Are You Behind on Your Mortgage? Here’s How to Handle It
When someone signs a mortgage, they are optimistic that they can make it. At the end of all the payments, they will have their own space, free and clear of debt. However, things don’t always go according to plan. For people who are behind on their mortgage – especially with threats of foreclosure, it can be a terrifying experience. Many homeowners who fall behind benefit from working with professionals to resolve their mortgage issues, often describing it as an amazing experience. To help you navigate your way through the process, here’s what you should do when you’re behind on your mortgage payment, according to a Florida foreclosure attorney.
Understanding Your Mortgage Situation
Understanding your mortgage situation is crucial in navigating the complex world of homeownership. If you’re struggling to make mortgage payments, it’s essential to know your mortgage loan options. A mortgage lender can take legal action against you if you fall behind on your mortgage payments, even if you’ve filed for bankruptcy. In fact, the bank doesn’t need permission to move forward with foreclosure proceedings after bankruptcy. To avoid foreclosure, it’s crucial to stay current on your mortgage payments and communicate with your lender. If you’re experiencing financial difficulties, consider seeking the help of a loan officer or a non-profit organization that provides homebuyer education classes and counseling services.
Communicating with Your Mortgage Lender
Communicating with your mortgage lender is crucial to avoid foreclosure and bankruptcy. If you’re struggling to make mortgage payments, it’s essential to reach out to your lender as soon as possible. They may be able to offer temporary payment assistance loans or modify your loan terms to make payments more manageable.
When communicating with your lender, be honest about your financial situation and provide detailed information about your income, expenses, and assets. This transparency will help them understand your situation and work with you to find a solution that fits your needs.
It’s also important to keep records of all communication with your lender, including dates, times, and details of conversations. This can help prevent misunderstandings and ensure that you’re getting the assistance you need. By maintaining open lines of communication, you can explore options to keep your home and avoid the stress of foreclosure.
Florida Foreclosure Attorney Reveals the Steps to Take if You’re Behind on Your Mortgage
Negotiate the Terms
There are a couple of ways to do this, and which one you choose should reflect your current and future financial situation. If your problem with payment has more to do with timing, then talk to your bank and negotiate the terms of your mortgages, such as paying the full amount due plus penalties at a certain date, or ask them if they could modify the terms of payment or the interest rate.
Repayment Plan
You can ask your loan servicer to provide valuable service by helping you come up with a repayment plan that’s doable for your monthly budget. This is perfect if you’ve only incurred a few months worth of late payments, and you’re willing to shoulder the amount staggered over the next months.
Forbearance with Your Mortgage Lender
Another approach if you have a temporarily lower income, rendering you unable to pay, is forbearance. This lets you suspend or reduce your payments for as long as you are still in that situation or until your bank allows it. Once that period lapses, you will go back to paying your regular mortgage and a lump sum to cover the months that you were not paying.
Sell the property
Heartbreaking as it sounds, selling your home may be the only viable option unless you contact a foreclosure attorney. In some situations, banks would even settle for how much you sell the house for, instead of how much you still owe them. Others would require you to pay the remaining balance if the selling price of the house is lower than the total amount of your debt.
Managing Foreclosure and Bankruptcy
If you’re facing foreclosure or bankruptcy, it’s essential to seek professional help. A loan officer or financial advisor can help you understand your options and develop a plan to manage your debt effectively.
In Tampa, the City’s Housing and Community Development Division (HCD) offers resources and services to help homeowners avoid foreclosure. They provide homebuyer education classes, counseling, and assistance with mortgage payments. These programs are designed to help you navigate the complexities of homeownership and find solutions that work for your financial situation.
If you’re considering bankruptcy, it’s crucial to understand the process and how it will affect your mortgage. Chapter 7 bankruptcy may not eliminate all financial problems, while Chapter 13 bankruptcy can help you keep your home by restructuring your debt. Working with a qualified attorney can ensure you make informed decisions and achieve the best possible outcome for your situation.
Government Assistance Programs
Government assistance programs can provide relief to homeowners struggling to make mortgage payments. These programs can help you understand the mortgage process and provide guidance on how to navigate the complex world of homeownership.
Non-Profit and Community Resources
Non-profit and community resources can provide valuable assistance to homeowners struggling to make mortgage payments. Organizations like Solita’s House offer homebuyer education classes, one-on-one pre-purchase counseling, and foreclosure intervention services. These organizations can help you understand the mortgage process, provide guidance on how to navigate the complex world of homeownership, and offer access to affordable capital through consumer small dollar loans and down payment assistance loans. Additionally, community resources like the City of Tampa’s Housing and Community Development Division can provide access to mortgage assistance dollars and affordable mortgage options.
Michael Ziegler is the managing partner of Ziegler Diamond Law, serving consumers throughout Florida. With a focus on consumer protection, Michael helps clients navigate bankruptcy, defend against debt collection lawsuits, and address credit reporting errors. Known for his strategic approach and dedication to empowering individuals to regain financial control, Michael also chairs the Clearwater Bar Association’s Small Firm section. Outside the office, he enjoys camping with his family and pursuing real estate ventures.
Taking Control of Your Finances
Taking control of your finances is key to avoiding foreclosure and bankruptcy. Start by creating a budget that accounts for all your income and expenses. Make sure to prioritize your mortgage payments and other essential expenses to maintain financial stability.
Consider working with a financial advisor or credit counselor to develop a plan to manage your debt. They can help you identify areas where you can cut back on expenses and allocate more funds towards your mortgage payments. This proactive approach can make a significant difference in your financial health.
In Tampa, organizations like Solita’s House offer financial literacy programs and counseling to help individuals achieve financial stability and wealth. They provide access to affordable capital through consumer small dollar loans, down payment assistance loans, and a matched savings program. By taking control of your finances and seeking help when needed, you can avoid foreclosure and bankruptcy and achieve your dream of homeownership.
