Realizing that you simply cannot afford to keep up with mortgage payments is hard. There's the worry of just what is going to happen and where you are going to live, and for some, a certain amount of shame realizing that you may end up losing your home.
While recently released numbers show an overall decrease in nationwide foreclosures, it turns out that all of the judicial states combined actually saw an increase as opposed to a combination of all of the states where a judge is not required to sign off on a foreclosure. Florida is a judicial state.
One of the nation's largest home loan servicers is seeing a decline in the number of delinquent payments by homeowners in South Florida. In less than a year, those homeowners that were at least 60 days late dropped by a third, according to a spokesperson for Bank of America. The numbers show the decline from 30,000 late homeowners in June of last year to 19,000 this month. According to a federal report from the U.S. Department of Housing and Urban Development, this is a national trend as well.
In Florida, on average it takes 861 days from the time a person stops paying their mortgage to when the foreclosure process officially comes to an end with the bank taking complete control of the home. However, now with strict guidelines for banks in terms of repossession, the thought is that foreclosures will increase in Florida and across the country.
When a family income is reduced by the loss of employment, underemployment or an unforeseen increase in medical expenses, they can end up getting behind on their mortgage payments. And while bankruptcy is one way to halt a foreclosure, a mortgage modification can also help a person avoid foreclosure.
If all goes as planned, in the future, more struggling homeowners in Florida, and around the country, who are in fear of losing their home to foreclosure, may be able to find some needed relief through the federal Home Affordable Modification Program.
The owner of the Miami Dolphins recently agreed to the terms of a mortgage modification in order to avoid foreclosure on a building that he controls in Florida. The modification news came right before the holidays, which most likely resulted in a huge sigh of relief for Barnes & Noble and Macy's, which are both housed in the 756,471-square-foot CityPlace mixed-use center.
With a record number of home owners facing financial hardship and foreclosures on their homes, including many in the Orlando area, many people are looking for alternative ways to pay and lessen their burden. A pilot program for mortgage modification started last year in the Orlando area and not people across the nation are taking note.
Some Florida homeowners incorrectly believe that just because they have an expensive mortgage that they will not be able to qualify for a loan modification. However, while the Home Affordable Modification Program is typically for conforming mortgages, the majority of homeowners who actually do receive modifications do so outside of HAMP. In these situations, homeowners work directly with lenders.
These days many Florida homeowners own homes with mortgages that are underwater, meaning that they owe more on their mortgage than the home is worth. And while this is tough for any homeowner, many couples who are underwater and facing divorce, are also wondering what their options are. It turns out, they are much the same as many others also facing mortgage problems.