The prospect of losing your home may be one of the most frightening and uncertain thoughts you and other Florida residents have while undergoing financial struggles. What are all the things that can happen if the bank takes possession of my house, you may wonder?
If you believe a foreclosure is unavoidable, SFGate explains that you may avoid the heartache and emotional turmoil of the formal process by choosing to hand ownership over to your mortgage lender – known as a deed in lieu of a foreclosure – which may negatively impact your credit less than going through the entire foreclosure process. It is important to note that the bank could pursue you for the difference owed on your mortgage after it sells your home.
A foreclosure will negatively affect your credit for at least seven years, during which time you might not be able to gain approval for a new mortgage. However, is it all bad to lose your home during hard times? While you are negotiating with your bank, preparing to file for bankruptcy or otherwise addressing your financial problems, you may be able to avoid making mortgage payments while living in your home and saving money for living expenses you will need after you move out. You can also attempt to move somewhere more affordable while you recover financially and begin to plan for a brighter future.
There is always a light at the end of the tunnel, whether you choose to pursue bankruptcy or to find other ways to manage your debt. This information is not meant to replace the advice of a lawyer.