Facing the potential loss of your home can be overwhelming. This is something that can create lots of stress in your life and the possibility of a foreclosure is inevitable to cause you anxiety. However, you may have other alternatives that can be financially helpful in a difficult time. Just because you can’t make the current mortgage payment doesn’t mean that you have to lose your home. It’s ideal to consult with a Miami foreclosure lawyer that will provide you with legal advice that you may find extremely useful at this time.
Solution #1: Refinance
If you have a positive track record with your lender and a good credit rating, you may be capable of refinancing your home. This can potentially allow your monthly mortgage payments to decrease if you can be guaranteed a lower interest rate than what you currently have.
Mortgage refinancing can be complicated, and you’ll want to know this in advance. In order for you to have been successful in your goal of lowering your monthly mortgage payment, your Miami foreclosure lawyer will recommend that you meet the requirements below:
- You have built up some equity in your home, and most lenders suggest this is at least 5%.
- You should have an excellent credit history and a high credit score.
- You will need to fill out a loan application even if you’re only refinancing.
- In many states, you will need to have a professional appraisal of your property.
Solution #2: Bankruptcy
Your foreclosure defense attorney in Miami may recommend that you file for bankruptcy instead of getting into a foreclosure situation. Keep in mind that you will have to meet many requirements and one of these includes passing the means test. This will indicate to all of your lenders that your income is less than your expenses.
However, keep in mind that being successful in filing for bankruptcy will cause your credit score to drop significantly and this can take years to rebuild. Many homeowners that are faced with a challenging time still feel that this may be the ideal solution when house payments simply can’t be made any longer.
Solution #3: Rent
You may be able to find a much cheaper place to live and hold on to your house. This may seem complicated, but it’s not. Simply find a tenant to rent your home and this will all you all of your mortgage payments to be made for you.
Being a landlord for a specific amount of time can prevent you from receiving a letter of default from you lender when you have missed a payment or more. Just be sure to have a rental contract in place to protect your best interests at all times.
You don’t have to give up your home and all that you’ve spent your life working towards having. Take the time to look at other alternatives and meet with a Miami, FL foreclosure lawyer to help you make the right choice today!