It Is Possible to Avoid Foreclosure in Florida - By: Spiro Komninos

Spiro Komninos is a real estate lawyer in Tampa, Florida with the Komninos Law Group. According to him, when your outstanding mortgage is more than you can afford, foreclosure doesn¡¯t have to be your only option. In fact, he says, there are a few very plausible alternatives that you and your attorney should consider.

As a homeowner, you may be facing the harsh reality that you can no longer afford the dream home you purchased a few years ago when the housing market seemed like a safe bet and loans were easily approved. If you¡¯re concerned that your home may soon fall victim to foreclosure, or your lenders have already begun the process, then you need to take action as soon as possible.

In Florida, it is possible to avoid foreclosure through a short sale, a loan modification, or a deed in lieu of foreclosure, all of which I would explain here:

A Short Sale
If your home is currently worth far less than the amount that you still owe your lender, then you may be able to negotiate a short sale. This means that the home is sold at the current market value and any money made from the sale of the home goes directly to the lender to pay off the mortgage. Even though the lender may be taking a loss, it is sometimes easier than moving forward with lawsuits.

A Loan Modification
A loan modification occurs when you are able to negotiate with the lender in an attempt to secure a lower principal and interest rate. Generally, this allows the homeowner to pay off the amount owed on a mortgage over a longer period of time, thus making monthly payments more manageable. And, once a homeowner is able to get his payments under control, he will no longer have to worry about succumbing to foreclosure and losing his home.

On the other hand, if you are so far in debt that it is unreasonable to think that you are ever going to be able to rise above your debts, and that your mortgage balance will always be greater than the equity in your home, a loan modification probably won¡¯t be your best option.

Deed in Lieu of Foreclosure
In this instance, you are handing over the keys to your home to the lender, and in exchange, the lender will not file for foreclosure. While you will still lose your home, there are no law suits involved and you prevent having the details of a foreclosure displayed on your permanent record.

In Florida, the lender legally has five years to come after you for any money that is still owed from your mortgage. It¡¯s a very real and scary realization that too many homeowners face when it is too late. That is why it is also important to have your lawyer working on your behalf to avoid a future deficiency judgment in the midst of planning to avoid foreclosure. If your lawyer properly negotiates with your lenders, then it is possible that the lender will agree to release you of any further debts that remain after a short sale or deed in lieu of foreclosure.

It is best that you contact an experienced attorney in your area when dealing with a looming foreclosure, since every homeowner is in a completely unique situation. Not only will your lawyer discuss all of the particular details of your case with you, but he can handle all of the necessary negotiations to ensure that the final outcome represents your best interests.

This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.

About the Author

Spiro Komninos is a writer for Yodle Law Marketing, a business directory and online advertising company. Find alawyer or more http://local.yodle.com/articles/topics/legal-services/">lawyers articles at Yodle Consumer Guide.

Article Directory Source: http://www.articlerich.com/profile/Spiro-Komninos/146556

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