When you default on your mortgage, your lender will start the foreclosure process, which, if completed, will eventually lead to you being evicted from your home. Once your lender has successfully removed you from the property, it will be sold at auction with the the proceeds used to try to repay the remainder of your loan balance, lender’s fees and legal costs (very rarely is there enough left over for you to receive anything back from the equity you had built up). While most people see having their home foreclosed on as the loss of their most valuable and arguably important investment, it doesn’t always have to be the case. Here are a few ways you could actually benefit from having your home foreclosed on.
Living Rent-Free
In most places, the foreclosure process isn’t a quick one. Florida in particular is great for borrowers who are underwater since the foreclosure process could take many months or even years to complete. This could work to your advantage in several ways. First, this gives you the opportunity to save money and start building a cushion you can use to try to get yourself back on your feet and start rebuilding your credit. Depending on how you manage your money, this may give you the chance to pay off other debts that have been looming or even start negotiating repayment plans that you’ll be able to maintain.
Lenders also hate the foreclosure process because it’s expensive and usually results in losses for their business, so they’re often open to negotiations throughout the process in an effort to keep their investment profitable and keep you in your home. However, there’s still risk involved with this, and some lenders are less willing to work with you than others. There is risk involved with this strategy.
Due to the length of the foreclosure process, you could also have ample time to find better or additional employment that allows you to bring in extra income. Getting this ability makes negotiation a more attractive prospect to lenders. Knowing you’re bringing in more income and could work to continue paying off your loan is a good incentive to stop the foreclosure process and work out a deal with you.
Your Legal Options
Foreclosure is still a confusing and often frightening topic for many people. It’s easy for borrowers to fall victim to predatory lenders, so it’s important to make sure you have a Brevard County bankruptcy attorney on your side who can protect your rights and advise you on the best course of action if you’re facing the foreclosure process.
Get a free case evaluation by calling The Buchalter Law Group today at (321) 320-6088!