You are not alone. According to RealtyTrac, 1 in every 268 Florida homeowners received a foreclosure filing — a default notice, foreclosure sale notice or bank repossession — in October of this year. Likely countless other Florida homeowners fell behind on their mortgage payment as the economy continues to struggle, leaving many without jobs or newly unemployed.
If you were among the Tampa Bay area homeowners who received a foreclosure filing and are concerned about what to do next and whether the home you've created will be lost to the bank, take a deep breath. There are options available.
First and foremost, you can fight the foreclosure! A Tampa Bay foreclosure defense attorney can fully discuss your options with you. With the crisis created by the big mortgage lenders, many who are attempting to foreclose on Florida homes may not have the legal right to do so. Florida foreclosure laws require specific proof that a lender has the legal right to foreclose on your home.
Once you've been served, you have the right to respond to the foreclosure suit against you. The Florida foreclosure process is taking about two years to complete at this point, and with a properly defended foreclosure you may 1-be able to keep your home, or 2- stay in your home, rent-free, while the foreclosure winds its way through the legal system.
Don't Wait — Pre-foreclosure Defense is Available Too!
A recent article in the St. Petersburg Times estimated that a mortgage lender spends approximately $35,000 on each properly-defended foreclosure. Many banks who were once unwilling to work with homeowners to find solutions that did not result in foreclosure are now changing their tunes because the cost of foreclosure is so high.
Florida homeowners facing foreclosure or who fear they may fall behind on their mortgage payments are having better luck with pursuing foreclosure alternatives, including loan modifications, short sales and deeds-in-lieu of foreclosure. For those who want to stay in their homes, there may be options. For those who want to get out from under a home that's no longer worth what they're paying for it, there may be other options.
A loan modification is exactly that — it's an agreement between you and your mortgage lender to change the terms of your original loan agreement. A loan modification may include a reduction in the principal amount of your mortgage, a lowered interest rate and/or the elimination of late fees or penalties.
In a short sale, your lender agrees to a sale of your home for less than what you currently owe. A deed in lieu of foreclosure allows you to give back your home to the bank voluntarily, outside the foreclosure process. Both a short sale and deed in lieu carry the potential for a deficiency judgment against you, the homeowner, if not structured properly. A Tampa Bay foreclosure defense attorney can more fully explain deficiency judgments as well as protect you during a short sale or deed in lieu transaction.
While the prospect of losing your home, for many, is scary and unnerving, depending on the outcome you seek, you have several options available to you. Don't wait for the bank to control what happens to your home. Take back control, talk to a Florida foreclosure defense attorney today!
