Alternatives to Foreclosure

There is a great deal of misinformation on the internet about alternatives to foreclosure.  When homeowners become trapped in an underwater mortgage and are facing financial hardship, they may latch on to "foreclosure alternatives" solutions touted by private companies and their banks and loan servicers.  In truth, such foreclosure alternatives are rarely a good deal for the homeowner.

Many of these "foreclosure alternatives" such as deeds-in-lieu of foreclosure, loan modifications and short sales have been offered as part of the Making Homes Affordable Program (HAMP and HAFA).  These programs have failed to help a significant number of homeowners and often place homeowners in a worse financial situation than they were in before applying for a "foreclosure alternative."

The Home Affordable Modification Program (HAMP) that was supposed to help millions of homeowners avoid foreclosure is a dismal failure.  In the past two years, only about 500,000 homeowners have received any type of modification under th program, and the vast majority of those modifications trap the homeowner in an underwater mortgage owing more than the property is worth. 

Short sales can leave homeowners in limbo when banks fail to respond to short sale offers.  Other homeowners wrongly believe that their short sale relieves them of any further liability on the loan when in fact the lender may retain the right to pursue them for a deficiency claim. 

Be wary when considering a loan modification, short sale or deed-in-lieu of foreclosure.  Almost daily, we consult with Florida homeowners who would have been much better off if they had completely avoided the HAMP and HAFA programs.  If you are stuck in an underwater mortgage and owe your lender more than your property is worth, you may be better off walking away from the loan in a carefully planned strategic mortgage default.  

Often, we can use our experience to negotiate a favorable settlement that enables our clients to walk away from underwater mortgages without further liability on the loan. Whether you want to keep your home, surrender the home but buy more time before you have to leave, or escape from a deficiency judgment claim, we may be able to negotiate a solution that works for you.

Take Control of Your Future

The Forrest Law Firm is committed to aggressively representing the interests of property owners and homeowners in the following counties:  Sarasota, Manatee, Hillsborough, Pinellas, Polk, Pasco, Orange, Seminole, Palm Beach, Miami-Dade, Broward, and other counties across the State of Florida.

If you want to walk away from your mortgage, or if you are facing foreclosure, contact the Forrest Law Firm today for your free telephone consultation!