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Homeowners have options for avoiding home foreclosure

On Behalf of | Aug 28, 2018 | Firm News, Loan Modification vs. Bankruptcy

Owning a home can be a stressful but rewarding experience — from tackling those first home repairs to arguing with one’s spouse over paint colors, there is truly nothing else like it. For those who encounter brief financial problems that make paying the mortgage difficult, those experiences could all disappear with foreclosure. It is important for Florida homeowners to understand that there are options for avoiding home foreclosure. 

Foreclosure is the process by which a lender repossesses a home that an owner has stopped paying for. When homeowners first realize that they will be unable to pay the mortgage, they should contact their lender and alert them to their situation. Being up front as early on in the process as possible is important for utilizing one of the many available alternatives, such special forbearance. This is an arrangement made between a lender and a homeowner, which temporarily reduces or even suspends payments after a sudden increase in expenses or decrease in income. 

For those who can resume making regular payments but need help to become current, a partial claim may be appropriate. In a partial claim, a lender works with the homeowner to obtain funds from FHA-Insurance fund. This involves a one-time payout and is not meant for those who need ongoing financial help. 

Mortgage modifications can make monthly payments lower and more affordable. This process involves refinancing a mortgage for lower payments, interest rates or extended terms. With lower monthly payments, some homeowners can more easily catch up on what they owe, resume normal payments and keep their house. 

Florida homeowners put a lot of time, effort and money in their homes. Avoiding home foreclosure is probably a top priority for those who are experiencing financial strains that are affecting their ability to make their monthly mortgage. Early action is essential, and many people choose to work alongside knowledgeable counsel who can uphold their rights when dealing with mortgage lenders. 

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