Sep 07 2007
Foreclosure? Talk to your mortgage lender and keep your Florida home.
There are many reasons Florida foreclosures are at an all time high. One major problem is the negative amortization loans with multiple payment options. Rates are resetting or recasting and payments are more than doubling. Increases in homeowners insurance and property taxes are also forcing Florida homeowners into higher payments. Even those who took fixed rate mortgages; thinking their mortgage payment would be fixed; have to deal with higher monthly payments. Other reasons stem from employment loss or loss of hours, death of a family member, or divorce. There are other alternatives to consider before giving up and losing your home through foreclosure.
Talk to your Lender as soon as you think you are going to get behind. Federal and State banking regulators last week called on mortgage lenders to help struggling homeowners with their mortgages to avoid foreclosure. There are options to consider such as forbearance or reinstatement. Forbearance is where your Lender may reduce or temporarily suspend your mortgage payments and allow you to reinstate the amount owed at a later date. Or perhaps a simple negotiated repayment plan that would allow you to add a portion of the past due payments to your monthly payment until satisfied.
Of course your Lender also has the ability to modify your mortgage altogether. Your adjustable mortgage can be changed to a secure fixed rate loan. The amount past due can be added to your principal amount.  Or maybe adding additional years to the term to reduce the amortized monthly payment and/or recapture the past due amount.
There is light at the end of the tunnel so please call your current Lender for assistance. Should you have any additional questions regarding how to avoid foreclosure; don’t hesitate to call your mortgage professional for answers.