The most common method used by the banks to collect on a mortgage debt is home foreclosures.

Home foreclosures specifics differ slightly depending on state law, but the basics are the same. Florida foreclosures are usually short court proceedings, the property is sold at public auction typically in front of the court house steps.

Beyond just losing the house, homeowners may be subject to losing the equity in the home along taking a substantial hit on their credit report. It some instances the banks may even be able to obtain deficiency judgments against the homeowners. Deficiency judgments are the result of the difference between the monies owed to the bank plus court costs, attorney fees etc. and the amount collected at auction.

If the banks obtain a deficiency judgment then they may collect from the homeowners at a later time. All assets owned by the homeowners minus except property is subject to seizure including monies in banks and the garnishing of wages.

Options to Avoid Foreclosure

There are various options available for individuals facing foreclosure including the following:

• Deed In Lieu of Foreclosure
• Reinstatement
• Forbearance
• Repayment Plans
• Mortgage Modification
• Sale, Pre-Foreclosure Sale or Short Sale
• Assumption by Qualified Buyer
• Suit on the Promissory Note
• Chapter 13 Bankruptcy
  

Filing Chapter 13 Bankruptcy is most likely the most efficient method available to homeowners who have a positive cash flow put simply have fallen behind their payments.

Advantages of Filing a Chapter 13 Bankruptcy

You keep all of your property.

Disadvantages of a Chapter 13 Bankruptcy

Considering the alternatives, we are of the opinion that there is no disadvantage of filing a Chapter 13 bankruptcy.

If you are facing foreclosure and would like assistance in negotiating with your mortgage company or investors, or are considering a Chapter 13 bankruptcy do not hesitate to Contact our attorney.

We are a debt relief agency. We help people file for personal bankruptcy relief under the Bankruptcy Law.