If you own a home in Florida, you've likely encountered ups and downs regarding your financial status (and ability to make payments). Although it's not uncommon to face money problems once in a while, a particularly trying time may call for extra support.
If you live in Florida year round, you've likely noticed that the state's economy has navigated the same ebbs and flows as that in most other states. In recent years, economic crisis has thrown many households into downward spirals, leaving homeowners and their families grasping at straws and trying to keep their heads above water. If you're one of many currently facing financial problems, you may also be worried that you could lose your home.
Although no two Florida families are the same, many understand what it's like to face challenging financial situations. You may have simply fallen a little behind in your mortgage payments due to the rising cost of living. Maybe you are facing an unexpected emergency that brought you undue financial hardship. Either circumstance can quickly snowball into financial disaster, and now you risk losing your home to foreclosure.
Recent information indicates that, through October of 2016, approximately 1 in every 830 homeowners in Miami-Dade County was facing foreclosure. In Broward County, it's about 1 in every 620. If you are struggling to keep up with your mortgage payments, you don't have to become one of these statistics.
People who are facing foreclosure will do almost anything to save their homes. Sadly, there are numerous companies that prey on distressed homeowners and happily to take their money under the guise of helping them resolve their mortgage problems.
When people are struggling to keep up with their house payments, it doesn't take long for the mortgage company to start threatening foreclosure. One of the first questions people ask is what is going to happen to their credit rating. This is an important question, but there may be larger questions you should be asking, like, "How can I avoid foreclosure completely.?"
When you are trying to save your home, lowering the amount you owe on the property is one of the best things you can do. Depending on the circumstances of the situation, this can be a very accessible option for people who have taken out home-equity loans or other types of second or third mortgages through a process known as lien stripping.
While the values of many Florida homes have recovered since the real estate crash, several homeowners still find themselves in a situation where they owe more on the mortgage than the property is worth. As recently as a few years ago, many homeowners simply walked away and allowed the bank to foreclose; a practice commonly referred to as a strategic default.
Unfortunately, there are many people who, to no fault of their own, fall behind on home payments and ultimately face foreclosure. Whether you are having a hard time paying your mortgage due to a medical emergency, unexpected job loss or any other reason, it is important to remember that you may have many options available - including a possible loan modification and other debt relief alternatives.
Loan modification is becoming an increasingly popular method of saving a home from foreclosure. This is especially true in Florida, where state law now requires lenders to rework loans with terms that are more manageable for the homeowners who are at risk of foreclosure. Nevertheless, lenders are in the business of making money, and many of will still attempt to finalize deals that serve their own interests more than the homeowners.