation with our experienced attorney.