You can stop the foreclosure process if you live in Jacksonville, FL if you are aware of your options. It is far too common for a homeowner to give back a property to a lender because pressure is placed on them from a mortgage servicer. There are a number of different methods for how to stop foreclosure in Jacksonville, FL and in other Sunshine State cities.
This resource on JaxHomeOffer.com is meant to supply information, and is no substitute for legal advice from a qualified attorney.
Ways Foreclosure Can Be Avoided
Not every loan has the same terms attached to it. Lending institutions regularly modify the steps to undertake before and after a foreclosure is initiated. Depending on the type of your loan, there are public and private solutions to research.
Common loans are divided into two types:
2. Traditional/Private Lender
Government Programs for Homeowners
The Federal Housing and Urban Development corporation does have assistance available if a property owner has fallen behind in payments. Credit counseling is usually required during the beginning stages of a pre-foreclosure case.
Programs such as Home Affordable Modification Program (HAMP) and Hardest-Hit program by the FHFC in Florida are government programs. Eligibility is required for any sponsored program although not every property owner will meet the qualification requirements.
In many cases, a real estate investor who carries a mortgage on a property would not qualify for relief due to the strict residency requirements. Living inside of the home for a specific amount of time is a requirement for a homeowner to be eligible for an assistance program.
Negotiating with Lending Companies
It is too easy to disregard a written notice that comes in the mail about a pending foreclosure action. Owners of homes who have lost jobs or main sources of income can be scared to face reality when bills begin to pile up.
Some lending companies have organized programs that are generally available to Duval County homeowners. The truth is that the legal process to start and finish a foreclosure is a long and expensive one. Mortgage companies and other underwriters try their best to avoid a FL foreclosure case.
A traditional lender might be willing to consider one of the following options to help you when you are behind on payments:
1. Loan Forbearance
This type of relief is directly negotiated by a property owner with the owner of a mortgage. A specific time period is arranged to allow for repayment of past due money without fear of further penalties.
2. Principal Reduction
The current market value of a home might have decreased since a homeowner made a purchase. In this situation, a property owner now owes more on the mortgage than a home is actually worth. By reducing the principal of the loan, new payments can be worked out.
3. Skip a Payment
Some lending institutions may allow a temporary period where payments can be missed without accruing any additional interest or late fees. The overdue payments are usually added to the end of the mortgage, and could very well increase the time period needed to pay off the outstanding loan.
4. Interest Rate Reduction
Interest rates are locked into a majority of loans for the duration of homeownership. A higher rate typically means monthly payments will cost more. By reducing the interest rate temporarily or permanently, a lender can work out a new payment arrangement that meets the financial needs of a borrower.
5. Loan Modification
No terms of a mortgage can be modified without the consent of all contracted parties. The owner of a mortgage could agree to modify the initial terms to be more flexible to a property owner struggling to pay monthly housing payments. This type of relief is not always available.
Catching up with overdue payments will usually require a number of months to complete. In some cases, a lender might be willing to offer a reinstatement of a loan back to normal terms if a lump sum payment is guaranteed by a specific date and time. Things like an upcoming tax return or an annuity payment could help with reinstatement.
7. Died in Lieu of Foreclosure
When payments are severely behind, there might not be a benefit as a homeowner to keep a home. Giving back a property to a lender free and clear is one solution to consider. The process, known as died in lieu of foreclosure, gives a lender the rights to the property without further payments from a property owner.
8. Mortgage Assumption
Most legal documents pertaining to home ownership have specific language regarding assumption of a mortgage. In multiple states, lenders prohibit a homeowner from enacting an assumption clause. This solution means that a qualified third-party will take over the mortgage and continue with regular payments. There are cases when a lender might agree to modify an agreement although these situations are very rare.
Fastest Foreclosure Solutions
It can and will take a long time for a loan servicer to agree to modify or construct a new loan to help a Duval County property owner to avoid a foreclosure. There are advantages that exist outside of the traditional process to completely avoid working with a bank or other financial institution.
If a lender will agree to a sale price, it can be beneficial to sell a home outright to a legitimate investor. Most adults who invest in properties already have lenders, attorneys and a team of professionals working with them. A short sale can be negotiated rather quickly when all parties are in agreement.
The company that owns a mortgage usually requires a homeowner to be late by 90 days or more. Someone needs to be in default status in order for a short sale request to be valid.
A second mortgage can complicate the process, but a buyer who is experienced knows how to handle this type of situation. Regardless of what condition a property is in, a home can be resold to someone else if the process is conducted timely and professionally.
To get an offer on a property that is in pre-foreclosure or full-blown foreclosure, you can get a guaranteed offer right on this website in less than two business days.