Tallahassee Homeowners Facing Foreclosure

If you are a Tallahassee homeowner facing the threat of foreclosure, there are some options for you to consider before the foreclosure becomes a reality. Financial options for saving your home from a Florida foreclosure include:

• Re-instatement – You can catch up on payments until the set date of the court house sale to stop your home from being a Tallahassee foreclosure property. Payment would require all months you are behind in payments, late fees and court costs.
• Forbearance (or Repayment) – a repayment plan can be negotiated with your mortgage holder so you can catch up on all payments, including court costs and all late fees. Smaller payments are made over time instead of one lump sum.
• Refinance – If interest rates fall lower than your present mortgage rate (and your credit has not been too badly damaged), you can refinance to a lower interest rate, which will reduce your total payment each month.
• Short –Refi – (Also known as the Government’s HOPE Program) This process refinances the home with a reduction in the principal balance and often the interest rate as well. This is a somewhat new occurrence that some mortgage companies and lenders are trying in order to avoid so many foreclosures in Tallahassee, FL.
• Mortgage Modification – Banks do not want to be in the Tallahassee REO business, so they are doing a lot of mortgage modifications. After foreclosure, the banks are responsible for paying the taxes, insurance, utilities, yard and house maintenance, asset managers, real estate agents, attorneys and property maintenance until it sells. You should call your mortgage company because they may be willing to reduce your monthly payment to something more affordable for you.

Other Options to Help Avoid Foreclosures in Tallahassee, Florida

Besides financial options such as refinancing and mortgage modification, there are other alternatives to help save your home from being foreclosed, which include:

• Renting – If you want to keep your Florida home, renting the home to someone else can be an option. The immediate need of making your mortgage payment can be solved, while giving you a good future investment. Your REALTOR can show you what comparable homes are currently renting for in the Tallahassee area.
• Selling – Instead of losing the equity you have already gained from your home, you can sell it before you get to the point of foreclosure. If you sell, it can also help you avoid ruining your credit and future financial standings. Fair market value can be determined with the help of your real estate agent. When you calculate your net proceeds after the sale make sure to first contact your mortgage company to get the payoff for all of your mortgages beforehand so the calculations are accurate. You can also consider a Tallahassee short sale, which is explained below.
• Deed in Lieu of Foreclosure – During this voluntary (“friendly”) foreclosure, the homeowner basically gives the deed back to the mortgage company. Doing this prevents the banks from having to go through a lengthy Florida foreclosure process. However, a Deed-in-Lieu as a foreclosure is still recorded on your credit report, with the same negative credit consequences as aforementioned. Although, because of your cooperation they may waive their rights to a deficiency judgment. You are still subject to being taxed and this solution only works in cases where there are no liens (or small ones) and only one mortgage on the potential Tallahassee foreclosure property. In rare instances, the first mortgage company may negotiate with the second mortgage company.
• Bankruptcy – In this instance, you must hire an attorney (for a fee) to file chapters, 7, 11 or 13, which takes all or a portion of your debt to the courts to be dismissed. A foreclosure is delayed when filing a bankruptcy, but you still end up with a bankruptcy and a foreclosure on your credit report. When you file bankruptcy all of your financial problems do not go away because creditors can still return for a deficiency judgment against you and you may have serious tax consequences as well.
• Short Sale – A Tallahassee short sale occurs when a property is sold for less than it is worth. The lender must agree to the short sale in Tallahassee, Florida and the homeowners must be in a distressed state, meaning they are behind in payments and the property is likely facing foreclosure. Homeowner must prove that mortgage payments cannot continue through a set of completed documents.

Special Circumstances for Foreclosures

If you are a member of the military, you have the following option:

• Service Members Civil Relief Act (SCRA) The SCRA, a bill that was signed into law (Public Law 108-189), provides certain protection to military personnel. Under the law, Service members are also provided other protections.

Who Should You Choose to Assist You?

You can contact any of the team of real estate experts at Coldwell Banker Hartung and Noblin, Inc in  Tallahassee and we can help explain these options so you can figure out what is best for you and your situation. Give us a click or call today to get started on saving your Tallahassee home from foreclosure.