Mortgage Modification: Time is Not on Your Side

If you can no longer make your mortgage payments but you don’t want to give up your house, a loan modification may be a viable solution. Under the government’s Home Affordable Modification Program or HAMP, you can request your lender to restructure your loan so you’ll end up paying smaller monthly installments.

Before Foreclosure

Though foreclosure is something no one wants to face, it helps to understand the foreclosure process in Florida—especially since much can be done before foreclosure to better your outcome.

Missing One Payment

The road to foreclosure starts when you miss one payment. If you want to avoid foreclosure altogether, it is important to update payments as soon as possible. You will incur a late fee due to your missed payment, so be sure to take this into account.

America’s Seniors More at Risk of Foreclosure

Although the past U.S. housing crisis left plenty of people struggling to keep their homes, none were as affected as the American senior population. A 2011 survey identified homeowners over 75 as having the highest foreclosure rate for people over 50. According to a report from the Consumer Financial Protection Bureau, the percentage of seniors with mortgage debt increased from 22 percent in 2001 to 30 percent a decade later. In that same time period, the rate more than doubled among those aged 75 and older, from 8.4 percent to a staggering 21.2 percent.

Loan Modification: Best Done Sooner than Later

When it comes to saving a home from foreclosure, one of the best solutions you can use is to apply for a loan modification. Think of it as a backup plan that you can fall back on. It’s possible that you won’t get the verdict you want, which is to retain your home, out of your foreclosure case. Your foreclosure lawyers will likely advise you to start talking to your lender about loan modification while they defend your foreclosure case.

Mortgage Modification Pitfalls

If you’re having problems paying your mortgage bills, a load modification might sound like a really great idea. However, homeowners should be aware that mortgage modification is tricky business dotted with many potential pitfalls.

First, while laws have been changed to force lenders to respond to homeowners within 10 days after they put in a modification request and to provide them with an answer within 30 days, your lender may rule your application incomplete and stretch out the process. Thankfully, a law preventing dual-tracking—the act of processing a foreclosure while a loan modification request is pending—has been put in place to protect homeowners.

A Brief Outline of the Florida Foreclosure Process

Foreclosure is an all too familiar reality in the Sunshine State, with some 1.36 million properties facing repossession in 2013 alone. If you’re one of the many homeowners who may be facing foreclosure, you’re first reaction may be to panic. However, the best way to face this challenge is to arm yourself with knowledge. Below is a brief timeline of the foreclosure process in Florida:

Molon Labe: When Someone Comes to Take Your House

Molon labe—they may seem like two unassuming words, but they carry huge impact. These words are reportedly what the Spartan General-King Leonidas said in reply to Xerxes, the Persian Emperor, when the latter demanded Leonidas and his 300-strong army to lay down their arms and surrender. In English, molon labe means ‘come and get it’, a classical expression of defiance.

Molon labe has been used many times since, becoming the signature battle cry for people who wage war against oppression and refuse to be trampled by men who would deprive them of their God-given right to live free. For homeowners facing foreclosure, molon labe is not only a battle cry—it’s a state of mind.