6 Common Alternatives to Foreclosure in Florida
If you are having a hard time making your mortgage payments, it may seem that you cannot avoid foreclosure. However, you need to understand that there are several alternatives to foreclosure in Florida.
In more than 50 years of combined legal experience, our foreclosure defense attorneys at Suncoast Civil Law have helped thousands of Floridians avoid foreclosure by using one of the alternatives to foreclosure.
Speak with our Bradenton foreclosure defense lawyer to determine the best alternative to foreclosure in your unique situation.
What Are the Alternatives to Foreclosure?
In Florida, there are six common alternatives to foreclosure:
- Forbearance. You may be able to sign a forbearance agreement with your lender to ensure that the lender will refrain from initiating the foreclosure process for a predetermined period of time. This can be an option if you have experienced a temporary loss of income, but you expect things to go back to normal to continue making full payments.
- Reinstatement. You can opt for a reinstatement when you are able to bring the delinquent loan current in one payment. A reinstatement stops the foreclosure process because you are allowed to catch up on payments.
- Loan modification. If you and your lender agree to modify the loan agreement, you can do so to prevent foreclosure. However, before agreeing to change the terms of the agreement, the lender will consider the financial benefits and losses associated with the modification. For this reason, it is important to be represented by an experienced foreclosure defense attorney to increase the chances of your lender approving a loan modification request.
- Deed-in-lieu of foreclosure. Another alternative to foreclosure is to transfer the title of the property to your lender. Turning the deed for the property over to the lender could be beneficial for everyone: the borrower and the lender сan avoid a potentially costly and time-consuming foreclosure process.
- Short sale. In some cases, it may be possible to employ a short sale to avoid foreclosure. With a short sale, the lender allows the borrower to sell the property for less than the unpaid loan amount.
- Bankruptcy. You could also file for Chapter 13 bankruptcy as an alternative to foreclosure in Florida. By filing for bankruptcy, you can reorganize your debt into a manageable payment plan. When the borrower files for bankruptcy, the court will issue an automatic stay, preventing creditors from trying to collect debts. In other words, collectors and creditors are not allowed to garnish your wages, repossess your property, or even harass you with phone calls throughout the automatic stay.
Contact a Bradenton Foreclosure Defense Lawyer
With a foreclosure defense lawyer on your side, you may be able to prevent or stop the foreclosure process and protect your legal rights as a homeowner in Florida. If you cannot choose the best alternative to foreclosure, speak with our lawyers at Suncoast Civil Law to review your particular situation and advise you on your options. There may be other alternatives to foreclosure available in your case. Consult with a lawyer to find out about your particular situation. Call at 941-366-1800 for a consultation.