Florida residents were given a grace period to avoid foreclosures and evictions during the coronavirus pandemic. However, this is only a short term solution, and people who are behind on their mortgages may experience significant troubles going forward. Local news for north Florida reported on an extension for homeowners, along related economic problems that are likely to emerge.
Governor announced an extension to assist homeowners but it only lasts a few weeks
In May of 2020, Governor DeSantis announced that the restrictions on banks and property owners looking to bring evictions and foreclosure proceedings would be extended to the beginning of June of the same year. This was done during a news conference when the governor made an appearance in Miami Dade County. However, as lockdowns and business closures related to the pandemic began to end, homeowners should be aware that they will be expected to pay on their mortgages in the near future.
The initial order suspending foreclosures and convictions had been put in place on April 2nd. A report from just days before the announcement said that over 200,000 first time unemployment claims were filed in Florida that week. This situation with so many unemployed Floridians and businesses who may never reopen after the coronavirus shutdowns can possibly lead to a disastrous increase in foreclosure filings.
Getting help through a repayment program
Many mortgage providers and lenders have started to offer borrowers plans that help them catch up on missed payments. Some of these programs give a timeframe of 6 months to a year to pay the money that is owed. It is important to get in touch with a lender and ask for assistance immediately after falling behind. Due to the severity of job losses during the pandemic, many mortgage providers realize it would be unrealistic to attempt to foreclose on mass amounts of homes all at once, and it is better for the economy to work with borrowers. This is especially true when millions of borrowers around the country were forced out of work due to no fault of their own.
What to do if your lender brings a foreclosure case against you
It is recommended to get help from a lawyer as soon as possible if your lender is already starting to file a foreclosure case. There are some defenses available. Poor lending practices can sometimes lead to a home being less valuable than the mortgage on the property. A forbearance might be available to make amended payments for several months to make the loan current again.
These lenders can also essentially bully a borrower who is unfamiliar with the law and make unrealistic demands. Your lawyer can make sure that what the lender is telling you is true and offer alternatives to their methods of keeping your mortgage current. This can include loan modification or other means.
Speak with a Destin foreclosure attorney near you
There are local lawyers in north Florida who dedicate their practices to assisting people who are facing a foreclosure. To get help immediately, contact a professional at ASG Legal.