When you fail to make several of your mortgage payments, foreclosure may occur. Foreclosure is a legal action that a lender can use to take over a house. If this happens, you have to move out of the house, and the worst part is that if your home is valued for less than the total amount you owe a deficiency judgment can be pursued, which means that the lender can still make a motion to ask the court for a judgment against you for the difference.
What is less encouraging is that a deficiency judgment can remain in your credit report for seven years in Florida. If, during those seven years, it remains unpaid, the lender can get it renewed for another seven years. Both foreclosure and deficiency judgment can affect your ability to qualify for credit in the future, making it even harder to get back on your feet.
That’s why if you are at risk of foreclosure, you need to take it seriously. We have collected five tips to help you avoid foreclosure:
- Talk to your lender as soon as you know you have a problem: No lender wants to take over the houses, they want to get paid. Many of them offer different options to help borrowers through tough financial moments.
- Don’t ignore the problem: The more you wait, the more difficult it will be to get out of the problem, and the more payments you will keep falling behind.
- Investigate the foreclosure prevention options: the U.S. Department of Housing & Urban Development offers different options through free counseling all over the United States. If you are not too behind your payments, you can get in contact with them. By law, they have a list of options that can help you.
- Plan out your spending: Check what the things you can get rid of, and prioritize your expenses, and do as much as possible to pay for the back payments you have are.
- Sell your assets: Sell anything of value that can help you pay, like jewelry and car, or as a last resource, even your house.
Selling your house can be hard, but it will be much easier to get back on your feet than having a record on your credit. Perpetual Motion Properties is an excellent solution in Florida when you are at risk of foreclosure. We have helped many Florida residents with their mortgage problems; we can buy your house for a fair price, enough to payout your loan.