In Florida, foreclosure processes start after the borrower is at least 90 days delinquent. If the property is seized by the lender, it is sold through an auction. If the full balance of the mortgage isn’t recovered, the borrower is responsible for the remaining balance owed to the lender. A foreclosure defense law attorney in Wellington FL offers advice about how to avoid foreclosure.
Predatory Lending Practices
When fighting foreclosure, property owners present their mortgage loan documents to an attorney. The attorney reviews the original mortgage loan contract and determines if the lender used any predatory lending practices. The practices indicate that the lender didn’t establish affordability for the mortgage. The unethical terms are designed to ensure a foreclosure and help lenders profit off the misfortune of consumers.
Requesting a Mortgage Modification
A mortgage modification offers a chance to change certain terms of the mortgage loan. The attorney calculates the total cost of the mortgage and compares it to the borrower’s income. The modification helps the consumer get a better interest rate, lower monthly payments, or eliminate a portion of the principal.
Requesting a Forbearance
A forbearance is available to borrowers who cannot pay their mortgage payments for a predetermined amount of time. Typically, the forbearance is presented to a borrower who has lost their job or suffered a sudden decrease in income. The attorney shows the consumer how to complete documents requesting the forbearance.
Filing for Bankruptcy
Filing for bankruptcy helps homeowners avoid foreclosure. The bankruptcy prevents the foreclosure from continuing and gives the owner a chance to catch up the payments. The chapter of bankruptcy defines how long the consumer is protected against the foreclosure. Chapter 13 bankruptcy lasts between three and five years. Chapter 7 bankruptcy can take up to six months.
In Florida, foreclosures allow lenders to take residential properties from borrowers who have defaulted on their mortgage. The lenders give the borrower a chance to recover their home after the seizure. The laws allow the borrower to purchase it through the auction. However, an attorney could help the borrower avoid the foreclosure altogether. Homeowners who need more advice contact a Foreclosure Defense Law Attorney in Wellington FL or visit our website for more information now.