FAQs
for Homeowners Facing Foreclosure in Florida
Answer: Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. In Florida, the process is judicial, meaning it goes through the court system. The lender files a lawsuit, and if the court rules in favor of the lender, the property is sold at auction.
Answer: The foreclosure process in Florida can take anywhere from several months to over a year, depending on the court’s schedule, the lender’s actions, and whether the homeowner contests the foreclosure. On average, it takes about 6-12 months.
Answer: Options to stop foreclosure include reinstating the loan by paying the overdue amount, negotiating a loan modification, pursuing a short sale, filing for bankruptcy, or applying for government assistance programs.
Answer: Yes, you can sell your home before the foreclosure is finalized. This can be done through a regular sale if you have enough equity or through a short sale if the sale price is less than the amount owed on the mortgage.
Answer: A loan modification involves changing the terms of your mortgage to make the payments more affordable. This can include reducing the interest rate, extending the loan term, or adding missed payments to the loan balance. It helps by making your monthly payments more manageable.
Answer: A short sale occurs when you sell your home for less than the outstanding mortgage balance, and the lender agrees to accept the reduced amount. It does affect your credit, but typically less severely than a foreclosure.
Answer: Filing for bankruptcy can temporarily halt the foreclosure process due to the automatic stay, which stops all collection activities. Chapter 13 bankruptcy allows you to reorganize your debts and catch up on missed mortgage payments over time.
Answer: Programs such as the Home Affordable Modification Program (HAMP), the Home Affordable Refinance Program (HARP), and the Hardest Hit Fund can provide financial assistance, loan modifications, or refinancing options. Please check for availability.
Answer: Hiring a foreclosure defense lawyer can be beneficial. They can negotiate with your lender, represent you in court, explore all legal options to delay or stop the foreclosure, and provide guidance on the best course of action based on your situation.
Answer: Foreclosure significantly impacts your credit score, typically dropping it by 200-300 points. It remains on your credit report for seven years, making it challenging to obtain new credit or a mortgage. However, rebuilding your credit and demonstrating financial responsibility over time can improve your chances of buying a home in the future.