Most people experience times in their lives when finances are tight, and it can be especially stressful when paying the mortgage becomes challenging. If you are facing foreclosure, Florida has some alternatives that you may want to try first.
No matter what has caused you to default on your loan, consider one of the following options to help you avoid foreclosure.
1. Refinancing
If you still have good credit, refinancing can lower your monthly mortgage payments to an amount that better fits your current financial situation.
2. Reinstating the loan
Homeowners facing foreclosure can resolve the issue by paying off the loan in full, including interest, though this option is typically difficult unless you have a large sum of money to do so.
3. Modifying the loan
Similar to refinancing, modification extends the duration of the loan, lowering the monthly payment amount. However, it can be difficult to get a lender to agree to a loan modification.
4. Deed in lieu
If you are OK with leaving your home, a deed in lieu of foreclosure surrenders the home to the lender, essentially getting you out from under payments.
5. Short selling
Another option for those who want to get rid of their homes is to short sell the property. This means selling the home for less than the amount remaining on the mortgage.
6. Chapter 13 bankruptcy
As a last resort, you may choose to file Chapter 13 bankruptcy. This gives you time to repay the reinstatement, in addition to arrears payments, which can be expensive.
Foreclosure alternatives such as these are possible, but they can be complex. Understanding the options available to you is essential in fighting foreclosure.