How to Avoid Florida Mortgage Trouble

It can be a dangerous time for owners and/or would-be borrowers in the Florida housing market. Lenders are tightening standards and an increased numbers of individuals are falling into foreclosure.

Do you wish to avoid such a fate? If so, here are some tips to consider:

• Keep a close eye on your mortgage and your finances. Be sure you know when your bills are due so you can pay them on time.

• If you find you’re having trouble making your payments, don’t be embarrassed to talk to your lender. They can help you find out if you have the most appropriate mortgage for your situation. Plus, it’s less expensive for them to help you than it is for them to foreclose your home and have to sell it.

• If you have an adjustable rate mortgage (ARM):

- Know when the rate will reset (adjust) and how high it will go so you can be prepared for any increases in your mortgage payment.

- Look into Florida mortgage refinancing to a fixed-rate mortgage. Interest rates are still low and will offer long-term stability and predictability when it comes to budgeting your finances every month.

• If selling your home is the only option, you could sell faster if you can offer some help to the buyer.

- Offer to pay some or all of their closing costs. This may include paying points to help the buyer get a lower interest rate on their financing.

- Consider offering seller concessions (monetary allowance) for landscaping, interior design, etc.

• If you have to, make your Florida mortgage payment late rather than not making it at all. Don’t wait until you’re 30, 60, or 90 days late and facing foreclosure.

If you’re having problems making your mortgage payments or may be facing foreclosure, contact your lender immediately. Don’t wait until you’re actually in trouble to do something about it.

SOURCE: Quicken Loans