Are you having trouble making your mortgage payments in Florida? Don’t worry- you’re not alone. Fortunately, you have several mortgage relief options at your disposal. This blog post will explore some of the most common options and help you find the one that’s right for you. Keep reading to learn more.
Getting Started
In order to obtain mortgage relief, the first step is to communicate with your lender and explain your financial situation. Most lenders are willing to work with homeowners who are having difficulty making their payments. If you are unsure how to contact your lender, free assistance is available from HUD-approved housing counselors.
The Types of Mortgage Relief Options
Florida offers a variety of mortgage relief options. Some of these programs assist you with making your mortgage payment, while others can lower your interest rate or lengthen your mortgage.
Mortgage Modification
A mortgage modification involves an agreement between you and your lender to modify the terms of your loan. A term extension, a reduction in interest rates, or a change from an adjustable-rate mortgage to a fixed-rate mortgage might be considered.
Forbearance
Forbearance is a temporary suspension or reduction of your mortgage payments between you and your lender. Financial hardships, such as job loss or medical emergencies, often prompt homeowners to choose this option.
Principal Reduction
A principal reduction lowers the amount owed on your mortgage, thus making payments more affordable.
Loan Refinancing
You can lower your monthly payment and interest rate by refinancing your mortgage. Changing from an adjustable-rate mortgage to a fixed-rate mortgage is also possible.
Pre-foreclosure Sale
A short sale, also called a pre-foreclosure sale, is when your home is sold for less than what it’s worth.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure allows you to return your home to the lender in exchange for forgiveness of the mortgage debt.
Mortgage Relief Programs in Florida
As with most states, Florida provides financial relief to homeowners through federal programs.
Florida’s Homeowner Assistance Fund (HAF)
For Florida homeowners who’ve suffered financial hardship due to the pandemic, a maximum of $50,000 is available from Florida’s Homeowner Assistance Fund program. This program helps homeowners pay their mortgages and other costs associated with their homes.
How it Works
Assistance is offered as a non-recourse grant that does not require repayment. Payment is made directly to the loan servicer or other approved entity, not to the homeowner.
Eligibility Requirements
You must have suffered financial hardship due to the Coronavirus pandemic after January 21, 2020, to qualify for this program.
You must also meet the following qualifications:
- It must be a Florida property.
- Household income must be less than or equal to 150% of the area median income or 100% of the national median income.
- Your primary residence must be the property you own and occupy.
How to Apply
Register and apply here. Furthermore, you should be prepared to provide mortgage statements and other housing-related statements, as well as documentation of your financial hardship.
How Does Foreclosure Work and What Are Its Consequences?
A lender may start the foreclosure process if you are behind on your mortgage payments. A foreclosure is a legal process by which your lender repossesses your home if you default on your mortgage. Foreclosure can have severe consequences, so it’s imperative that you understand the process and your rights before it occurs. Foreclosure, for instance, can stay on your credit report for seven years, making it difficult to get credit in the future.
Avoid Foreclosure with Favor Home Solutions’ Save My Credit Program
With Favor Home Solutions, you can protect your credit and get back on your feet quickly and easily! Our “Save My Credit” program takes over your mortgage payments, so you won’t have to worry about foreclosure showing up on your credit report or listing your home for sale. You might even be able to put some money in your pocket at the end of it all. No fees, no gimmicks, or obligations. Contact us today!
