When you fall behind on your home mortgage payments, you’re at risk of the bank taking foreclosure action against you. Unfortunately, this means your lender could take legal steps to repossess your house, which leaves you and your family displaced.
In situations where your property isn’t worth what you owe, you might also face a deficiency judgment. This would mean you would owe the difference between your mortgage amount and the value of your home. The long-term implications of either of these situations could make it almost impossible for you to qualify for credit-based accounts or future home loans.
So, what options do you have to avoid foreclosure?
Address Your Payment Issues
One of the worst things you can do is ignore the notices sent by your lender. These letters not only tell you how far behind you’ve become but also provide alternatives to get back on track and avoid foreclosure.
Don’t Wait Until You’re Struggling to Call Your Lender
Home loan providers lose money when foreclosing on a property. If you’ve lost your job recently or have unexpected financial problems pop up, speak with your lender before you are underwater. Many times, they have options to help you not fall behind.
Know Your Rights as a Borrower
Don’t make uninformed decisions about your mortgage payments. Your loan paperwork has essential information about your rights if you can’t afford your monthly obligation. It would be best to speak with a seasoned foreclosure attorney about your rights under Florida law.
Don’t Trust Foreclosure Prevention Agencies
Believe it or not, you can get help preventing foreclosure on your South Florida home for free. Businesses that make money off struggling homeowners take expensive fees for their negotiation services that you can get at no charge from a HUD-approved housing counselor. This is money you could be using toward back payments.
Speak with a HUD-approved Housing Counselor
As mentioned before, you can get housing counseling at low cost or even for free through the U.S. Department of Housing and Urban Development (HUD). Their services can ensure you understand your rights, what financial assistance may be available for your situation, and possibly represent you when negotiating with your mortgage lender. Find a HUD-approved housing counselor by calling (800) 569-4287.
Revisit Your Spending Habits
One way to prevent going into foreclosure is to free up money you don’t need to spend. With all of the streaming and shopping service memberships out there, you could easily save a significant amount of cash each month, slimming down to just one or two options. Also, re-prioritize what you spend on. For instance, after making your house payment, what should be next most important? Of course, Healthcare is a top priority because if you are sick, you can’t work. If you’re already behind on your mortgage, you should also consider what unsecured debts you can delay payments on until your house loan gets caught up.
Liquidate Your Assets
Another way to catch up on your late mortgage payments is to liquidate some of your assets. Not only will this help put a dent in what you owe, but it shows your commitment to keeping your home to the lender.
Consider if you need that second vehicle or motorcycle in your garage. In addition, jewelry, certain types of life insurance policies, and other valuable assets may need to be sold to save your house.
Don’t Trust Foreclosure Recovery Scams
One of the most tragic events, when faced with foreclosure, is being preyed upon by scammers. If someone contacts you about immediately stopping the lender from taking your home, and they want you to sign off on a document giving them the authority to act on your behalf, don’t do it. All too often, you are signing away your property title and will become a renter. Instead, speak with a skilled Ft. Lauderdale foreclosure defense attorney like Mark Brown first.
South Florida Homeowners Trust Attorney Marc Brown When Faced with Foreclosure
When potentially losing your South Florida home, you need a qualified foreclosure defense lawyer as soon as possible. Not only will you gain a better understanding of what your rights are, but they can determine if the action against you is legal.
Trust Attorney Marc Brown to provide you with over a decade of experience in foreclosure defense. His years representing South Florida lenders make him the wisest choice when seeking aggressive legal representation to protect your home. To schedule a no-cost legal consultation regarding foreclosures and deficiency judgments, get in touch with the law offices of Marc Brown.