NAR Releases Advice for Those in Adjustable Rate Florida Home Loan Trouble

With foreclosures rising across the state and nation, the National Association of Realtors recently released a press released. It focused on the borrowers most likely to default on their Florida home loans: those with adjustable-rate mortgages.

Here are pieces of advice from it:

Contact the lender: Homeowners facing foreclosure often make the mistake of avoiding the lender, which is exactly the wrong thing to do. Contact the lender early, explain your situation, and find out your options.

Contact family members or friends: Ask for help. If you were in a position to assist a family member or friend who was facing a similar situation, how would you feel if they didn’t ask you for help?
Reinstate the mortgage: If you can come up with enough cash to bring Florida mortgage payments up to date, the lender may agree to hold off on foreclosure proceedings.

Negotiate a forbearance: Your Florida home loan officer may be willing to restructure your payments to help you get back on track after a temporary financial setback.

Refinance out of foreclosure: With a good credit history, you may be able to consolidate your debt with a loan that requires a total monthly payment of less than you’re paying on all your other loans put together. This is why you should speak to our brokers today about Florida mortgage refinancing.

Sell your home: If you owe less on the home than what you can sell it for, sell the home and find more affordable accommodations. Selling the home is what 90 percent of those who are facing foreclosure really need to do, but unless you act quickly, you may run out of time.

Negotiate a short sale: Lenders typically want to avoid foreclosing because it costs them money. You may be able to convince the lender to accept less than the total amount owed on the Florida mortgage loan.

Giving a deed in lieu of foreclosure: If you owe much more on a house than what you can sell it for, you may be able to offer the lender the deed in exchange for them not foreclosing on you. You lose the house but retain your credit rating.

File for bankruptcy: Bankruptcy is rarely the best choice. In most cases, it simply buys you some time, but is often the most costly option.

Do nothing: Doing nothing is, by far, the worst option. It ultimately leads to losing your home, any equity you may have built up in that home, and compromising your ability to qualify for future loans.