Lake Mary Foreclosure Options for Homeowners in Lake Mary and Greater Seminole County
Below are eleven options available to help you potentially avoid a Lake Mary foreclosure. Remember, every financial situation is unique. We recommend you contact a lawyer and /or a financial planner to help you determine your best solution. We are not an attorney nor are we accountants. We are here to help you explore your options and provide the Lake Mary real estate services best for your situation.
1-Complete Reinstatement of Your Lake Mary Home
While seldom used, a Lake Mary homeowner has up until the day of the foreclosure sale at the Seminole County court house to catch up all mortgage payments, late penalties in arrears and court fees to ward off a Lake Mary foreclosure.
2-Re-payment Plan or Forbearance
With this plan, a Lake Mary homeowner can negotiate for a repayment plan with your mortgage company to catch up all the payments in arrears, including late fees and court costs. The forbearance plan often allows you to pay smaller payments over time instead of one lump sum.
3-Refinance Your Lake Mary Home
To allow for a refinance, current mortgages rates must be lower than your present mortgage rate, plus your credit can't be badly damaged. With a refinance, you can lower interest rate and reduce your total monthly mortgage payment.
4. Rent Your Lake Mary Home
Renting your Lake Mary home to a tenant allows you to makes your mortgage payment which not only reduces your immediate stress, but it also provides you a solid future investment. As your Lake Mary Realtor, the Summers Realty Team will show you what other Lake Mary homes like yours are producing in monthly rents.
5. Sell Your Lake Mary Home
To take advantage of this option, you must have equity in your Lake Mary property to sell the home instead of losing it to a foreclosure. Remember, a Lake Mary foreclosure can most certainly damage your credit and your financial future. As your Lake Mary Realtor team, we can help you determine the fair market value for your Seminole County home and calculate your net proceeds after the sale. The Summers Realty Team recommends you contact your mortgage company to get the payoff for all of your mortgages before we meet so the calculations are accurate.
6. Mortgage Modification
Lending institutions are performing more mortgage modifications. Why? Banks are not in the real estate business and they do not want to own Lake Mary real estate. When banks foreclose on a Lake Mary home that is exactly what happens, they become real estate owners. After foreclosure, banks have to pay the property taxes, homeowners insurance, yard and house maintenance, utilities, asset managers, Lake Mary Realtors, attorneys and property maintenance until the property can be sold. (Usually at a reduced cost). Call your mortgage company to determine if they are willing to restructure your payments and reduce your monthly payment making them more affordable.
7. Short –Refi-
Also called the HOPE Program, this relatively new program reflects what lengths some mortgage companies and lenders are going to avoid foreclosing on Lake Mary properties. This program involves a refinance of a Lake Mary home with a reduction in the principal balance and often the interest rate as well.
8. Service Members Civil Relief Act (SCRA)
The SCRA bill that was signed into law (Public Law 108-189) on December 19th 2003. This law provides certain consumer protections to military personnel. The law also provides Service members other protections. For more details of this unique act, contact the Summers Realty Team.
9. Deed in Lieu of Foreclosure
Classified as a volunteer/friendly foreclosure, the Lake Mary homeowner essentially gives the deed back to the mortgage company. This action prevents the banks from having to go through a lengthy foreclosure process. The bank will still report a Deed-in-Lieu as a foreclosure on your credit report. And it will result in the same negative credit consequences as mentioned above. However, they may waive their rights to a deficiency judgment because of your cooperation. You are still subject to taxation and this solution only works in cases where there is one mortgage and there are no liens (or very small liens) on the Lake Mary property. In rare cases, the first mortgage company will negotiate with the second mortgage company.
This is where you hire an attorney for a fee to file chapters, 7, 11 or 13 taking all or part of your debt to the courts to be dismissed. A bankruptcy delays foreclosure, but ultimately you end up with a bankruptcy and a foreclosure on your credit report. Many people believe when they file bankruptcy all of their problems go away. The truth is, creditors can still come back to you for a deficiency judgment and you may have serious tax consequences too.
11. Lake Mary Short Sale
The definition of a Lake Mary short sale is when a homeowner is ‘short’ when you owe more on your Lake Mary property than the current market value.
Ready to implement one of these solutions but not sure which one seems best? Contact Debbie Summers Realty Team before your lake Mary home is foreclosed on.
Charles Rutenberg Realty is not associated with the government and our service is not approved of by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.