If you have missed mortgage payments, your lender may move to initiate foreclosure after 90 days have passed. If you do not take action, you may face the loss of your home. Working with a Tampa bankruptcy attorney, you can either fight the foreclosure in court or stop it immediately by seeking bankruptcy protection. The key is that you must act now to have all options available to you, whether it is challenging the foreclosure, filing for bankruptcy, or seeking to work with your lender to reach a solution. Contact Consumer Law Attorneys today for help.
Why Homeowners Fall Behind on Payments
Homeowners may fall behind on their mortgage payments for a number of reasons. The most obvious reason for missed mortgage payments is job loss. Many people do not have enough financial reserves to weather something unexpected in life, like the loss of a job.
Medical expenses are another prime reason why homeowners go into default on their mortgage. They may have a large cost share on their health insurance plan, which means that they must pay thousands of dollars more for emergency care or a procedure. In fact, medical debt is one of the foremost reasons why people go into bankruptcy.
Even if nobody in the household has gotten sick or lost their job, it is becoming much more expensive to maintain homeownership throughout the county. In Florida, homeowners’ insurance premiums are skyrocketing, along with utility costs. A homeowner may be forced to choose between making a mortgage payment and keeping the lights on in their home.
Legal Tools That Can Help
Under federal law, your lender must discuss forbearance and loan modification options with you before it initiates the foreclosure process. Your lender is under no obligation to agree to these options, but they must at least have the discussion with you. There may be a chance that the lender may be willing to work with you. They will typically do so if it is in their best interests.
For example, if the amount that the lender may get for your home at a foreclosure auction is less than what you owe, it may be in the lender’s financial interests to work with you. In addition, some lenders are penalized by companies that back their loans when they foreclose on homeowners. Your bankruptcy attorney in Tampa can speak with your lender on your behalf to see if they are willing to work with you.
The Role of Bankruptcy in Stopping Foreclosure
Whether it is Chapter 7 or Chapter 13, bankruptcy can play a powerful role in stopping foreclosure. As soon as you file for bankruptcy, an automatic stay is imposed by law. Your creditors cannot do anything to collect on your debts, both to give you breathing room and to keep them from changing your situation in a way that will affect other creditors. Creditors can be in serious trouble if they break this law.
Chapter 7 bankruptcy can clear other unsecured debts that may free up more money for you to get current on your mortgage payments. In addition, Florida’s generous homestead exemption means that you will not have to surrender your home to the bankruptcy trustee. If you seek Chapter 13 protection, you will agree to a repayment plan that allows you to catch up on the payments that you missed. Following this plan, along with making your regular mortgage payments, can stop foreclosure in its tracks.
Local Tampa Resources for Homeowners
Homeowners in Tampa who are facing foreclosure have access to several local resources that can provide meaningful help. The City of Tampa’s Housing and Community Development Department offers foreclosure prevention counseling, budgeting assistance, and help communicating with mortgage lenders. HUD-approved nonprofit housing counseling agencies in the Tampa Bay area provide free or low-cost guidance on loan modifications, repayment plans, and forbearance options.
Organizations such as Solita’s House work directly with homeowners to develop financial action plans and explore alternatives to foreclosure. Legal aid organizations in Hillsborough County may also offer assistance to qualifying homeowners facing foreclosure or lender disputes. In addition, the national HUD foreclosure prevention hotline can connect Tampa residents with certified housing counselors for confidential advice and support. Acting early can significantly expand available options.
Contact Our Tampa Bankruptcy Attorneys
At Consumer Law Attorneys, we work with homeowners on debt relief. We can fight foreclosure on your behalf in court or represent you during the bankruptcy process. The important things for you to know are that you have options when you run into financial distress, and that losing your home is not automatic. To learn more about stopping foreclosure in Tampa, speak to Consumer Law Associates. One phone call to us at (877) 241-2200 or a message to our website can help you get started on changing your financial picture.
