Warnings Signs of Foreclosure on Your Florida Home Mortgage Loan

In the face of an uptick in foreclosure filings across the state, Law & Associates, a firm that counsels those in financial peril, has the following message: A good defense is an aggressive offense.

“Being on the offensive and being aware of the warning signs of foreclose gives every homeowner an added edge in vulnerable times,” said Richard Boyle of the company.

With that in mind, consider these warning signs of foreclosure on your Florida home mortgage. Take steps to be wary and avoid defaults in the future.

• Do you have a piggyback Florida home loan, hedging on the fact that property values will increase? These can be dangerous.

“Based on increasing property values, exotic loans such as interest-only loans and adjustable-rate [Florida mortgages] provide borrowers with a lower monthly payment for a short period of time can create big problems,” says Dean Baker, co-director at the Center for Economic and Policy Research.

• Do you owe more than your house is worth? The risk of foreclosures rises when borrowers take out loans in excess of 80% of a home’s purchase price. Statistics suggest that many homebuyers are stretching their budgets well beyond their means.

These buyers possess such minuscule equity in their homes that if prices fall, they could owe more on their mortgage than their homes are worth. Sound familiar?

• Are you behind on your Florida mortgage loan payments? Falling behind for any reason is something to watch our for. Be wary of sudden decreases in income due to the loss of spouse or job, poor financial management which contributes to nonpayment of utility bills, service shutoffs and liens against the property; failure to perform necessary repairs and maintenance which make the property uninhabitable; second mortgage scams which make impossible demands on the homeowner’s limited resources.

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