What You Need To Know About Foreclosures As A Homeowner In Escambia County, FL

In the following article, we will explore:

• How different forms of bankruptcy can prevent or significantly slow down the foreclosure process on your Florida property.
• The ways in which applying for a loan modification can place a temporary pause on your foreclosure process.
• Common myths and misconceptions around foreclosure law, and exactly what you should expect when working with a foreclosure attorney.

Does Bankruptcy Always Prevent Foreclosures In Florida?

While it may not entirely prevent foreclosures in Florida, it is certainly true that bankruptcy can significantly slow down a foreclosure on your property. However, your foreclosure can be impacted in a variety of ways by the forms of bankruptcy you file for. For example:

• Chapter 7 Bankruptcy: The purpose of Chapter 7 bankruptcy is to eliminate any unsecured debts by liquidating non-exempt assets. This will put an automatic stay in effect, which prevents creditors from collecting debts during the bankruptcy process. This may prevent foreclosures in the short term, but your lender may continue with your foreclosure once the bankruptcy is settled. However, your primary residence may be eligible for exemption under Florida’s homestead laws.
• Chapter 13 Bankruptcy: Chapter 13 bankruptcy also places an automatic stay and is typically sought by homeowners looking to save their home from foreclosure. This form of bankruptcy proposes a repayment plan by consolidating your debts into monthly payments based on your income. 

This plan will include any missed or delinquent payments on your mortgage but will allow you to avoid foreclosure and repay your mortgage over time. Chapter 13 offers longer-term protection from foreclosure with the option of having remaining debts discharged if the plan is followed properly.

In short, bankruptcy can prevent foreclosures in Florida, but there are a number of criteria to meet and qualifications to consider when using this strategy to avoid foreclosure. Every case is different, so I like to speak with each individual client to determine which course of action will most benefit their situation.

Can I Halt The Foreclosure Process By Applying For A Loan Modification?

While applying for a loan modification can temporarily pause the foreclosure process, this does not happen immediately. A temporary pause can be placed while your application is being reviewed, but the bank is not going to waste any time if you haven’t provided a complete modification package. Be sure you have gathered supporting documents such as pay stubs, tax returns, and bank statements before filing your loan modification application.

If your loan modification is approved, there are federal guidelines in place that can protect you from foreclosure moving forward. Since it is in the bank’s best interest to ensure that you are entirely qualified for a modification, they will thoroughly review your modification package. This ultimately can help to slow down the foreclosure process.

I Have A Foreclosure On My Record, Can I Ever Own A Home Again?

You will definitely be able to own a home, but you may find it more challenging to acquire a reasonable loan for your purchase. However, despite rumors that the process takes seven or more years, it is possible with a sound plan to rebuild your credit and overcome a foreclosure in two years or less. While you will experience higher rates until you have raised your credit score, this will not prevent you from receiving loans or purchasing homes in the long term.

It is possible to own a home with a foreclosure on your record, but it would be in your best interest to avoid foreclosure entirely. When you work with Dubyak Law Firm, PA, we always look at what steps we can take to protect your best interests and prevent your foreclosure.

Attorney Jeremy Dubyak is a seasoned lawyer based in Pensacola, Fl who has helped countless clients just like you navigate the intricacies of foreclosure defense law. With over a decade of experience, he is prepared to assist you in protecting your assets so that you can move forward with confidence.

Still have questions? Ready to get started? Contact Dubyak Law Firm, P.A. at (850) 266-7822 today to schedule an initial consultation.

Can I Sell My Home During The Foreclosure Process?

Not only can you sell your home during the foreclosure process, but Dubyak Law Firm actually helps clients sell their homes during foreclosures. I am a real estate agent who is working toward my broker’s license, and we work closely with other real estate agents in Florida to sell homes for our clients. 

If you do not have the necessary funds to reinstate your loan or have no interest in doing so, selling your house is most certainly the best option. This way, instead of the bank taking your home in a foreclosure auction, you are able to retain control of your home for yourself and your family until the sale. This is a wonderful aspect of owning a home in Florida.

As Long As I’m Paying For Something, Can I Avoid Foreclosure?

Foreclosure can be avoided this way, but not always. For instance, you could be foreclosed for mechanical liens, such as failure to pay a roofer or plumber. Sometimes, you will see houses for sale on auction sites from contractors or homeowners associations for unpaid dues or fees. Of course, banks and lenders also reserve the right to foreclose your property and will do so if they are unpaid. 

Some banks will accept partial payments, allowing you to pay only one month’s premium where you may owe for three. In other words, if you owe three months worth of loan payments valued at $1000 per month, the bank would allow you to remit one payment of $1000 toward your $3000 balance. However, the bank will eventually quit accepting payments until you can settle your outstanding debt and require reinstatement.

You are able to reinstate your loan up until the day of your foreclosure sale. However it is not wise to wait on this process as you may encounter issues with third party purchasers. You always have the right to reinstate, but don’t be fooled into thinking that time is not of the essence. Contact Dubyak Law Firm if you’re facing foreclosure, and we’ll help identify the proper solution for you.

What Are Some Of The Most Common Legal Struggles Homeowners Face Today?

Increasingly, homeowners are struggling with insurance-related issues. As rates rise, many homeowners forget to pay or find they lack the means to pay. Insurers are also few and far between, as many have left the state due to frequent hurricanes. This leaves many homeowners reliant on state-funded citizens’ programs for last-resort insurance.

All of these factors make it very difficult to maintain homeowner’s insurance in Florida right now. However, most mortgage agreements require homeowner’s insurance, forcing you to buy an insurance policy if you don’t already have one. These policies are often quite expensive and rarely cover your liability, as you are not even considered a third-party beneficiary to the policy.

It is not uncommon to see homeowners under this insurance quit paying their mortgage, as they’re frustrated that the bank can approve or deny their insurance claims. This is an extremely ill-advised scenario, as the bank’s failure to deliver on your claims does not entitle you to withhold your mortgage payments.

If you refuse to pay your mortgage, the bank withholds the right to foreclose. Don’t fall for the trap of thinking that you should repay the bank’s wrongdoings with your own, as this can be a costly and time-consuming mistake. In order to save yourself money and mental headspace, contact me at Dubyak Law Firm to advise you on your foreclosure. We will help you navigate your case so that you can protect your assets and your future.

Still Have Questions? Ready To Get Started?

For more information on Foreclosures in Florida, an initial consultation with Dubyak Law Firm is your next best step. Get the information and legal answers you are seeking by calling (850) 266-7822 today.