With all that has transpired in the past 18 months or so, it’s no wonder that foreclosure cases are on the rise throughout the US. This is especially true in Miami Gardens and many other South Florida communities. Furthermore, the courts are processing these cases much quicker, thereby complicating matters for homeowners even more. At the Arcia Law Firm, we’ve seen disastrous consequences for homeowners who could’ve saved their homes if they had hired a Miami Gardens foreclosure defense attorney.
Reasons Why Homes Go into Foreclosure
When someone purchases a home, the bank or financial institution that lends them the money puts the prospective buyer through a rigorous process to ensure that they can repay the loan. Roughly 70% of all mortgages are 30-year notes. Sadly, unforeseen circumstances have a way of happening and a homeowner’s financial situation can change dramatically. Many homeowners found this out during the past 20 months since the onset of the COVID-19 pandemic.
As a result, many homeowners found themselves 3 or more months behind on their mortgage payments. As of this June (15 months into the COVID-19 pandemic), nearly 2 million Americans were still that far behind on their mortgage payments, more than the number of homeowners that fell behind in the 2010 housing market crash. However, a global pandemic is not the only circumstance that can cause your financial situation to change dramatically. Other reasons for foreclosure include:
- death of a partner or spouse who was the primary income contributor
- excessive debt, especially credit card debt
- job loss
- medical emergencies or illnesses that create an excessive amount of debt
- natural disaster
- reduction in income
- relocating without being able to sell your home
- unexpected large expenses
No matter what the reason for this occurring, homeowners will need a sound Miami Gardens foreclosure defense. And that’s where the Arcia Law Firm can help. Since establishing our practice, we have helped hundreds of Florida homeowners avoid getting foreclosed on.
The 3 Types of Foreclosure
In most instances, foreclosures result when a homeowner stops making their monthly mortgage payments and they default on their home loan. What most people don’t know is that 3 types of foreclosures can occur – judicial, non-judicial, and strict foreclosures. Here is how they differ from one another:
- Judicial foreclosures – when a lender files a lawsuit against the homeowner, a court proceeding typically ensues. At this time, the court orders the home to be auctioned off or sold.
- Non-judicial foreclosures – this type of foreclosure typically happens outside of the courtroom when the lender informs the homeowner that the property will be sold after 30 days if they don’t get caught up on their monthly payments.
- Strict foreclosures – in a strict foreclosure, the lender takes the property without an auction or sale. Although this type of foreclosure involves a court proceeding, they aren’t allowed in most states.
Before letting your home go, keep in mind that a foreclosure can lower your credit score anywhere from 85 to 160 points, depending on certain factors such as your previous credit history. It is best to work with experts to understand the loan progress.
A Miami Gardens foreclosure attorney from the Arcia Law Firm can help you save your home and the memories you’ve built while living in it. For more information about a Miami Gardens foreclosure defense or to speak with a Miami Gardens foreclosure defense attorney, call the Arcia Law Firm today at (954) 437-9066.