Falling behind on mortgage payments can happen to anyone, but with it comes very real consequences if you’re not able to act early and fight for what’s yours. We’ve discussed broadly in past blog posts about what you can to do to avoid foreclosure, but in the next two posts, we want to dive further into some specific steps you can take if you find yourself struggling to keep up with mortgage payments.
In this post we’ll discuss the importance of getting organized and prepared. In our next post, you will learn more about specific action steps to take once you have your documents and budget in order.
What to do to avoid a foreclosure
- Get organized – Whether you’ve lived in your home for one year or ten, it can be easy for files and documents to end up in disarray. Spend some time gathering all of your home and mortgage documents and put them in a single spot. Among the important papers you should collect include your loan documents (including copies of the mortgage and promissory note), monthly billing statements, payment records, escrow statements, property tax information, insurance information, and copies of any correspondence between you and your lender. If you’ve done any refinancing, be sure to have those and your closing documents gathered as well.
- Learn your rights – Education is key to being able to put up the strongest defense in a foreclosure case. Review your specific loan documents and ask your lawyer questions if you can’t understand the fine print. Know what you are accountable for including late fees or other service charges if you fall behind on payments. Also spend time learning about Florida’s foreclosure laws and what your lender legally can and can’t do. You have rights and they should be protected. Contact us at Silverberg|Brito, PLLC for any and all questions.
- Review and establish your budget – In addition to collecting and organizing your loan documents, you should also spend time gathering financial information so you have a solid understanding of your current income and expenses. Once you know how much money is coming in and going out each month, create a new budget that you can stick to. Often it’s the little things that can quickly get out of control. For larger monthly expenses, you may be able to negotiate.
With our help at Silverberg|Brito, PLLC, foreclosure doesn’t have to end with the loss of your home. You have options, and we will help you implement the best strategy for your situation. Contact us today to schedule a confidential consultation.