Florida Foreclosures
Florida foreclosures are happening so much faster than many other places in the country. Did you know that it’s been reported that there were 84,868 home foreclosures in the United States during October 2008? That’s a 25 percent increase over last year’s numbers (foreclosures in October 2007). It also being reported that one in every 452 housing units in the U.S. received a foreclosure notice in the month of October. That’s staggering and scary figures if you’re one of the people in trouble. If you’re investing in foreclosures, it’s a buyer’s market.
Where do Florida foreclosures fit into that picture? At last reporting, Florida was one of the states that’s been hardest hit; and they expected it might continue to climb higher.
These are just the more recent numbers on home foreclosures in the U.S. Aside from some efforts to come up with some form federal or state-initiated relief, there is no indication that the number of home foreclosures will decrease dramatically in the next few months.
But just what is a foreclosure?
Foreclosure is when a lender repossesses a piece of property to help pay off the mortgage of that property. The repossessed property is auctioned off and the money earned is applied to the outstanding balance of the mortgage. When the piece of property happens to be your family’s home, foreclosure clearly is an ugly word.
Foreclosure normally happens when the mortgage borrower defaults on his or her payments, and when there is a violation of a major policy or regulation applicable to the mortgage. The borrower is usually issued a notice of default when he or she misses to make three consecutive mortgage payments.
Note that there are two types of foreclosures. One type is a strict or judicial foreclosure. It is when the property is repossessed and auctioned under the authority of a judge, county sheriff, or any other county official.
Another type is a non-judicial foreclosure. This occurs when the property is auctioned without the aid of a judge, county sheriff, or any county official and after a letter of default is issued to the borrower-property owner.
The notice or letter or of default informs the borrower that unless payment is made on a specific date, the property will be auctioned. To many struggling homeowners, a notice or letter like that will surely sound like it is the end of the world. But it is not.
Are you facing a Florida foreclosure? There are still several things that you can do to avoid the foreclosure. These include making new arrangements with the lender, refinancing, or even declaring bankruptcy. Remember that lenders are normally not happy foreclosing properties.
Most lenders would prefer that you be able to keep your home and continue making payments to them. Putting up a property on auction entails a lot of work, time and money and they would prefer to avoid that. Talking to them is really a good idea.
Some lenders are willing to waive some penalty fees in order to pay your unpaid mortgage more easily. Some are willing to allow you an extended time to allow you to find enough money to pay your dues. Still some others are willing to allow you to refinance your existing mortgage without need of detailed and cumbersome procedures.
Finally, there is also the option of selling the property in order get enough cash to pay off the mortgage and to transfer to a new home. This can be a good option for families who want to start all over again. Whether you’re in California, Texas, New Jersey, or Florida foreclosures are becoming all too current trend.
Originally posted 2008-12-13 12:37:10. Republished by Old Post Promoter
