When strategies to prevent foreclosure do not work

by | Jun 15, 2019 | Firm News, Personal Bankruptcy |

When people receive a foreclosure notice on their property in Florida, their first instinct is often to panic and feel hopelessness. While foreclosure is no casual issue, people do have the chance to stop the process in its tracks depending on how they handle their situation. Their ability to take a step back and assess their situation and what can be done to modify the outcome may allow them enough time and resources to change what happens.

According to HGTV, one option that people can consider is filing for bankruptcy. While this decision will impact their finances in some ways, it will also enable them to maintain their property without the fear of foreclosure happening. Experts also suggest that people contact their lender to see if they can work out an agreement that will allow them to continue paying their mortgage on modified terms. Sometimes, when people are honest and explain their reason for being unable to pay their mortgage, they can effectively negotiate a new agreement with their lender to suspend the process of foreclosure.

If people are unable to stop a foreclosure from happening, they may be dealing with the consequences of it as they work toward owning a home again. Bankrate reminds people that it takes seven years for a foreclosure to be removed from a person’s financial record which can make purchasing another home difficult. However, if people are able to demonstrate that they have made adequate changes to be entrusted with a loan again, lenders may be able to approve them for a loan after four years because of the Fannie Mae guidelines.