After falling behind on home loan payments, it could take several months until your lender begins the foreclosure process. As noted by GoBankingRates.com, you may skip four payments and keep your property if you can then get caught up.
Before missing the fourth payment, you may receive a demand letter urging you to send the past-due payments. By getting your payments up-to-date you may hold on to your home and avoid foreclosure. Some Florida homeowners, however, look to other options such as selling their properties or filing for bankruptcy.
Selling a home
Based on your home’s value, you may give some thought to listing your property for sale in the Sunshine State’s hot housing market. As reported by Florida Realtors, you may profit from selling your home and maintain your credit score. With sufficient equity in your property, proceeds from a sale may help resolve the financial issues that caused you to miss mortgage payments.
Data analysis company Black Knight revealed that about one-third of borrowers built a minimum of 40% equity in their homes before a lender moved to foreclose. RealtyTrac estimates approximately 87% of borrowers own homes with positive equity during foreclosure. Without assessing your home’s current market value, you may not see all of your options.
Filing for bankruptcy
As reported by Bankrate.com, you may protect your Florida property from creditors during bankruptcy if you owned it for at least 40 months. Your lot may not, however, exceed half an acre if located inside a municipality. If situated outside of a municipality, it may not exceed 160 acres. The exemption generally does not place a limit on your home’s equity value.
If you experience financial hardships, you may decide to sell your home. You may, however, also have an option to file a bankruptcy petition to obtain relief while you also keep your home.