Loan modification and Foreclosure site

Here is a general timeline of what to expect during a foreclosure [It is important to remember that every situation is different]:

• You get a notice of default on your mortgage. This is basically your lender telling you that you have missed payment[s]. If you can make these payments, or pay whatever you have do, you’ll be fine, however if you do not have the money or resources to pay your late mortgage payments, the foreclosure cycle continues.
• Next a “deed of trust” is drawn up. This is a document that, in essence, transfers your home’s legal status. You will no longer be the legal owner of the home, the trustee will be.
• Later, a “publication period” begins. Here the lender will contact your counties registrar and attempt to make it known that your house will be entering the auction period.
• Finally, your home enters the auction period. The lender is trying to sell the home at a foreclosure auction for as much as it possibly can so it can recover part of its losses at least.

As you can see the foreclosure process is not pretty in the least bit. You are best off doing everything you possibly can to avoid a foreclosure.

Unfortunately Florida is one of the worst states as far as foreclosures per home goes. There are a whopping 55 thousand foreclosures in Florida currently and another 120 thousand more homes that are facing pre-foreclosure. That’s over 150 thousand families that will be experiencing a huge change in their way of living, even if they do manage to avoid foreclosure.

The main reason that so many homes are facing foreclosure in Florida is the troubled real estate market. Property values have been falling everywhere the past 2-3 years, but Florida has been one of the states that has been hit the hardest. Home values rose and rose and rose, each year, between 15-30% annually. That’s simply irrational and unhealthy behavior.

If you are looking for foreclosure help in Florida, you are in luck. Since Florida has so many homes facing foreclosure, the industry is fairly big. Meaning there will be dozens of qualified agency’s, attorney’s, and non profit’s out their that should be willing to help you out with your situation.

You do not have to be a statistic, you can help your situation, you can help yourself.

Whenever you are in any legal preceding, it is important to know your rights, foreclosures are no exception. When you are in a foreclosure, there a lot of people that are going to try to take advantage of you. Banks are going to try to give you a hard time with your situation so that they come out with the best deal possible for themselves. Many foreclosure attorney’s and services are going to charge you thousands of dollars for nothing… The list goes on and on.

The best way to protect yourself is to know your rights and to use common sense.

Your rights depend on where you live for the most part. Most, but not all states are going to try to give you, the homeowner, the benefit of the doubt in most legal situations.

You are going to always have a few basic rights however:

1. A bank cannot foreclose on your home without cause or without notifying you in advance.
2. You always have the right to an attorney. A foreclosure attorney could help you with all of the legal obstacles you will be facing.
3. You should always be given the option to save your home from foreclosure if you have the money or resources to do so.

There are no real foreclosure rules. It all depends on your particular situation. Who is you lender? How many mortgage payments have you missed? Are you deeply in debt? Have you taken every opportunity possible to try to contact your lender and pay your mortgage? These are all questions to consider.

Most importantly, the rules you face depends on where you live. Florida will have different foreclosure laws than Washington will have. And rightly so.

The rules you will want to look out for are the following:

1. What is the timeline for a foreclosure? Many states will give you 60, 90, or even 120 days to get the whole situation figured out.
2. Who has the upper hand in your state? The homeowner or lender? Most states try to look after the homeowner in most situations, but the rules are not always clear cut.
3. What are the rules regarding foreclosure auctions and selling your home?

Remember that no one involved in the situation you are in wants your home to undergo foreclosure. This is bad for the homeowner, lender, and the state. No state wants a statistic that reads: “Foreclosures rise 40% year over year, now 3rd in the nation in foreclosures per home”. Just make sure to do your part when it comes to avoiding foreclosures and informing yourself an everything will work out.

One of the main reasons why foreclosures are rising is that homeowners do not understand the repercussions of foreclosure.

1. You obviously lose your home if it gets foreclosed upon.
2. Your credit rating will likely take a big hit. This might not sound like a big deal, but it is hard to do anything these days without credit. What bank would lend money to someone who’s already been through a foreclosure?
3. Foreclosure’s are mentally taxing. You have to go through paperwork, negotiations, pleads… It will not be a fun couple of months for sure. Not to mention you’ll have to move. If you have  a family the situation will be even worse.

The best way to avoid these nasty foreclosure repercussions is to avoid foreclosures in the first place. If you are having problems making your monthly mortgage payments talk to your lender immediately. See if you can work something out with them.

Also, consider loan modifications. They are not easy and obviously come with a cost, but it is well worth it if you get to keep your home.