Foreclosure is the technical term for the process of a lender reclaiming the collateral in a mortgage. Your home is the collateral for a mortgage instrument, which means that the lender takes steps to become the official owner of your home. That means you lose your place to live and the equity you have built in the property over the years.
Under the terms of a standard mortgage, the bank finances the purchase but reserves the right to foreclose on the property if you do not meet your end of the deal. In most cases, foreclosure efforts by lenders stem from a failure to repay the mortgage as agreed. Homeowners can find themselves struggling to make ends meet, which could result in late or missed mortgage payments.
Typically, lenders will give borrowers a few months to figure things out because foreclosure can be expensive for them. However, lenders can take action after a single missed payment, in some cases. Receiving notice that your lender intends to foreclose usually involves legal service, which is an intimidating experience. The good news is that you have the right to defend against the foreclosure, and you should do so as soon as you know that foreclosure is likely.
Did you pay on time, or have you paid the missed payments since then?
Sometimes, it is a lender's internal mistake that leads to foreclosure proceedings. When you receive your first late payment notice, you may think nothing of it. After all, you sent your payment as always. However, glitches in the lender's computer system or even changes in the account from which you draw your payments could mean that your payments don't get credited to your account in the manner that they should.
Sometimes, when you make a payment after the due date, the lender processes it differently. This can mean that they take steps toward foreclosure even after you have remedied your late payments. In that situation, you will have a relatively straightforward defense when you provide proof of payment. However, even if you have missed some payments, it is often still possible to defend against foreclosure.
You may be able to negotiate a solution outside of court
If you know you will face foreclosure proceedings in the near future, sitting down to talk with an experienced foreclosure defense attorney is a good first step toward saving your house in Florida. Once you have discussed the specifics of your situation, your attorney can potentially negotiate with your lender, helping you to avoid court proceedings.
It is often possible to reach a mutually agreeable, amicable solution without the court's intervention. If that is not possible, your attorney can help you develop a defense strategy and fight for your home in court.