Whether you are behind on your mortgage payments or if your home is already undergoing foreclosure, the best approach for resolving this issue is paying off your debt immediately -- before your property sells or goes to auction.
For those who are already in debt, this option is rarely possible at the moment you receive a foreclosure notice. In order to minimize your total debt and losses, it is best to understand your rights and evaluate all your choices before waiting until it is too late.
What is a right of redemption?
People often discuss the Right of Redemption for borrowers. This law gives those with foreclosed real estate the right to reclaim their property. It grants borrowers the opportunity to pay off their property back taxes, mortgage debt and any other accrued costs before a foreclosure sale becomes final.
How long do you have to pay back your debt in Florida?
Many states allow mortgagors a substantial period, often ranging from weeks to months, to pay back their outstanding debt - even after the sale takes place. Unfortunately, this is not the case in Florida, since the terms of this law are extremely narrow.
According to this Florida statute, once your property goes to sale, homeowners can pay back their debt anytime before a clerk files a certification of sale or before a date as ordered by the court, the latter option occurring only in very limited situations.
Yes, the statute uses the language "right of redemption," but practically speaking, there is essentially no right of redemption period. Reclaiming your home becomes exponentially more difficult if not impossible once the sale takes place.
Even though there is usually a short period of time allotted for the court to review the authenticity and fairness of the sale, once this amount of time has elapsed, you cannot take back your property.
If you find yourself in hot water with your mortgage payments, it is even more crucial not to rely on a buyback of any kind, and address this issue as early as possible instead.
How can you minimize your losses - or prevent them?
It seems that there is much confusion about this law in Florida, and because of this common misconception or misbelieve of a mortgager's Right to Redemption, many people often wait until it is too late to seek guidance from an experienced attorney.
If you find yourself behind on mortgage payments, filing for bankruptcy may be the best choice in saving your house, and you should consider investing in the services of a qualified bankruptcy and foreclosure defense lawyer.
Not only can you minimize your debt, you can also receive proper legal guidance to help you navigate through the full extent of a tough financial situation.