Foreclosure defines a legal procedure that gives lenders the right to recover the balance of loans from the borrowers who have stopped making payments. Evidently, the instability of the housing market turns foreclosure into a frightening reality for many people. However, most of the homeowners facing the threat of foreclosure will succeed to keep their homes. That’s because the attorneys who specialize in foreclosure defense are able to help these people deal with almost any foreclosure-related issue. With so many foreclosures in Miami, the only thing you have to do to get legal assistance is to look online for a local Miami real estate attorney.
Defending Yourself Against Foreclosure
A lender may initiate foreclosure at a time specified in the mortgage documents after the borrower has defaulted on their loan. In this situation, the borrower has three options:
1. you can represent yourself in court 2. you can seek legal advice, but develop a defense strategy by yourself 3. you can hire a local Miami real estate attorney specializing in real estate litigation Although you can represent yourself in court, you should always opt for the third variant because it’s the safest one. An experienced real estate attorney knows how to handle different foreclosure proceedings. Furthermore, this professional can develop new payment plans and even help you sell your property for a good price before specific foreclosure proceedings begin. A local real estate attorney in Miami may also advise you to file for Chapter 13 bankruptcy – a legal procedure that prevents properties from being foreclosed upon. If you don’t want to approach a real estate attorney, it’s essential to review and understand your mortgage; check the laws that can protect you from foreclosure, particularly Chapter 702, section 45.301 and Florida statutes; get a copy of your mortgage documents; try to find violations of the Federal Truth in Lending Act; gather records; and identify deadlines. How to Avoid Foreclosure Proceedings Escaping foreclosure is possible if you: Contact Your Lender: If you realize that your financial circumstances prevent you from paying your mortgage, you should contact your lender. Recent surveys have shown that about 50 percent of consumers who have missed payments never contact their lenders. Considering that most mortgage companies want their money and not some properties they may never sell, your lender may be willing to help you out. However, talk to a local Miami real estate attorney before calling your lender. Understand Specific Terms: Before contacting a real estate attorney in Miami, check specific terms, such as forbearance – which happens when a lender offers a temporary suspension or deduction of mortgage payments to allow borrowers to get back on their feet; reinstatement – which takes place when a lender agrees to let borrowers pay the total amount they are behind, by a certain date; and loan modification – which permanently changes the original terms and conditions of a loan, making payments more affordable.
If your lender decides that you can’t keep your home, there are a few more things you can do to avoid foreclosure.
- Refinancing: You can ask a local Miami real estate attorney to check whether you should refinance your loan or opt for another strategy
- Assumption: This procedure allows a buyer to purchase your property and take over your debt
- Deed-in-lieu: If you decide to transfer the title of your property to your lender, your mortgage will be cancelled
- Short Payoff: If your home’s value has fallen over the years, your lender may agree to a short payoff and cancel the rest of your mortgage.
Since foreclosure procedures are quite complicated, it is advisable to contact an experienced real estate attorney who can help you avoid foreclosure. They may at least be able to help avoid certain complications and help to secure your financial future.
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