Top 11 Expert Tips: Avoid Foreclosure in South Florida Now !

How to avoid foreclosure in the State of Florida 2022

Buying a home can be a daunting experience. Imagine you own a house for 3 years and have paid all payments on time and in full. When the fourth year arrives, the job is eliminated and you are left without a job and a salary. If this is your fear, you may be one of the millions of vulnerable Americans who have an adjustable rate mortgage (ARM). That means your interest rates will rise to a much higher percentage later this year. On the other hand, you may be the best borrower to choose a non-traditional mortgage. Perhaps you're up to date on your mortgage, but you're worried about company layoffs and rising expenses.

1 - How can I avoid foreclosure in Florida? 

Do your homework.

Many homeowners end up with unaffordable loans because they either didn't understand the terms of the loan or were scammed by loan sharks. "A good portion of the people we see are people who got a loan they shouldn't have gotten in the first place," - says Phyllis Salowe-Kaye of Citizen Action, a major mortgage crisis counseling agency. Are you one of those who was misinformed when taking out a mortgage? It's time to make sure you don't make that mistake again. To help you avoid foreclosure in Florida, below is a list provided by the U.S. Department of Housing and Urban Development. Several other websites also provide free counseling for distressed homeowners on the websites of the Attorney General, the Department of Banking or the Housing Finance Agency.

2- Contact your lender immediately

If your loan has gone bad, you will lose your leverage. Even for those who don't have a credit problem yet, there are new programs to avoid foreclosure in Florida. Six large Project Lifeline lenders (Bank Of America, Citigroup, Countrywide Financial, JP Morgan Chase, Washington Mutual and Wells Fargo) have agreed to suspend foreclosure proceedings for 30 days for eligible borrowers who want to keep their homes in the Sunshine State.

3- Open all lenders' letters

Subprime lenders are offering to reset ARM mortgages by mail months before the scheduled rate reset.

4- Be patient

Too many people try to solve the problem with quick take-away advice,! - Salowe-Kaye says. "The fastest way to get rid of your mortgage is through We Buy Houses Florida, click the link for more information. For those who are willing to wait an eternity for a solution, William Sanchez of the Tampa Bay Community Development Corporation in Clearwater, Florida, offers advice. He informs that "this can't be solved with one phone call." The hotlines are crowded, it can take an eternity to reach the person handling your loan, and there's no telling how many homeowners will actually keep their homes. Still, "lenders are definitely more willing to work out plans." Be prepared to be dogged by your lender's knowledge and capabilities.

5- Contact a free or low-cost housing counselor

For information on HUD-certified counselors who can help homeowners avoid foreclosure in Florida, visit the U.S. Department Of Housing and Urban Development website.

6- Enlist the help of a qualified expert to help you navigate the foreclosure process.

Don't stop with a housing counselor - the closest number to call is a foreclosure attorney. Ignore lawyers who advertise "quick solutions" on TV, the Internet or over the phone. The only quick solution is to sell your house quickly to the "We Buy Houses Florida" company. They are the only company you can trust to give you a free consultation and help you navigate the foreclosure process. To find a lawyer you can trust, contact Legal Services Corporation.

If your income level is low enough, they can connect you with an affiliated agency. For more help, call the Florida State Bar and find a county bar association.

7- You may be eligible for special assistance.

The federal FHASecure program may provide a fixed-rate refinance option for homeowners who have an adjustable-rate mortgage with a good credit rating. Current and former military personnel who have served in the last 90 days may be eligible for the Servicemembers Civil Relief Act, which provides protection from foreclosure.

8 - Bankruptcy is not an easy way out

Under current Florida state law, bankruptcy can stop or delay foreclosure. Seek legal advice from a reputable source before proceeding. Bankruptcy judges are not authorized to restructure the debt of a mortgage loan related to the primary residence. "Debtors can file a Chapter 13 bankruptcy petition, which temporarily suspends the foreclosure process. The problem is that to comply with the Chapter 13 plan, a high-cost borrower must be able to make consistent mortgage payments and also pay a certain percentage of delinquent debt and other debts each month," says Josh Zinner of the Neighborhood Economic Development Defense Project in New York City. In addition, keep in mind that assistance programs like Project Lifeline are not available to borrowers who have declared bankruptcy.

9 - The most important factor in avoiding bankruptcy in Florida is keeping up with payments

Mindy Wright, a housing counselor at Elyria, Ohio, says people often make the mistake of paying off credit card bills before making their monthly mortgage payment. People do this because the credit card companies call them immediately and often use threatening tactics to get the borrower to pay. However, banks take a long time to contact them and only communicate by mail. When the borrower receives the default notice in the mail, it is too late. The borrower now has to pay interest and late charges on top of the late payments. Lenders typically contact their borrowers after 60 to 90 days. The credit card companies will harass you day and night until you pay the overdue debts. Wright advises homeowners to put off paying the credit companies and pay the mortgage payment first. "If you don't pay your credit card bill, it can destroy your credit score, but a foreclosure will have a much more negative impact on your credit score - plus you'll have no place to live," he says.

10 -Tighten your seat belt.

Give up luxuries like cable TV and Netflix. When you bargain, you gain bargaining power that way. A willingness to bring any money and a willingness to monetize assets like jewelry or a car will play in your favor. "Servants want you to sacrifice yourself. "Show you're trying," says Michael van Zalinger, director of Neighborhood Housing Services in Chicago. Make sure you have your bank statements, bank statements and tax returns ready when you talk to the bank.

11 - Familiarize yourself with mortgage exercises to avoid foreclosure in Florida

The best solution would be to refinance into a long-term mortgage, spreading the late payments over time and raising the interest rate slightly. This option requires good credit and is rarely viable for the average Florida homeowner. You may also not be able to afford the associated fees. An alternative would be an installment plan or loan modification.