Avoiding foreclosure by working with lenders

Homeowners across Florida can find themselves at risk of losing their home in foreclosure if they are facing financial troubles. Keeping up with mortgage payments can fall by the wayside when a person is dealing with divorce, serious medical issues or the loss of a job. 

However, foreclosure is not inevitable. There are ways to protect your home and/or limit the financial repercussions of delinquency. But in order to do so, it is crucial that you act quickly. If you are anticipating or already experiencing problems paying your mortgage, you may be able to work with you lender to negotiate a compromise.

As discussed in this HGTV article, there are many ways that homeowners and lenders can work together to avoid foreclosure. It may involve adjusting interest rates by changing from adjusted to fix or by extending introductory rates. You may be able to extend the terms of your loan and defer payments. There is also the possibility that the lender will allow you temporarily stop payments or modify the terms of a loan to reduce individual payments.

Unfortunately, coming to these resolutions is not easy. Lenders may not be interested in compromising with you or there may be little or no financial incentive for them to do so. However, you can improve your situation by acting quickly, being able to show that you have done everything you can to address the situation and demonstrating that you will be able to get back on track financially in the near future.

While it is entirely possible to negotiate with a lender to avoid foreclosure, the fact is that it can also be intimidating and complicated. Thankfully, you don’t have to go through this process alone. You can consult a lawyer who can help you work with your lenders to find a compromise and/or pursue other options for handling or preventing foreclosure proceedings.