Every state has different laws on foreclosure. In the State of Florida, you have only twenty (20) days to respond to a foreclosure notice. That is why it is imperative that you hire an experienced attorney that can help save your home or at least allow you to reside in it for another year if necessary.
Almost all mortgages in the State of Florida have the right of “reinstatement.” This means that, if at any time during the foreclosure litigation process the borrower comes up with the money for the late payments or can make a deal with the bank to cure late payments, legally the bank must dismiss the foreclosure action.
Today, many homeowners are unable to meet their monthly mortgage payments as low introductory rates (sub-prime) turn into the regular monthly interest rate (primary). As a result of the housing market crashing, many properties are no longer worth their original costs, leaving homeowners stuck with homes worth less than their actual mortgages. These have been labeled “underwater” homeowners. More than 15 million people are lumped into this category.
To turn things around, President Obama and financial delegates have come up with a foreclosure rescue plan to help the unemployed and “underwater” homeowners remain where they are and help stabilize the real estate market. The plan is to reduce the principal, rather than reduce interest payments or give other forms of aid. Mortgage payments will be cut to no more than 31% of monthly income for 3 to 6 months. Mortgages will also be reduced to reflect the current property values. Then the homes will be refinanced into the Federal Housing Administration (FHA).
The requirements to qualify for Obama’s Mortgage Rescue Plan include:
-Having secured your mortgage by January 1, 2009
-Having a primary mortgage of less than $729,500
-Must live on the property
-Must fully document income with tax returns and pay stubs
-Sign a financial hardship statement
-Go for credit counseling if total household debt totals more than 55 percent of income
Several issues have complicated the execution of this plan: namely, the cooperation between banks and investors. Because investors acquired most mortgages as security bundles during the housing boom, many are not willing to go lower. The banks and investors must agree and approve all loan restructurings for this plan to be successful.
To learn more about Obama’s Mortgage Rescue Plan, visit:
http://www.orlandosentinel.com/classified/realestate/foreclosure/orl-foreclosures-foreclosure-laws-story,0,5000373.story
http://www.neighborhoodlink.com/article/Homeowner/Obama_Loan_Mod_Plan_Explained
http://www.cnbc.com/id/2951098/New_Mortgage_Plan_Who_Qualifies_and_How_It_Works
http://www.washingtontimes.com/news/2010/mar/27/obama-foreclosure-plan-givesloan-break-jobless/
http://money.cnn.com/2010/03/25/news/economy/foreclosure_prevention_unemployed_underwater/index.htm
Many people feel extremely overwhelmed when they get sued for foreclosure–they move out of the house or sign the house over, not knowing that by hiring an attorney and fighting this action it is very possible to save the house, even without filing bankruptcy. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
-Timothy Kingcade
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