foreclosure faq tampa fl

Foreclosure Defense Lawyer Answering Your Questions

There is no doubt that you will have numerous questions when you are facing a possible foreclosure. You may want to know how this type of action could affect your record, as well as the steps you can take to prevent a foreclosure from occurring.

You can count on Dion R. Hancock, P.A. to answer all of your questions and to provide you with helpful legal guidance.  Below are some of the most frequently asked questions regarding foreclosure:

My home has been foreclosed upon. How long will it be until I am eligible to buy another home?
Securing a mortgage can be challenging for any prospective homeowner. However, when an individual has foreclosure on his or her record, the challenges become even greater—though not impossible—to overcome. In order to qualify for a government loan, a 2 year period past discharge is required.

How long will a foreclosure remain on my credit report?
Foreclosures can remain on your credit report for up to 7 years. However, the negative consequences of the foreclosure will diminish gradually every year. It is not common for lenders to look back further than 7.5 years when reviewing your credit score and determining if you are eligible for a loan.

What options do I have for possibly preventing foreclosure?
If you find that you are unable to make your monthly mortgage payments, you may consider a mortgage loan modification. Through this option, you convince the lender to refinance your loan so that your monthly payments are more affordable. You should then be able to avoid defaulting on your mortgage. Other defense options include short sales and deeds in lieu of foreclosure. With the latter two options, you still lose your home, but you do so under more favorable terms and without the result of a foreclosure on your credit history. It is crucial that you consult with lawyer and learn which form of foreclosure defense is right for you.

How is a short sale different from a foreclosure?
In order to avoid having a property undergo foreclosure, a mortgage lender will often agree to a short sale. In this practice, the lender (which is typically a bank) will agree to accept less than the total mortgage amount that is owed. While this practice has been occurring for a long time, it has gained greater popularity in more recent years due to of the housing market crash. In order to qualify for a short sale, you must prove that you are facing financial hardship and you must own a house that is worth less than what is owed. In many cases, your lender will require you to submit bank statements, pay checks, and tax returns in the approval process.

On the other hand, foreclosure is a civil lawsuit where your lender pursues permission from the court to sell your property in order to satisfy the mortgage debt. After court approval is obtained, the lender may sell the property at auction in order to recoup the debt. When foreclosure occurs, the previous homeowner loses all rights to the property. In conclusion, when you choose to move forward with a short sale, your credit history report will say “lender settled for less than owed” rather than “foreclosure.” A short sale will not damage your credit nearly as much as a foreclosure will.

How is deed in lieu different from foreclosure?
A deed in lieu of foreclosure is a great way for mortgage lenders to avoid spending the time and money that is required in a foreclosure process. With this alternative, the homeowner voluntarily gives the deed to his or her property to the lender in exchange for release from the mortgage debt. This alternative can allow you to walk away without having a foreclosure on your credit report, or a mortgage loan to worry about. In order to be eligible for a deed in lieu, you must show proof that you are not able to afford your monthly mortgage payments. At the end of the day, the decision is entirely up to the lender to accept or deny the deed in lieu.

What is a loan modification and how can it help me?
With a loan modification, the lender must agree to alter the basic terms of your loan. This is usually done by lowering the interest rate, lowering the monthly payment, and / or adjusting other terms of your loan so it is more affordable for you. By reducing your overall interest rate, your monthly payments will be slightly lower, which may give you the ability to make your payments on time. It is very rare for lenders to agree to lower the principal amount on the loan. Again, it is up to the lender’s discretion whether or not to agree to a loan modification.

Should I hire an attorney?
Foreclosure defense is extremely complex. As a result, you should not try to handle these types of matters without the assistance of a skilled lawyer. Your home and your finances are on the line! With my extensive background in foreclosure defense, you can be confident that I will properly inform you of your options and provide you with high-quality legal assistance.

Get the Legal Guidance and Assistance You Deserve

When purchasing a new home, no homeowner expects that he or she will face foreclosure. I understand that the combination of the real estate market and the overall economic downturn of the state of Florida has sent you down the distressing road of losing your home. I strongly advise you to secure the assistance of my law firm.

As a passionate attorney, I am here to help you through this difficult time. I will address your situation and work alongside of you in order to develop a personalized strategy that will help you meet your financial goals. I serve clients throughout Tampa, Hardee, Hernando, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota Counties.