If you are a homeowner who is struggling to make your monthly mortgage payment, you are not alone. While COVID-19 is, first and foremost, a public health crisis, it has had significant economic effects. With tens of millions of Americans told to stay home, it seems that the U.S. is at the beginning of what will surely be one of the deepest recessions in history.
Last week, more than 180,000 workers in Florida filed claims with the state’s overwhelmed and struggling unemployment system, raising the state’s total seeking jobless benefits to over a 500,000 people since it went under lockdown last month.
Foreclosure and Deficiency Judgment
If you fail to make your home mortgage payments, foreclosure may occur. Foreclosure is the legal means that your lender can use to repossess your home. When this happens, you must move out of your house.
If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also owe your lender an additional amount. Both foreclosures and deficiency judgments can seriously affect your ability to qualify for credit in the future.
What You Can Do to Avoid Foreclosure
According to St. Petersburg RE/MAX Metro realtor Estelia Mesimer, don’t avoid the problem. It won’t go away. The further behind you get in your mortgage payments, the harder it will be to reinstate your loan, and you run the risk of losing your house. You need to be pro-active!
Here are three important steps to take.
- Contact your lender as soon as you realize that you have a problem: Lenders don’t want your house. They have options to help borrowers through difficult financial times.
- Open and respond to all mail from your lender: The first notices lenders send will offer good information about foreclosure prevention options that can help you weather financial problems; later mail may include important notice of pending legal action. Failing to open the mail isn’t an excuse in foreclosure court!
- Know your mortgage rights: Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about (Florida) foreclosure laws and timeframes.
Foreclosure Prevention Options
As a fulltime real estate professional with over twenty years of experience, Estelia has built her reputation on providing outstanding service to clients. “I look out for their best interests and keep them informed each step of the way during the real estate transaction. I’ve worked with many distressed homeowners to save their homes from foreclosure when a Short Sale becomes their only option.”
Short Sale: The process is complex and lengthy and requires a knowledgeable and experienced realtor who can provide expertise in three primary areas crucial to a successful Short Sale outcome – pricing, paperwork and persistence. And, you need a realtor who is a skilled negotiator, someone you can rely on to see you through a difficult time.
Loss Mitigation: This term refers to a loan servicer’s duty to mitigate or lessen the loss to the loan owner resulting from a borrower’s default. Given the costs that an investor must bear through the foreclosure process, loss mitigation is intended to be beneficial for the investor. It is also supposed to be beneficial for the borrower by offering such things as a loan modification, forbearance agreement, and repayment plan which allows borrowers to stay in their home.
Short Sale/Loss Mitigation Benefits
- As a homeowner you can avoid paying closing costs, real estate commission, and the mortgage debt owed on your home.
- No Money Out Of Pocket – authorized commissions are paid by the lender.
- You can avoid bankruptcy, foreclosure, save your credit, and start fresh without liability.
Questions? Please contact
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St. Petersburg CommunitiesIf you’re interested in any of these of communities or live in one of them and are thinking of selling, call Estelia today!
Greater Pinellas Point
Historic Old Northeast
Historic Roser Park
Isla del Sol