Your home is your castle. It’s a place of security, comfort, and memories. But what do you do when your home is in jeopardy? If you’re facing foreclosure in Brevard County, Florida, there are some key things you can do to protect yourself. This blog post will outline some of the options available and provide resources to help you through this difficult time. Read on for more information about Brevard foreclosures and what to do if your home is at risk.
What is a Foreclosure?
Foreclosure is a legal process whereby a lender attempts to recoup some or all of the money owed on a loan by selling the property used as collateral. This can be done through either a public auction or a private sale. In most cases, foreclosures occur when a borrower falls behind on their mortgage payments by a certain amount of time, and the lender decides to retake the property and sell it. The process begins when your account defaults, meaning you’ve missed payments. If the problem isn’t addressed after notification of default, then the property will move into preforeclosure. Following preforeclosure is the formal foreclosure process. Depending on where you’re at in this overall process, different options are available to help your situation.
The foreclosure process is frustrating, time-consuming, and negatively impactful to your credit score and overall financial health. If you’re facing foreclosure, it’s important to understand your options and rights in order to make the best decision for your situation.
Options Available to Homeowners Facing Foreclosure in Brevard County
In the Florida judicial foreclosure process, a foreclosure begins when a lender files a lawsuit asking a court to allow a foreclosure sale. This generally can’t happen until a borrower is more than 120 days late on their mortgage. If you’re within this 120-day period, sometimes referred to as “pre-foreclosure” or “default,” then there are several things you can do to avoid the looming foreclosure. We’ll also discuss what you can do if the foreclosure process has already formally begun.
The Default and Pre-Foreclosure Period
One option is loan reinstatement, which allows the borrower to bring their payments up to date and avoid foreclosure. In order to reinstate their loan, the borrower must typically pay the total amount of past-due payments, plus any fees and interest that have accrued. While this can be a significant financial burden, it’s usually cheaper than losing one’s home through foreclosure, and preserves the borrower’s credit score. For these reasons, loan reinstatement is worth considering, but of course, this requires you to have enough money on hand to pay off what you owe.
- Refinance your mortgage
Mortgage refinancing is the process of replacing an existing mortgage with a new loan. The new loan may have a different interest rate, term, or monthly payment amount. Mortgage refinancing can be a way to lower your monthly payments, pay off your home loan faster, or get cash out of your equity.
If you’re behind on your mortgage payments and in danger of losing your home, refinancing might be a way to reinstate your loan and avoid foreclosure. Before you decide to refinance your mortgage, it’s important to compare offers from multiple lenders and understand the fees involved. Although it may be difficult to obtain, refinancing can provide needed relief for struggling homeowners.
A mortgage forbearance is a way to temporarily reduce or suspend your monthly mortgage payments. This may be an option if you’re struggling to make ends meet due to an immediate financial hardship, such as job loss or medical bills. Forbearance isn’t a long-term solution, but it can give you some breathing room to get back on your feet. In
Once the forbearance period ends, you’ll need to resume making regular mortgage payments, which may include catching up on the missed payments. Mortgage forbearance is typically offered for a period of three to six months, but it can be extended in some cases. If you’re considering mortgage forbearance, talk to your lender to see if it’s an option for you.
- Modify your mortgage
Modifying your mortgage can help by permanently reducing your monthly payments, making it more affordable for you to continue making payments on your home. This will help keep you from losing your home to foreclosure and allow you to stay in your home while you work on getting back financially.
There are a number of government programs available that may be able to help, and many lenders also have their own programs in place. Federal government programs include the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP).
- Pre-Foreclosure Sale
A short sale is a sale of real estate in which the proceeds from the sale are less than the amount owed on the property. In other words, the bank agrees to take a loss on the loan in order to avoid foreclosure.
A short sale, while still stressful, can offer some advantages over foreclosure. For one, a short sale will usually have a less negative impact on your credit score. Plus, you may be able to stay in your home during the short sale process. And finally, a short sale is often quicker than a foreclosure, allowing you to move on with your life sooner.
If you’re considering a short sale, you’ll need to contact your lender to come to an agreement, and it’s also helpful to talk with a lawyer, house buyers or housing counselor to learn about the process and find out if it’s right for you.
After Foreclosure Has Formally Begun
- Redeem the property
To redeem a property faceing foreclosure, you’ll need to pay off the full amount of the loan before the foreclosure sale. In Florida, “you can redeem the property before the later of 1) when the clerk files the certificate of sale, or 2) the time stated in the foreclosure judgment, order, or decree. (Fla. Stat. Ann. § 45.0315).” This of course requires the funding to pay off the full loan amount, which may not be available if you’re facing foreclosure in the first place.
- File for bankruptcy
Filing for bankruptcy can be an effective way to avoid foreclosure. There are two options available for filing bankruptcy: Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is a process in which you can ask the court for wiping out most of your debts so that starting over becomes possible. If approved, it puts an automatic temporary stay on creditors trying to collect payments or take other actions such as wage garnishment while files are pending.
In some cases, if you file for Chapter 7 bankruptcy protection, the courts may order your creditors to stop their efforts to collect on your debt. This may give you some time to get back on your feet financially and work out a payment plan (like loan modification or refinancing) with your creditors.
If you file for Chapter 13 bankruptcy protection, you may be able to keep your home by creating a payment plan that allows you to repay your mortgage over time.
Keep in mind, however, that both Chapter 7 and Chapter 13 bankruptcy can have serious negative consequences on your credit score, so it’s important to speak with an experienced bankruptcy attorney before making any decisions.
The benefits of filing for bankruptcy are numerous. It can help you get out of debt, protect your assets, and give you a fresh start.
However, there are also some drawbacks to consider. Bankruptcy can be expensive and time-consuming, and it will stay on your credit reports for seven to ten years. It can be challenging to rebuild your credit after bankruptcy.
Overall, the decision to file for bankruptcy should be made after careful consideration and consultation with a financial advisor or attorney. However, for many people, bankruptcy is the best way to get out of overwhelming debt and start fresh.
Each option has its own set of pros and cons, so it’s important to consult with a housing counselor or attorney to determine which option is best for you given your unique circumstances.
Need help avoiding foreclosure in Brevard County?
If your mortgage is in default (you’ve missed a few payments, but you’re not late by more than 120 days), you need to start considering your options as soon as possible. If reinstatement, refinancing, or a forbearance are not available options, the next best thing could be a preforeclosure sale. If you’re considering selling as a way out before your house is foreclosed, 321housebuyers can help. We are experts in helping people sell their homes quickly and efficiently, for immediate cash, no matter the situation. Contact us today to learn more about how we can help you get out of this difficult situation as quickly as possible.
Brevard Foreclosures – What To Do When Your Home Is Foreclosing – 321 House Buyers