How to Stop your Tampa Bay Foreclosure

For many people, the first thing they want to know when circumstances deal them a bad hand is how to stop the Tampa Bay foreclosure they may be facing. Whether it is the loss of a job or a major illness there are many reasons for falling behind on the mortgage payment. When you get behind, the lender will file a notice of default to protect themselves. In order to stop your home from becoming a Tampa Bay foreclosure, the first thing you should do is contact your lender.

There are options that may be in your best interests to check out. The one thing you do not want to do is ignore letters from the bank or mortgage company or pretend that this is not happening. Do not be embarrassed. This is far more common than you imagine.

By calling your lender, you may be offered some options that will allow you to save your home from becoming a Tampa Bay foreclosure. The lender may agree to give you the time to make up the missed payments. Agreeing on a repayment plan is called forbearance.

They may forgive a payment or two if you can get back on track and make the payments. This is debt forgiveness and is not a common occurrence but it does happen occasionally.

The lender may work out a repayment plan which is essentially adding an amount to your monthly payments to make up the amount you are in arrears.

If your mortgage is adjustable, there is the possibility of the lender freezing the interest rate before it goes up or changing it to a lower one that you can handle. There is also the possibility of a note modification which involves extending the amortization period.

A refinance is another option which increases your loan balance to add the amount you are behind and re-amortize your loan.

Do a partial claim which is another loan for the amount of the missed payments. This is usually government loans and you must meet the criteria for this loan.

If all else fails and your home becomes a Tampa Bay foreclosure, there is always the option of trying to sell the home before the foreclosure becomes final. Also worth considering is a short sale, whereas the home is sold for less than is owed or a deed in lieu of foreclosure, which is deeding the house back to the lender.

For more information about homeowner assistance programs, please visit our “Find A Local Counselor” page, complete the form and we’ll be happy to assist you further.