The 5 Possible Alternatives to Foreclosure

Falling behind on your mortgage payments is something that happens to millions of people each year. If you receive a foreclosure notice, or you fear you might get one soon, it can be quite a scary experience. Just because you’re facing foreclosure, however, doesn’t mean that all hope is lost. Today more than ever, there are viable options that can help you get caught up on your payments, and exit foreclosure in a strong position to keep your home long into the future. The following are some of the most popular and effective alternatives to foreclosure in Florida.

Loan Modifications

Modifying the terms of your existing mortgage to help you get caught up is a very popular option right now. There are several state and federal programs that are in place to encourage mortgage companies to help their customers avoid losing their home by modifying the loan. With this option, you can often have your interest rate reduced, and any back payments moved to the end of the mortgage so you can start fresh. In some situations, it is even possible to have some of the principal forgiven entirely. When possible, loan modifications are an ideal solution for those facing foreclosure.

Refinancing

If you have been able to maintain a good credit score, and you have good equity in the home, you may want to consider refinancing. This is essentially getting an entirely new mortgage, likely with a different mortgage company. With this option, you can be out of foreclosure immediately, and may be able to qualify for better mortgage terms than you currently have.

Bankruptcy

Entering the bankruptcy process will put any foreclosure processes on hold until the bankruptcy has been discharged. This can help ensure you are able to stay in your home for several months longer while you are working through the process. Depending on your financial situation, the courts will likely be able to help you keep your home and restructure your bills so that you will be able to make your monthly payments.

Payment Plans

Setting up a payment plan with your mortgage company is often a possibility. This process is known as a forbearance, and allows you to start making your normal monthly payment, plus a portion of the money you owe from previous missing payments. This can take place over the course of several months until you are all caught up.

Rent the Property

Due to the high cost of renting today, you may be able to rent out a room of your house, or even the entire home, for more than your monthly mortgage payment. While not ideal, this can be a good way to be able to keep your home while figuring out what you want to do moving forward.

We are Here to Help

Just about all of these foreclosure alternatives are legal processes that need to be handled correctly. Having an attorney at your side to negotiate with the mortgage company to ensure your interests are being met is very important. Contact the Law Office of Ray Garcia to discuss your options and keep your home.