Homeowners who are facing a financial challenge in local Florida may find themselves in foreclosure. Foreclosure happens when the mortgage loan is not paid by the homeowners and the bank begins the process of taking the ownership of the property to recover their losses.
If you think you are entering into the process of foreclosure, then you might be probed by the question of any step that you can take to prevent this process. This blog discusses few Foreclosure Prevention Measures in Palm Beach and Florida that can be taken to keep your home safe:
Foreclosure Prevention Measures in Palm Beach and Florida
Although, these foreclosure prevention measures may not work in all scenarios, but we will still discuss them so that you can make the decision for yourself:
1.Pay off your mortgage/sell your property
This is one of the quickest and easiest ways to prevent foreclosure. You can pay off your mortgage payments which is what your bank wants in the first place. You will then be allowed to stay in your home since they got their money. However, practically it is not always possible because the lack of funds is the reason why you are in foreclosure.
2.Make a deal with your bank
You can sit down with a mortgage or, foreclosure specialist and come up with a deal with your bank. You can talk to them about changing the structure of your mortgage or make the payments spread out so that they are lower each month. However, you should make sure that the deal works in your interest and you do not have to just find yourself in foreclosure again.
3.Do a Short Sale
A short sale is typically when the homeowner sells the property and use the money to pay off the outstanding amount to the bank. This will prevent the foreclosure to have any impact on your credit score and it will help you get rid of the bank pressures.
4.Give your deed in lieu
Through this option you will choose to be a deed-in-lieu-of-foreclosure. This means that you will hand over the deed to your house to the bank and in return they will not put up your house on foreclosure. However, this will only work if your house is worth approximately the amount owing on the mortgage. If that is not the case, then you will be asked to pay the difference.
5.File for bankruptcy
Even though, bankruptcy is a more dramatic measure than a foreclosure because it impacts your whole life, but this will stop the process of foreclosure.
In most cases, people are often confused for which option to go. For your guide, if you can afford payments and wish to keep the house, then a foreclosure workout arrangement with your bank is the best option for you.
You can also choose to move on and consider selling your home in order to pay off your mortgage with the money.
Consider selling your Florida house?
We buy houses in Florida for cash and would love to help you with the short sale. Contact us by filling out the form on this page and we will see if we can work with you.