Facing Foreclosure: What Are Your Options?

Are you facing foreclosure? Unfortunately, here in Florida you aren’t alone. The state of Florida, and Miami-Dade County in particular, regularly leads the nation in foreclosure activity.

It’s important to understand that you do have options. In this blog entry, we’re going to explore several ways in which you may be able to avoid foreclosure. This is general advice – if you’d like advice specific to your situation, please contact us today to learn more:

1. Home Affordable Modification Program. The Home Affordable Modification Program (HAMP) is a government-created program which enables qualifying homeowners facing financial distress to modify the terms of their mortgage in order to create more affordable monthly parents. Please contact us to learn more about how this program works!

2. Negotiate with your lender. Talking to the lender about your situation is an important first step, although we highly recommend speaking to an attorney before doing anything else. The lender may be willing to modify the terms of your loan. Sometimes lenders are willing to extend the amortization schedule, lower the interest rates, or even “forgive” missed payments. It’s important to document every conversation with your lender: be certain to always write down the name and phone number of the person with whom you are speaking.

3. Deed in lieu of foreclosure. A deed in lieu of foreclosure is a process in which you essentially surrender your home to the bank – but it allows you to avoid the formal foreclosure process, and results in less damage done to your credit history than a foreclosure.

4. Short sale. If your home is worth less than the amount you still owe to your lender, a short sale may be an alternative to foreclosure. A short sale involves selling a house for its current value – which allows the lender to recoup a portion of their loan and limit their losses. This process does require agreement from the lender, and it negatively affects your credit, though not as much as a foreclosure.

5. Selling the property. Finally, in some cases, simply selling the home outright is a viable option – as long as the home is worth more than you still owe your lender.

The prospect of losing your home can be terrifying. We know how important your home is to you and your family, and we’ll do everything we can to protect your rights. Please contact us today at (305) 227-4030 to discuss your options.