Foreclosure Questions
Cape Coral, Fort Myers, Lee County and all of Southwest Florida
What is Foreclosure?
Foreclosure is simply the loss of your home based on a court decision. Although there is more than one reason you may experience foreclosure, most commonly it is because of a failure to pay your mortgage. Most lenders will work with a homeowner to help them keep their home by allowing them to make delayed payments, but some lenders are considered predatory lenders because they intentionally lend money to individuals who they know will not be able to make their payments, thereby intentionally leading them into foreclosure.
How does Foreclosure affect my credit score?
If your home is foreclosed on, your credit score will drop sharply. Depending on the credit reporting agency, you may lose as much as 300 points off your credit score. A drop in your credit score will affect how easy it is for you to get approved for loans and credit in the future, and it will also affect your interest rates on credit and loans.
Can I fight Foreclosure?
Foreclosure is not an automatic outcome to missed or late payments on your mortgage. Before your home can be foreclosed on, your lender must follow a legal path to make a claim on your home, and your case will go to a hearing to determine whether or not your home can be foreclosed on. Frequently, contacting your lender and working out a payment plan can help you avoid foreclosure. However, if you have attempted to work out a deal with your lender and have been denied this opportunity, you should contact a real estate attorney immediately. Doing so could save your home, your credit, and keep you out of an unnecessary foreclosure.
Am I able to reclaim my house from Foreclosure?
If you have already failed to make payments after having worked out a payment plan with your lender, it may not be possible to avoid foreclosure. In some states there is a redemption period during which you can reclaim your house. However, Florida is ruled by judicial foreclosures only and does not provide for a redemption period. Once a foreclosure ruling has been made, your home will be sold by the court.
How can an attorney help with a Foreclosure?
If your home is foreclosed on, you may still fall victim to a deficiency judgment. This type of judgment determines that, even though your house is foreclosed on and sold, you are still responsible to pay the difference on the home if it is sold for less than your loan value.
If you are facing a foreclosure and want to take steps to save your home or prevent a deficiency judgment, please contact Lusk, Drasites, Tolisano & Smith, P.A., serving Cape Coral, Lee County and all of Southwest Florida.
