What does acceleration mean for my mortgage payments?
Owning a home is something that people work very hard for. It takes a lot of time, energy and money to purchase a home, and the work doesn’t stop there. Once you own a home, it is up to you to maintain that home and take care of it. You will also be responsible for paying off the house with monthly mortgage payments.
For many Floridians, this last part proves to be the hardest part. Whether you have lost your job, taken on some considerable medical debts, gotten divorced or suffered some other type of financial set-back recently, you may end up defaulting on your mortgage payment. In this situation, you could be notified that your lender is demanding immediate repayment of the balance remaining on your loan. This is referred to as acceleration.
Acceleration is something lenders may pursue if your mortgage explicitly allows them to. Essentially, it means that the lender has the right to make you pay the rest of a loan balance if you default on a payment. Generally speaking, homeowners will receive a letter from their lender notifying them that it is exercising its contractual right to pursue acceleration.
In most cases, this will be all but impossible for a homeowner to do. If a person misses one mortgage payment, it is unlikely that he or she will be prepared to hand over the entire balance remaining on the loan immediately in a lump sum payment. In the event that a homeowner cannot pay this, foreclosure will be the next step.
This can all sound extraordinarily intimidating to homeowners. However, if you have recently received or think you may receive a notice of acceleration, you need to understand that you have the right to work with a lawyer to protect yourself and your home.
It may be possible to challenge the acceleration if no such provision exists in your mortgage or dispute the move to foreclose based on statutes of limitations that are affected by acceleration. It is also possible to put a stop to foreclosure by filing for bankruptcy. In order to explore these and other options that may be appropriate and effective, it can be crucial to discuss your situation with a legal representative familiar with foreclosure laws and procedures in Florida.