Foreclosure Prevention Measures In Jacksonville and the rest of FL
Local homeowners in Florida who face financial challenges may find themselves dealing with the foreclosure of their home. But is it possible to stop foreclosure in Jacksonville?
Foreclosure occurs when a mortgage loan doesn’t get paid back. The bank begins the process of taking ownership of the mortgaged property to recoup its losses.
Foreclosure proceedings can be extremely stressful, and emotionally damaging. If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few ways to prevent foreclosure in Jacksonville that you can take to help stop real estate foreclosure.
Ways to stop foreclosure in Jacksonville
These foreclosure prevention measures might not all work in your situation. But we’re telling you about them so you can make the decision for yourself:
- Sell your property. The quickest and easiest way to end the foreclosure process is to pay off your mortgage by selling your property. However, keep in mind that you will need to earn enough from the sale to pay off the mortgage in full, including any prepayment penalties, or you will need to pay the difference out of pocket.
- Work out a deal with your bank. Sit down with a mortgage or foreclosure specialist and talk to them about changing the structure of your mortgage. They may be able to lower your mortgage payments by extending the loan period. This is called a mortgage modification or loan modification. Just make sure that the modified terms work for you — you don’t want to end up repeating the process.
- Request a short sale. A short sale is a situation in which a property is worth less than is owed, but the owner needs to sell. In a short sale you will negotiate with your lender to approve a sales price that is lower than the amount owed. If the short sale is approved the home is sold and the mortgage is satisfied at a loss. However, while short-sales don’t affect your credit score like foreclosure, they do impact your ability to qualify for loans in the future. Be sure to talk to a foreclosure attorney for more information on the viability of this option.
- Give your deed in lieu of foreclosure. In a deed in lieu of foreclosure you will transfer title to the bank in exchange for an agreement not to put you through foreclosure, and to release your mortgage balance. This will often only work if your house is worth approximately the amount owing on the mortgage, or more than the amount of the mortgage. If not, the bank may pursue the difference.
- File for bankruptcy. In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process must stop so it’s still a foreclosure prevention measure.
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the house then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money.
Facing foreclosure and thinking of selling your FL house?
We buy houses in Jacksonville, FL or any other part of FL for cash. We would love to see if we can help you during your short sale. Contact us by filling out the form on this page. we’ll provide you with a no obligation cash offer. We are able to close on houses fast, ensuring you have time to avoid foreclosure.