A missed mortgage payment does not automatically mean foreclosure. You begin to run that risk when you have fallen several payments behind on your mortgage. Still, foreclosure on your home is not assured, as the lender needs to go through a court process first. In addition, seeking bankruptcy protection is also a powerful tool for foreclosure prevention in Orlando. At Consumer Law Attorneys, we can help you explore these options and work for you to keep your home, which is important to you.
Florida’s Foreclosure Timeline
Your lender cannot immediately move for foreclosure as soon as you fall behind by missing one payment. They must wait at least 90 days to send you a Notice of Default, giving you options for how to cure the situation. There is no fixed waiting period between the Notice of Default and when the lender can start foreclosure.
In Florida, the lender begins foreclosure by filing a complaint in court and serving it on you. After that, you have twenty days to file your answer in court, outlining your defenses. After that, the timing of your case is at the discretion of the court. If your case is contested, it can take many months to work its way through the court system. This stage will be the longest one of the foreclosure process. If the judge issues an order allowing for foreclosure, the auction that sells your home will usually take place within 20-35 days.
Using Chapter 13 to Restructure Payments
Unlike Chapter 7 bankruptcy, which is a liquidation, Chapter 13 allows you to restructure your debt. Essentially, you get more time to pay what you owe, along with the possibility of debt reduction along the way. When you have missed mortgage payments, they become part of the total debt that you are restructuring.
As part of a Chapter 13 bankruptcy in Orlando, you will agree to a repayment plan, which includes your missed mortgage payments. While you are making these regular payments, you must still pay your monthly mortgage. If you miss payments on either of these, you run the risk of having your home foreclosed on. Nevertheless, many homeowners opt for Chapter 13 bankruptcy because it allows them to keep both their assets and their home when they are in financial distress.
Communication with Your Lender
Your lender is obligated to communicate with you before it initiates foreclosure under federal law. It may be in your interests to keep an open dialogue with your lender, even though they may become your adversary in the foreclosure process. Even though your lender is under no obligation to work with you, and they can certainly move towards foreclosure when the law allows, it may be in their interests to do so. Lenders are often penalized by the large companies that back their loans when they foreclose. Your lender can lose money on the sale of your home.
Your lender may offer you several options if they are inclined to help. The first is forbearance. Here, the lender pushes the pause button on your repayments. You are still obligated to make these payments in the future, and interest will continue to accrue. Your lender can also modify the terms of your loan, either allowing you to pay less or lowering your interest rate.
When to Seek Legal Help
It is in your interest to seek legal help from a bankruptcy lawyer in Orlando as soon as possible once you fall behind on your mortgage. They can represent you in all aspects of the legal process going forward. Your attorney can negotiate with your lender to see if they will give you some type of leniency.
You need an attorney if your foreclosure case is going to court. If you do not participate in the legal process, your lender can obtain a default judgment against you that allows them to foreclose on your home.
Your lawyer will explain all possible efforts for foreclosure prevention in Orlando. This can even include exploring the bankruptcy process and seeing if it can work for you. There may be options available to you that you do not even know about if you wait too long to hire a lawyer to help.
Contact Our Bankruptcy Lawyers in Orlando
If you are behind on your mortgage and worried about whether you can keep your home, legal help is only a phone call away. There are multiple options for not losing your home, but you need representation from an experienced attorney to give you the strongest possible chance. You can take the first step towards getting out of financial distress by scheduling a free initial consultation with Consumer Law Attorneys. Fill out an online contact form or call us today at (877) 241-2200 for debt relief.
