The idea of losing your Florida home to a foreclosure can be scary. Essentially, the process kicks you out of your home and leaves you in a financial bind. It can be difficult to pick up and move on after a foreclosure. That is why it is often advisable to try to find an alternative that will allow you to avoid going through the process.
Fannie Mae notes there are generally two main options you can take to avoid a foreclosure. This, of course, would be the options you have if you cannot pay up on your mortgage and get your account back in good standing. The options include a mortgage release or a short sale.
In a mortgage release, you transfer ownership back to the lender voluntarily. You may be able to lease your home for a period of time, allowing you to have time to get things in order to move. You may also be able to get money back on the process, and you can qualify for a new mortgage again in two years, which is far less than the seven-year wait after a foreclosure.
A short sale is when you sell your home for less than the amount owed. Again, you can shorten the time from seven to two years for how long you will have to wait to get a new mortgage. You also can get money from the deal. You may get some time to get things in order to move depending on the buyer.
Remember a foreclosure is a forced process where you have no control. Trying a voluntary option is much better for you and your family. This information is for education and is not legal advice.