Tips to Avoid Foreclosures

Due to the downturn of the economy, Florida homeowners are finding it more and more difficult to pay for their mortgage, which is leading to a rise in fort myers foreclosure and naples foreclosure rates.  This threat can affect their primary residence, second home, or investment property of the homeowner.  Naples real estate attorney Kevin F. Jursinski offers the following tips to borrowers when faced with a mortgage foreclosure:

1) Continue to make monthly payments

It is very important that the borrower try their best to continue making monthly payments.  If this is not possible, they should contact their lender’s Loss Retention Department to see if there is a way to resolve the issue before going into default.

2) Alter the mortgage by refinance, forbearance or modification

Many lenders are willing to change your mortgage, but timing is the most important part of this step.  The response rate for a change in your mortgage can be very slow, meaning by the time they respond to your request, you are already in default.

3) Discontinue making payments

Borrowers with primary residences may be eligible for government assistance, such as the Obama Administration’s “Make Home Affordable” program.

4) Short Sale

In this scenario the net closing proceeds of the sale is not sufficient to payoff the full mortgage balance.  After the short sale of the property the lender determines what to do to with the remaining balance of the mortgage.  The lender can release the borrower from the loan completely, demand payment for the difference between the value of the sale and the balance of the mortgage, or negotiate a specified amount that is to be paid by the borrower.  Borrowers attempting a short sale should seek the assistance of Naples real estate attorneys and a qualified real estate agent who is familiar with the short sale process.

5) Inability to obtain refinance, forbearance or modification

At this point the borrower can address the foreclosure action issued by the lender.  It is recommended that the borrower consider a Motion to Compel Mediation, which will allows the borrower to demonstrate to court that they are making a proactive effort to contact the decision maker of the lender.  Through mediation a solution to the mortgage foreclosure may be made.  Either way the borrower should focus on minimizing damages to themselves and the lender.

These tips have been brought to you by the law offices of Kevin F. Jursinski, a real estate lawyer in Naples Florida.  For more information, please contact us at 877-291-3926.