Are you behind on your mortgage payments and worried about foreclosure? If so, you may be feeling scared and overwhelmed. But understanding your situation better can help ease your nerves. So, this article is going to answer your questions about foreclosure and hopefully give you some peace of mind.
When you are in danger of being foreclosed on, don’t procrastinate. Immediately research your options. Making the right choices sooner rather than later can make all the difference. Let’s face it, it’s better to fully understand your financial standing so you can consider other options before the foreclosure sets in.
In some cases, you can file for bankruptcy to stop a foreclosure, or sell your house as-is, but the timeline for this varies by state. So, let’s answer a few questions in order to answer your main question – when is it too late to stop foreclosure?
How Long Does It Take For A Foreclosure?
According to ConsumerFinance.gov, the legal process for a foreclosure cannot begin until you are behind on your mortgage over 120 days. After this time period, your loan servicer will begin the legal process in which the amount of time you then have will vary by state. Yet, this is not always the case.
Some states have what’s called “judicial foreclosure.” This means the case will need to go in front of a judge before the property officially no longer belongs to you. However, in other states, there are nonjudicial laws. Nonjudicial laws allow the process to go faster for your lender. Some examples of states that have nonjudicial laws are Texas, Arizona, and California. In Texas, a foreclosure can occur in as few as 60 days.
How Long Is the Foreclosure Process in Florida?
Florida has judicial laws in place when it comes to foreclosures. So generally, depending on the court’s schedule in your immediate area, it can take anywhere from 180 to 200 days to complete a foreclosure if it’s uncontested. However, the process can be delayed when a borrower contests the action, files for bankruptcy, or seeks adjournments and delays of hearings.
Ways to Stop A Foreclosure
If you want to stop a foreclosure, you may have a few options. The method that’s best for you will depend on exactly what your end goal is. If you are trying to keep the home and save your credit, your best bet is trying to work with the lender. Here are a few other options you can consider:
- Bankruptcy: Chapter 13 and Chapter 7 bankruptcy will both halt the foreclosure process. However, there are differences. Filing Chapter 13 helps you restructure the debt and keep your house. Alternatively, Chapter 7 won’t help you keep the home, but it will stall the foreclosure process and give you a few months to make arrangements.
- Modify Your Loan: If you can begin making payments immediately, you can work with your lender directly to modify your loan.
- Sell the Home: During pre-foreclosure, you can try to sell your house. But remember, you will have to pay back the late payments from the profits of the sale. Also, you must sell before the house is officially in foreclosure. A short deadline may mean selling a house as-is.
Selling a House As-Is
If you are concerned about foreclosure, your best bet may be to sell your home as-is. At Tropic Coast Homes, we purchase houses that are in pre-foreclosure. So, if you currently own a home in Southwest Florida and are facing foreclosure – contact us today and let us help you before it’s too late to stop the process! At the very least, we can present you with an option to fall back on.