If you have trouble making your mortgage payments in Florida, you need to know what your options are. Ignoring the problem will not make it go away, and if you do not take action, it can end in foreclosure. Fortunately, there are a few options available that you can consider. You will need to contact your mortgage company to discuss all of the possible options.
Mortgage Forbearance
With the mortgage forbearance option, your mortgage payments will be suspended or reduced for a period of time that you and the lender agree to. At the end of this period, you will start making regular payments again. You will also need to pay a lump sum or additional partial payments to bring the loan current.
This is a good option if your income has been temporarily reduced. Forbearance will not help if you cannot afford the property anymore. It will also not be the best option if you are facing a long-term reduction in your income.
A Loan Modification
If forbearance is not a viable option, you should consider a loan modification. As the name suggests, this involves changing one or more terms of the mortgage contract to make the payments more manageable. The changes will need to be agreed with the mortgage provider.
Some of the modifications that are considered include a reduction in interest rate, extending the mortgage term, and adding missed payments to the balance of the loan. Some providers will also reduce the amount you owe on your mortgage by forgiving or canceling part of the debt. The forgiven debt may be excluded from income when you calculate your tax, but you will need to verify if this is possible.
A loan modification is the best option if you are facing a long-term reduction in your income. if you are going to talk to your mortgage lender about this, you have to show that you are making a good-faith effort to pay your mortgage. To do this, you can show that you have reduced other expenses. This will make the lender more likely to talk to you about this.
Repayment Plan
Many mortgage providers are open to a repayment plan if you fall behind on your payments. With this option, the lender will offer a fixed amount of time to repay the amount you are behind. During this time, a portion of what you owe will be added to your regular payments.
This is the best option if you have missed a small number of payments. However, if you are facing longer uncertainty, you should consider a different option.
Chapter 13 Bankruptcy
This is the last resort and should only occur if you cannot agree on a remedy with your loan provider. Bankruptcy will stay on your credit report for ten years and should never be taken lightly. This can make it difficult to get credit or insurance in the future.
If you have to file bankruptcy, you will need to file Chapter 13. If you have a regular income, this type of bankruptcy allows you to keep the property, such as a mortgaged house or car.
There are a few options you can look at if you are behind on your mortgage in Florida. You will need to contact your mortgage provider to talk about your options.
Utilizing the options discuss in this article before its too late will allow you to save your home. With that being said you still have the final option of selling the property to reputable we buy houses company that will pay cash for your property and buy it as is.