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ALTERNATIVES TO FORECLOSURE 
NINE OPTIONS WHEN FACING FORECLOSURE
So, your house is in foreclosure; what can you do!? The first thing to do is remember: Time is of the essence, (time is not on your side) take serious thought of your situation and take quick action in order to allow yourself enough time to complete the chosen process.

1. DO NOTHING – If a homeowner does nothing, they will lose their home at foreclosure auction.

Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.

2. PAYOFF / REFINANCE – Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there needs be equity in the home.

3. REINSTATEMENT – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. LOAN MODIFICATION – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you were justified in falling behind and that you have now fixed the problem that caused the late payment or are able to pay at the new rate and terms of the loan.

5. FORBEARANCE – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. PARTIAL CLAIM  – A loan from the lender for a 2nd loan to include back payments, costs and fees.

7. DEED IN LIEU OF FORECLOSURE  – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.

8. BANKRUPTCY  – This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.

--Chapter 7 (Liquidation) To completely settle personal debt.

--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.

--Chapter 11 (Business Reorganization) A business debt solution.

9. Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale.

In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.

Foreclosure or the threat of foreclosure affects the majority of the properties for sale in the current Florida market. 

The fact that a property is not in foreclosure does not mean that it is not affected. The values of all the surrounding properties need to be considered. Buying or selling today is often often not fully understood. The selection of an Attorney,  is one of the most important things that you can decide when buying or selling a property. Our understanding of Real Estate will give you the edge you need to get the most out of your transaction.

We work with knowledgeable realtors, appraisers and inspectors to insure that you are fully protected, whether you are buying or selling you will be well represented in this market by a firm that has your best interest as it's first priority.

In today’s real estate market, the only constant is change. From home values that rise and fall at the whim of the bank's decisions to proceed or not with their foreclosures, to the bank's tightening of credit availability, and the constantly changing of governmental policies, there is nothing that you can count on to be the same. 

We are a firm that has been on top of the changes and often ahead of the trends to help you navigate your real estate transactions.

Call or CONTACT US for an appointment today if you are facing this issues alone.