Can a Lender Foreclose if You Don’t Make Your Payments?
The prospect of foreclosure can leave any homeowner wondering, “Will it happen to me?” And the reality is that it truly can happen to anyone. No one is immune to falling on hard times, and right now we’re all living in particularly challenging times.
If you are struggling to make your mortgage payments and fear losing your Florida home to foreclosure, there are some important things you need to know.
First, there is a 120-day loss mitigation period.
Before a lender or mortgage servicer can foreclose on a property, the homeowner must be at least 120 days overdue on payments. During those 120 days, when a homeowner realizes it is difficult to keep up with payments, it’s advisable to use that time to consider alternatives like applying for loss mitigation.
Second, you can get back on track.
Foreclosure is a long process, which means you have time to consider your alternatives and take action. And the sooner you act, the more options you have. While catching back up with the loan is one way to avoid a potential foreclosure, there are other loss mitigation options that can help provide some relief, including:
- Seeking forbearance – If you’ve experienced an unexpected loss of income, forbearance may help as it will temporarily reduce or suspend your monthly payments for a certain period of time. It is not a loan forgiveness – you will still be responsible for missed payments – but once the forbearance period ends, you’ll have options for repayment.
- Applying for a loan modification – A loan modification will change your original loan terms by either extending the repayment term, adjusting the interest rate, or making another type of modification to the loan.
Before foreclosure starts, the lender will be in contact and these letters and phone calls should not be ignored. If you receive a notice of default, call the South Florida foreclosure defense team at Jacobs Legal right away at 305-358-7991.