How to Avoid Foreclosure in Florida

Florida is the state that has one of the highest rates of foreclosure in the United States. In this state, the process of foreclosure is judicial, which means that the lender has to file with the court in case he or she wants to take possession of the borrower’s property. The foreclosure procedure can take any time between four to six months. All Florida residents at risk of losing their homes think a lot about it and want to know how to avoid the foreclosure process. Further, the possible options to stop the foreclosure process will be discussed to help homeowners prepare when they face the risk of eviction.

At first, it is necessary to figure out why foreclosure may take place. When a Florida resident takes out a loan to buy a residential property, he or she has to sign a mortgage and a promissory note that ensure that the homeowner is obliged to repay the loan under the specified terms and conditions. The payment is considered late unless it is not done within the grace period of 10 to 15 days after the due date.

In case the homeowner loses several mortgage payments, he or she will receive a breach letter or a phone call reminder about the fee. The lender has the right to file with the court and begin the foreclosure process in case the payment has been delayed for 120 days. Therefore, these letters and phone calls should not be ignored. The homeowner needs to start working on the alternative decision right away to avoid foreclosure. The breach letter usually contains such useful information as the default, the act needed to cure it, the date by which it can be cured and the result of the failure of the cure. Usually, the homeowner can take action to avoid foreclosure within 30 days after receiving the letter.

Avoiding Foreclosure in Florida

In most cases, there are ways for homeowners to avoid or to timely stop the foreclosure process. All they need is to know their rights and responsibilities and how to use the professional assistance to succeed in avoiding foreclosure. It is recommended for homeowners to take one or several of the following steps:

  1. Contact the lender: This is one of the most effective ways to stop the foreclosure process. Communicating with the lender, the homeowner needs to find a way to adjust the payment plan. The lender will most likely be positive about it, because he or she can lose much more money if filed with the court. Therefore, making an agreement can be an efficient decision for both the homeowner and the lender.
  2. Contact the company that provides assistance with stopping foreclosure: Taking this step, the homeowner needs to be careful and choose only reputable companies, as there are many scammers. The safest option is to talk to the representative of the Florida Department of Housing and Urban Development (HUD). After talking with the professionals, the homeowner will better understand his or her rights and know what to do in the particular case.
  3. Refinance the home: According to the Florida law, the homeowner can refinance the home and has to inform the lender and the court about it. The process can take approximately two weeks.
  4. Sell the home: With the help of a real estate agent, the home can be sold within one month. It is also up to the real estate agent to contact the lender and agree on the payment in this situation. The price of the house will depend on the exact location in Florida. The homeowner needs to be ready to accept a low price in order to sell the house as quickly as possible.
  5. Request a longer payment period from the court: In some cases, the court can add a month or two if the homeowner has a reason he or she cannot pay at the moment, and a proof that they will be able to pay within the additional period.

Do Not Ignore Foreclosure Warnings

If the homeowner fails to answer the breach letter within the given period of time, the lender may receive a default judgment from the course, thus automatically winning the case. For this reason, all homeowners need to be attentive in case they receive breach letters, and then act accordingly and timely in order to avoid losing their residential properties.

In any case, whether the homeowner acts in time or not, he or she needs to hire a professional foreclosure defense attorney to find out the available options surrounding a particular case and what he or she can do to end the process. Professional advice is vital in such situations, as it helps to decipher the best ways out of the problem that will be favorable both for the homeowner and for the lender.