There are few things in life more devastating to families than the prospect of foreclosure, especially if you love your family home and cherish the time you’ve lived there. Nevertheless, your situation can change suddenly without any warning, and foreclosure may seem inevitable.
For local Florida homeowners facing foreclosure, the pressure can be unbearable. To make matters worse, the foreclosure process can get dragged out months or even years, causing an unfair amount of pain and anxiety for anyone involved.
Luckily, there are options you can look at here in Florida – perhaps more than you were initially aware of. Here in Miami, many strategies exist that aim to assist homeowners facing foreclosure. These strategies are legal foreclosure avoidance tactics that you can implement to help resolve your situation and move forward.
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In this article, we’ll be discussing three of these strategies and how you can apply them to evade foreclosure in Miami. These approaches are both legal and ethical, allowing you to bypass foreclosure and the frustration involved. They aim to successfully minimize any long-term financial commitments that may be troubling you and ease the situation you are in. Remember, every home, family, or financial concern is unique, and as such, not every strategy will match your case as well as you hope. However, with a little bit of patience, you should be able to find one approach that suits your requirements.
Strategy #1: Work out a deal with your lender
The first strategy is referred to as a “foreclosure workout.” This involves getting in touch with your lender, sitting down, and discussing the problem sensibly. Don’t panic! Just be calm and let them know that you’re finding it difficult to make your current mortgage payments. You need to be clear and tell them directly that your goal is to remain in the property and keep paying your mortgage.
Contrary to popular belief, lenders DO NOT want to foreclose and kick you out! Banks need happy families and homeowners who desire to pay their mortgages. Foreclosure is an expensive process that doesn’t benefit banks as much as you expect. This means lenders are often willing to work with homeowners towards an agreement that suits you and the agency involved. This might include a short reprieve on your mortgage payments or a catch-up strategy where outstanding mortgage payments are spread out, allowing you to catch-up and pay them off. You may even be able to restructure the outstanding amount that you owe.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure, but you can use this option to evade foreclosure; therefore, it is still considered a foreclosure avoidance strategy. By filing for bankruptcy, you blatantly indicate to all of your creditors that you will not be able to cover any of your bills financially. It will immediately halt the foreclosure process and prevent creditors from legally pursuing foreclosure.
However, this strategy is not to be taken lightly! Filing for bankruptcy in many cases should be considered a last resort – a failsafe if there’s nothing else that can be done. Even after filing for bankruptcy, you may be forced to sell off some of your assets to pay off your creditors. And bankruptcy will tarnish your credit score for years affecting your choices and opportunities in the future. It could impact applying for a loan, getting a car, or even being accepted for a job. As such, we hope it’s pretty evident that this SHOULD NOT be your first line of defense!
Strategy #3. Short sale
Strategy #3 is a short sale and requires selling your home and paying off the remaining amount on your mortgage using the sale proceeds. Many homeowners facing foreclosure prefer this strategy – it’s proactive, fast, and very effective.
You get to feel in control again by taking matters into your own hands. Feeling useless and unable to act is what causes a lot of the anxiety that surrounds foreclosure. But, by actively deciding what you want to do, you will eliminate almost all of your stress!
Depending on your situation, you could even sell your Florida house fast (in just one week!) That’s because it’s local! Our organization, Sunshine State Buyers is based locally in Miami and can work on a short sale together with you right now!
Check out our website >>> We Buy Houses Fast Florida!
A short sale is an extremely effective solution because it wipes out all or most of your remaining loan. You will be responsible for any amount that isn’t covered by the proceeds of the sale. However, in some cases, for instance, if your house is valued less than what you owe, you may be able to work out a deal with your lender.
The downside? You will have to leave your house behind. But, you’ll be able to move forward knowing that you’ve made a smart long-term decision for yourself, your family, and your finances. The impact on your credit score will be far less compared to the damage foreclosure or bankruptcy can do. By opting for a short sale, you’ll able to move to someplace new and start fresh, free from the financial burden of your previous mortgage!