Jacksonville, Florida Foreclosure Defense Attorney
AVOIDING FORECLOSURE - WHAT ARE YOUR OPTIONS?
Florida and the nation are in the midst of a foreclosure crisis. If you are facing foreclosure in North East Florida or the threat of a Foreclosure is imminent; you should explore the variety of legal options available to you, including:
- New Legislation Proposed and Enacted by Congress
- Deed in Lieu of Foreclosure
- Loan Modification
- Repayment Plan / Forbearance Agreement
- Short Sale
- Bankruptcy
Many of these options require negotiation with your lender. Let an experienced Jacksonville foreclosure attorney negotiate on your behalf. Given the situation in the home mortgage and foreclosure market, it is clear that the banks must be more flexible working out solutions for delinquent borrowers.
Which path you choose to pursue is important because each strategy will have a different effect on your FICO credit score and your rights in the property.
Deed in Lieu of Foreclosure: Most lenders have criteria in place that allow borrowers to walk away from their homes without going through the foreclosure process. The lender will typically require that you attempt to sell the home first.
You can contact the loss mitigation department of your lender and find the criteria. The deed in lieu of foreclosure is a viable option for those who are "upside down" on their homes (they owe more than the home's actual value), as it has a lesser effect on your credit score than some of the other alternatives.
Loan Modification: Because banks don't want to own homes, and they take huge losses on the properties they acquire through foreclosure, you would think that they would prefer to negotiate the terms of your loan or work-out an alternative payment plan. Unfortunately, that almost never happens. Given the current foreclosure crisis, however, their policies are likely to change.
Repayment Plan / Forbearance Agreement: Your lender might agree to a repayment plan in which you make-up the missed payment over the course of time, or agree not to foreclose if you make certain commitments.
Short Sale: If you want to sell your house for less than you owe on it, or otherwise have access to funds that would enable you to buy your lender's note (if you own another home with equity, for example), you may be able to negotiate a short sale - a settlement with the bank in which you pay them off for less than the amount owed.
The difference between the price paid and the amount owed may be taxable, so make sure to consult a professional before signing a short sale agreement.
Bankruptcy: Bankruptcy can be a powerful tool to stop foreclosure proceedings and possibly save your home, but it also has serious implication on your credit and your future ability to purchase a home. Anyone considering bankruptcy should explore their other options before filing.
Faced with foreclosure, many will find that filing bankruptcy is a viable option. There are several advantages that bankruptcy gives the homeowner in foreclosure:
- Filing Automatically Stops Foreclosure Actions
- Bankruptcy Laws May Help You Save Your Home Permanently
- Filing Gives You Time to Sell the Home Yourself or Make Other Arrangements