Foreclosure OptionsPosted on: March 30, 2017 at 2:29 pm
You Have option
Many Florida residents find themselves facing tough economic challenges these days. The economic downturn faced by our country has caused many hard working Americans to lose their jobs, face foreclosure, consider bankruptcy, or pay their debts by cashing in their hard-earned retirement savings.
Attorney Niurka Fernandez Asmer will offer you potential solutions to those facing financial hardship and the possibility of losing their home. Here are some options to consider:
Option 1: LOAN MODIFICATION
A loan modification is the first of many options a Florida homeowner must consider before cashing in any retirement savings to pay their mortgage. Attorney Asmer will work with lenders in an attempt to lower your monthly mortgage payments. Under the federal HAMP program, if a homeowner is faced with a financial hardship and their mortgage payment exceeds 31% of your income, the bank mustevaluate the loan for a modification under the “Making Homes Affordable” program. If the borrower does not qualify under HAMP, then the lender may entertain an internal modification of your current loan. BE ADVISED: Not all borrowers will obtain a loan modification. The banks will review bank statements, pay stubs, tax returns and other financial documents to determine your debt to income ratio. If your debt is too high, you may not qualify. Additionally, if your total arrearage exceeds 30% of your total mortgage, then you may fall outside the guidelines of the federal program.
OPTION 2: FORECLOSURE DEFENSE
Foreclosure Defense can be a very powerful tool if you are trying to obtain a loan modification from your lender, or have a short sale offer on your property. Many times, a lender will proceed with a foreclosure action before the modification application has been reviewed. Banks are usually unwilling to cooperate without court intervention. If this occurs, FL Legal Group will force your lender to attend mediation in order to negotiate a loan modification that both parties can accept. Exercising your legal rights under Florida and Federal law will also provide you with additional time to obtain a loan modification, short sale, or, if necessary, file for Chapter 13 Bankruptcy to catch up on your back payments.
OPTION 3: SHORTSALE
If you do not qualify for a loan modification based on your decreased income or debt to income ratio, you may have to sell your property. If the value of your home is worth less than the note owed on your property, you will have to get a short sale approved by your lender. This is a very document intensive negotiation process, which must be handled by an experienced real estate attorney. The same documentation necessary to apply for a loan modification are required in a short sale. However, the bank may want to negotiate and provide a counter-offer to the contract for sale. If you do not have an experienced attorney reviewing the bank’s closing documents, you may still be liable for a deficiency on your mortgage.
OPTION 4: DEED IN LIEU OF FORECLOSURE
If you do not qualify for a loan modification and are unable to sell your home, you may want to consider a deed in lieu of foreclosure. This is basically turning your keys over to the bank. In some circumstances (not all) the bank will offer cash in exchange for waiving any deficiency on the mortgage. Basically, you agree not to fight the foreclosure process, move out and the bank will pay you to leave quietly. Again, you should have an experience real estate attorney review your deed transfer documents to ensure that you will not be liable to the bank on the note if you are surrendering your property.
OPTION 5: CHAPTER 13 BANKRUPTCY
It used to be that Bankruptcy was a “bad word,” and held a stigmatism to its meaning. Now a days, the bankruptcy courts are overwhelmed with bankruptcy filings to either discharge debt or reorganize personal debt. Filing a Chapter 13 Bankruptcy allows an individual to eliminate unsecured debt, keep their homes, and retain their retirement investments. A Chapter 13 enables homeowners to catch up on their mortgage payments and pay off a percentage of credit card debt over a 3 – 5 year period, interest free, based on their disposable income. In a chapter 13 bankruptcy you may also be able to “strip off” any junior liens (second mortgages) if your property is underwater and does not secure any second lien holders. At the completion of your payment plan, if any debt is left over, it is discharged by the Bankruptcy court.
OPTION 6: CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy would discharge most of your debt without a repayment plan. However, this option will not save your home from foreclosure. If you obtain a loan modification and have additional credit card debt, you can still file for Chapter 7 bankruptcy and keep your home. In the end, Chapter 7 provides you with a fresh start.
With so many options available, it is important to contact an attorney with experience in both bankruptcy and foreclosure litigation. To learn more, contact FL Legal Group today at 800-984-9951 or email Attorney Asmer at Inquiry@FLLegalGroup.com.
For a Consultation of Your Legal Options
Call FL Legal Group today for a consultation to learn your rights and options available to you. If you are facing bankruptcy, foreclosure or violations of consumer rights FL Legal Group can help you navigate through the complex legal process and provide resolution. Call today and let us help protect your legal rights.
FL Legal Group is a full service law firm, practicing in the areas of Real Estate Law, Foreclosure, Bankruptcy, Loan Modifications, Short Sales, Condo and HOA laws, and Construction Law.
You can contact us at (800) 984-9951 to schedule a consultation, or email your questions to Inquiry@FLLegalGroup.com.
Author: Nicki Asmer