Although Ponte Vedra Beach properties continue to thrive, and simultaneously offer many benefits to buyers, foreclosures and bankruptcy are topics all-too familiar in today’s sluggish housing climate. As a result, millions of Americans are looking at possibly losing their homes. Here is some information that will come in handy for those who may be facing the tough choices.
What is a foreclosure?
Sometimes homeowners (borrowers) find themselves in a position where paying for their mortgage becomes too much of a financial burden. Foreclosure is the legal means in which a mortgage company, bank or other creditor takes legal ownership of a borrower’s home after the borrower defaults on the home loan contract. The property may even be sold to pay off the debt. In any case, the borrower loses all rights to the home and must vacate the property.
It looks like foreclosure is inevitable for my family and me. Where do I start?
Going through foreclosure is a legal matter and the courts must become involved. Therefore, experts recommend that borrowers first check with their lenders to see if there is anything they can do to avoid foreclosure. Sometimes borrowers may get a chance refinance, pay off the default amount, or file for bankruptcy before their home goes into foreclosure. In fact, some states allow borrowers to stay in their houses for up to a year while trying to avoid foreclosure, depending on whether they use a mortgage or trust deeds.
Do I really have to lose my home? What about filing for bankruptcy?
Many borrowers choose the option of bankruptcy so they can keep their homes. By definition, bankruptcy is an option people turn to (through the shield of bankruptcy court) to get a handle on their overwhelming debt, either by completely eliminating the debt, or through a repayment plan. It is usually a last resort for those swimming in debt.
Filing for bankruptcy for your Ponte Vedra Beach real estate is not without risks. They are costly and can sharply bring down credit scores for years. People also have to meet certain requirements to qualify for bankruptcy, so it’s not always an option that can even be considered.
Remember foreclosure isn’t always the answer
Truth be told, lenders don’t want to put homes in foreclosure. Communicate with your lender as soon as you begin to have trouble paying your mortgage. Consider refinancing your home or trying to sell it. If you’re set on staying in the home, talk with your lender about possibly working out a repayment plan. Also, research your options if you’re approaching foreclosure as a result of job loss or medical problems that keep you from working. The government has programs you may qualify for. Last, but definitely not least, seek the counsel of real estate lawyers. They may be able to steer you in the right direction for your situation.
Date: 2008-10-02 13:25:00