Foreclosure: Details and Ramifications

Causes of Foreclosure

Purchasing a home is a huge event in a person's life—it is very likely one of the most significant purchases a person will ever make. Along with the joys of owning a home also come responsibilities and sometimes hardships. The cost of not only buying a home, but also maintaining and updating it, can become a burden.

Unless a person is able to pay for a home entirely in one payment, he or she will usually have to take out a loan from a bank or a lending institution. The loan specifies the amount of monthly payments which the new homeowner will be required to pay. It also gives a timeline of how long the payments will be required until the home is paid off. Making monthly payments can be difficult, particularly if unforeseen circumstances arise in a person's life which drain away the finances. Other times, as life continues to fill up with activities and responsibilities, a person can lose track of their budgeting plan and run into problems trying to make each payment on time. There are a number of reasons why a home goes into foreclosure.

Ways to Avoid Foreclosure

Foreclosure occurs when a person either cannot or does not make their monthly house payments. One missed payment is not enough to incur the penalty, but the bank is notified of the missed payment. If the homeowner continues to miss payments, the foreclosure process is enacted. The first thing to determine at the beginning of the foreclosure process is whether or not the outstanding debt can simply be paid off. If so, the foreclosure process is stopped. If that is not the case, it may be wise to seek the help of credit counselors. Some people prefer simply to talk to someone from the bank or lending institution or to speak to the lender's Loss Mitigation Department. Someone from the Loss Mitigation Department may be able to offer suggestions concerning a potential cut in interest rates—a cut which could dramatically help the homeowner. Another common way that people try to avoid foreclosure is by refinancing the mortgage or taking out a new loan. The homeowner may also try to sell the home. This route can be difficult because the homeowner does not have many options or much room to be flexible. However, in the event that a new buyer will agree to the homeowner's price, selling the home is more preferable than allowing the home to go into foreclosure.

At The Edwards Law Firm, you can be assured of aggressive and dedicated defense. We serve clients in Sarasota, Florida, and our experience will be an asset to you as you plan for your future. We are certified by the Florida Bar and are Avvo rated. A Sarasota foreclosure atorney will help you and defend your rights.

Do not hesitate to contact a Sarasota foreclosure lawyer from the firm today.