If you are unable to make your mortgage payments and fall a few months behind, your bank can file for foreclosure. When you bank files foreclosure, they take possession of your home with the intent to sell the property in order to get back the money they lent you for the purchase. In today's housing market, foreclosure rates are very high which means that banks are having a difficult time selling properties to make their money back, which is good for you. If you have missed a few mortgage payments and are at risk for foreclosure you still have options.
Your first step should be to contact Miami foreclosure attorneys who can help you decide what options are best for you. Although you may want to save your home, every situation is different and staying in your home may not be your best option. If you are out of work or are now making significantly less than you were when you bought the home, keeping the house may not be best for you. A foreclosure attorney in Miami can help you look at your finances and figure out what is best for you and your family. If you do want to keep your home, you have several tools available to you.
Short sales in Miami might be an option if you are not able to afford your home but still want to avoid foreclosure. In a short sale, you will ask your bank for permission to sell the home for less than what you owe on it. If your bank agrees, then you will sell your home at the best price you can get and the bank will forgive the remainder of the mortgage balance. If you cannot afford your home, this is a great option for everyone involved. You get to get out of a mortgage that you cannot afford and avoid having a foreclosure on your credit, your bank avoids having to file for foreclosure and then try to sell the home, and the buyer gets a great deal on a home. Your bank does have to agree to this set up, so you will need to hire a lawyer and contact your mortgage company if you think a short sale might save you from foreclosure.
Loan modification in Miami is another tool that will let you keep your home and stay in it. When you borrow money from a mortgage company, you enter into a contract with the bank. This contract outlines terms of the mortgage such as interest rate, monthly payments and the length of time the loan will be paid back over. Any change to this contract is called a loan modification. A loan modification may result in lower interest rate, forbearance (which will allow you to skip a payment or two with no consequences) or a longer payment period. How your loan is modified will depend upon your station and what your bank is willing to do.