The “Big F” – foreclosure.
Anyone who has ever taken out a loan or missed some of the payments on a loan knows the fear and anxiety that can come with the possibility of a foreclosure. Unfortunately, the state of Florida led with a foreclosure rate of 11 percent at the end of 2012.
Not only are those numbers scary, but it can be difficult to make payments on a loan and prevent a foreclosure from occurring. If you are nearing a possible foreclosure on your home, there are several things you can do to help prevent and avoid a foreclosure before it happens to you.
Negotiating With Your Lender
It doesn’t matter who you have taken out a loan from, the end result is the same. The lender simply wants their money, some way, somehow.
It is better to negotiate something with your lender sooner rather than later. A lender may not want to change the loan arrangements with someone who has already missed three or four payments, so before you miss a first payment, contact your lender immediately.
Try to discuss altering the loan agreement, such as adjusting the payment options to something you may be able to afford. For example, if you have already missed a payment, offer to add that to the balance but lower your monthly costs so that you will ensure they are paid on time.
A lender obviously wants a larger amount from you each month but they will likely work with you rather than risk receiving nothing.
File for Bankruptcy
This may not be your first option, but it can benefit you and prevent you from facing foreclosure. Be sure to research how bankruptcy works before you file. You can decide whether it is right for you or not.
Once you file for bankruptcy, if you are days away from a foreclosure, this action will ‘halt’ the process. Filing for bankruptcy will protect your home from being foreclosed on by an outside lender.
After you file for bankruptcy, even if the lender is granted a motion for relief from the stay, which is where they will be able to continue the foreclosure, you may still be allowed an extra month or two before the process actually begins. This will give you time to figure out what your options are and how you may be able to talk things out with your lender.
Hire a Foreclosure Attorney
A West Palm Beach foreclosure attorney can be your best option if you are facing this difficult situation and don’t know where to turn for help.
Although there are many different options available, such as the Home Affordable Modification Program, which will allow you to keep your home, a foreclosure attorney knows the state and federal laws well enough to help you get the most out of your problem and find the best solution for you.
We don’t want to see you lose your home or fight a battle with a lender on your own. At the Law Office of Kelley & Fulton, it is our duty to do what we can to ensure you have the best defense and answers to any foreclosure problems. Contact us today at 561-491-1200 to hear about our services and what possible solutions we may have for you. We want to help you before it’s too late.