To many people, receiving a notice of default on their home means that they have very little if any hope of saving it. Truth is, even if a homeowner is over three months behind on their payments, there are still a few things they can do in order to stop foreclosure. In Florida, many people suffer through the repossession of their home each year. But there are ways to keep this from happening.
One of the first things that can be done to keep from losing a home is to try and work out a deal with the lender. In most cases, a lender would rather work with the debtor than to repossess the house. It is a good idea to see if the lender will find a way to lower the payments or extend the amount of time that the debtor has to catch up on them. Of course, if the homeowner fails to keep his or her end of the deal, the home will still be lost.
Conducting a short sale is another way for the debtor to avoid foreclosure on the home. Since the lender will likely have to sell the home anyway, it will most likely agree to allow the homeowner to do all the work involved in exchange for delaying the foreclosure. If the debtor can find a buyer before the foreclosure process is completed, he or she can save their home from foreclosure. Of course, the homeowner still has to give up their home to the new buyer.
One way that a homeowner can stop foreclosure and perhaps even get to keep the home is by filing for bankruptcy. The very second bankruptcy is filed, the foreclosure process is stopped. At that point, federal law prohibits the lender from trying to collect any money on the debt. If the bankruptcy agreement is set up for the debtor to keep the home, a payment plan will be worked out.
Anyone who is facing the loss of his or her home in Florida can consult with a bankruptcy attorney who can help stop foreclosure. By filing for bankruptcy, the homeowner can find a way to keep his or her home from being repossessed. The bankruptcy lawyer can guide the debtor through the process of filing the proper paperwork in order to stop creditor harassment and keep his or her home.
Source: hgtv.com, “5 Ways to Stop the Foreclosure Process“, Tara-Nicholle Nelson, May 27, 2017