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SHORT SALES & DEBT SETTLEMENT LAW FIRM
If you cannot pay your mortgage, you may have several debt settlement options available to you. Legal Counsel, PA is a mortgage debt settlement lawyer in Orlando, Florida who may be able to assist you with negotiating with your lender. What are your debt settlement options?
If you have fallen behind on your mortgage payments, consider calling your lender to see whether a mortgage modification, forbearance, or repayment plan is an option. Sometimes the loss of your home and foreclosure can be avoided when borrowers negotiate with the bank or with the lender. In cases where the bank won’t negotiate, it is sometimes to possible to sell the house on the real estate market, pay off the mortgage debt, and sometimes even have a little left over for you and your family. Unfortunately, this is not always the case. In a down real estate market, or in a situation where a house needs many repairs, the mortgage to the bank may sometimes exceed the value of the home. In this case, sometimes borrowers may be able to work with the bank to initiate a short sale on the home, to avoid foreclosure. With a short sale, the home is sold, the sale proceeds are used to pay the bank, and the bank forgives any mortgage amount that remains. This kind of debt settlement for a mortgage can only happen if the bank agrees to do it. If you are considering a short sale for your home, it can be helpful to have an Orlando short sale and debt settlement lawyer like Michele Diglio with Legal Counsel, PA on your side.
Delinquent Mortgage? Legal Counsel, PA, an Orlando Real Estate Short Sale Lawyer Can Help
When you get a foreclosure complaint from your lender, it’s all too easy to panic. But waiting to address the issue head-on can ruin your credit, and you’ll soon find the property sold out from under you. In Florida real estate law, there are many hoops a lender has to jump through before it can legally sell or auction off a delinquent property. It’s in the lender’s best interest to keep you in the house (and making the mortgage payments), even if the payments are lower and the terms are under a restructured loan.
But what if you can’t get the loan restructured, or you’d be better off walking away from the house? Even if you leave and the lender sells the home, your credit score will be destroyed from a foreclosure. A poor credit score can ruin your chances of buying a new house or even renting an apartment. But you can avoid these hardships if you agree to sell the property in a short sale. Here at Legal Counsel PA, our Orlando real estate short sale attorneys have been assisting distressed borrowers to get out from under onerous mortgage payments with short sales. Our Orlando real estate short sale law firm can help you protect your credit score and help you avoid paying unnecessary fees if your mortgage is delinquent.
What is a Short Sale and How Does it Work?
When you own a home where the value of the home on the real estate market is lower than the amount of money you owe to the bank, you may be able to work with the bank to sell the home in a short sale, to avoid foreclosure and to protect your credit. A home can end up underwater for many reasons. Sometimes real estate values in a neighborhood crash, and home owners find that the value of their home is less than what they paid and less than what they owe the bank. Other times, the cost of repairs for a home become so excessive that the amount of money that a borrowers owes the bank is more than what the home is worth. Orlando real estate short sales are beneficial to the lender and the borrower in many ways.
- The lender gets paid and the home gets sold to someone who can make the payments.
- The borrower gets to legally walk away from a property he or she doesn’t want to keep paying for, or can’t keep paying.
- The borrower’s credit score is protected in a short sale.
- The borrower does not have to pay any additional fines and liens.
In a short sale, the property owner, who is usually the lender, agrees to accept a payment from the borrower for less than the remaining debt that’s owed on the property. In exchange for this agreed upon amount (which is usually the amount for which the home will be sold), the lender must release any liens against the borrower. A short sale doesn’t mean that the borrower gets to walk away from a property without paying anything. But it does allow the property to be resold without the balance attached to the property as a lien. When selling a home in a short sale, the bank or lender must approve many aspects of the sale, including the sale price. Once the home is sold, the lender takes the proceeds and releases the borrower from further obligations to pay the mortgage. Once the house sells in a short sale, the borrower gets to move on with life and find a place to live that is more affordable for his or her financial situation.
A delinquent mortgage is a horrible thing to live with and can keep you up at night. It’s in your best interests to act quickly so you can restore your finances. The dedicated Orlando real estate lawyers at Legal Counsel, PA can help walk you through the short sale process and negotiate with the lender to let you sell the property in a short sale and release you from burdensome mortgage payments. Are you currently facing a foreclosure on your property? Don’t hesitate to contact us at Legal Counsel, PA today. All initial consultations are free, and we’ll be happy to help you during this difficult time.
Mortgage Debt Settlement Options in Orlando, Florida
A short sale may not be your only mortgage debt settlement option. A short sale should only be used in a case where the home’s value is lower than what you owe on the mortgage. If you have equity in your home, you may want to speak to your bank about other mortgage debt settlement options. What are they?
- Sell the Home. If you anticipate that you might fall behind on mortgage payments or if you have already missed a payment or two, but your home isn’t in foreclosure, you may be able to negotiate with the bank to slow down the foreclosure process if you plan to sell your home. You may be able to sell the home, pay off the mortgage, and even have some money remaining after the sale. Legal Counsel, PA is a mortgage debt settlement lawyer who may be able to negotiate with your lender or bank in Orlando, Florida before you put your home on the market. If you will miss mortgage payments while your home is on the market, it is important to talk to your lender, because your lender could begin the foreclosure process during your sale which could complicate your sale.
- Ask for a Loan Modification. If high interest rates or if the loss of a job, a disability, or a death in the family, or some other unexpected financial hardship is making it tough to pay your mortgage, your lender may be willing to work with you on a loan modification. By changing the interest rate or by extending the term of your mortgage (extending the time period in which you’ll repay the mortgage), you may be able to pay less each month. For families having difficulty making ends meet, this can mean the difference between losing your house and keeping it. If you are not sure about whether you qualify for a loan modification or have questions about how to apply, contact Legal Counsel, PA a loan modification lawyer in Orlando, Florida today.
- If you anticipate that your financial hardship is only going to be temporary, you may be able to request a forbearance. Individuals who have fallen ill, who have been disabled due to an accident, or those who have lost their job, but anticipate that they will find a new one soon may be able to successfully negotiate a forbearance with the lender. With a forbearance, your bank may permit you to miss some payments or permit you to pay less each month for a period of time. After the forbearance period ends, you may be required to cover the missed payments and fees, so it is important that after the forbearance period that you know you’ll have income or an insurance settlement coming in.
- Repayment Plan. Missed a few mortgage payments, but now that you can keep up each month, you find that your bank wants you to pay the missed payments in full? If you can’t both pay the missed payments and keep up with new bills, your bank may permit you to go on a repayment plan. With a repayment plan, you’ll pay the missed payments a little each month over a longer period of time, in addition to your mortgage payments.
- If you cannot pay your mortgage because other debts are getting in the way, a bankruptcy may be able to prevent your lender from foreclosing and may be able to restructure your debts in a way that can permit you to keep your home.
Facing financial hardship? Before you let your house go into foreclosure or choose a short sale, speak to the mortgage debt settlement lawyer in Orlando Florida at Legal Counsel, P.A. There may be other options available to you to prevent foreclosure. We may be able to help.