When you purchase a house using a home loan the lending institution has taken a security interest in the property. In the event you as the borrower cannot maintain the mortgage payments on the home the fact that the lender has a security interest gives them the legal right to proceed with a foreclosure in Wellington FL. The lender can auction the house and use the proceeds from the auction to recover the investment they made.
In the event the property does not sell or it sells but the price is not high enough to cover the loan amount then a deficiency judgment might be pursued against you. If this is the case having a deficiency judgment against you can seriously jeopardize your chances of getting real estate in the future. A foreclosure in Wellington FL is very worrisome but there are a few options available that might help you to avoid it.
You must make the decision of whether it will help your financial problems if you allow the foreclosure to push through. If the financial problems you are facing are only temporary, perhaps the sudden loss of your job, then you may be financially viable again in a short period of time. On the other hand you may have problems with debt that are so huge that foreclosure is the best option.
There are credit counselors that you can work with, these people can help you negotiate with the lender in an attempt to renegotiate the loan; lowering the payments and the interest rate that may help to avoid foreclosure. These professional debt counselors can help you make an honest assessment of your financial situation and create a plan that will help with your current debt problems as well as help you in the future.
It is not necessary to use a debt counselor; you can approach the lender directly. It is not in the lenders interest to foreclose on your property, they are in the business of collecting your interest and principal; they do not want tangible property on their hands. If you can develop a repayment plan that is agreeable to both you and the lender the lender may agree.
You can try to renegotiate the loan. If you bought the house at a time when the interest rates were high your payments will reflect this; you can attempt to renegotiate getting a lower rate of interest which might be all you need.
The final option to avoid foreclosure in Wellington FL is simply sell the house. If your debts have gotten out of control the best solution may be to sell, this will at least stop foreclosure proceedings and stop any bad marks on your credit record.
If you are being threatened with foreclosure in Wellington FL you have certain options at your disposal. To understand how you might avoid foreclosure and keep your home you are invited to call upon the Law Offices of Sean I. Koplow.