How to Avoid Foreclosure in Florida

Foreclosure--when a mortgage lender takes back a home--occurs after a Florida homeowner stops making mortgage payments; usually after three to six months of payments have not been received. The lender can then file a foreclosure lawsuit in the Florida courts, asking for the house to be returned to the lender to sell, usually at auction. In addition to losing the home, a foreclosure can ruin credit ratings, limiting the purchase of a future home. If you are facing potential foreclosure in Florida, there are ways to stop the process and avoid foreclosure altogether.

Instructions

1

Contact your lender to discuss your financial situation about your home in Florida if you are falling behind on mortgage payments, or will be. Explain whether this is a short-term (six months or less) or long-term (one year or more) situation, and whether you believe it can be corrected. Ask for a list of programs offered to mortgage holders to see which program would benefit you the most. While there are some federally funded programs to assist homeowners in retaining their Florida homes, the lender may also provide a variety of programs to allow you to avoid foreclosure.

2

Call a HUD-approved counseling agency to discuss your situation, at 800-569-4287 (800-877-8339 for TTD). The counseling agency can give advice on how to work with the lender, what to do if the lender refuses to assist you, and a list of other agencies that may be able to provide financial assistance to help you avoid foreclosure in Florida.

3

Read any paperwork that comes from your mortgage lender immediately; do not ignore it. If a foreclosure lawsuit is filed against you, you will be served papers; file a "pro se" (defending yourself without an attorney) answer within 21 to 28 days, or hire an attorney who can file the answer for you to defend the lawsuit and fight the mortgage lender from foreclosing on the Florida property.

4

Stay in your Florida home, if this is your primary residence. If the worst-case scenario happens and the home is sold, the new owner is required to follow Florida law in having the previous owner evicted. Abandoning the home makes it easier for the mortgage lender to gain a foreclosure more quickly.

5

Do not sign anything without having an attorney look over the paperwork, even from the mortgage lender. Make sure all guarantees by the lender are given in writing, and that they are thoroughly understood before any agreement is made to avoid the foreclosure in Florida.

6

Retain the Florida property by paying the full amount of the loan and any attorney or legal fees, as well as interest, that has accrued, before a sheriff's sale or auction. This may require taking out a new mortgage with another lender, or borrowing the money elsewhere to retain the Florida property and avoid a foreclosure on your credit report.

7

File a lawsuit against the mortgage lender, if you can prove wrongdoing, to stop the wrongful foreclosure of your Florida property. Courts are often deciding in favor of homeowners over proof of breach of contract, violations of "Truth In Lending Act" (TILA) laws, invalid parties affiliated with the lenders listed on the lawsuit, and even unreasonable attorney fees.