There is no doubt that Florida was one of the states that was hit hardest during the housing crisis. While the economy has begun to recover, there are still a lot of homeowners with mortgage loans that are considered underwater, where the market value of their home doesn't cover the outstanding balance on their mortgage loan.
In recent years, many Florida residents have found themselves in the unfortunate position of potentially losing their homes to foreclosure. This process can be confusing and overwhelming, especially where the foreclosure comes about through circumstances beyond the control of the borrower.One 57-year-old woman in another state spent more than two years attempting to avoid foreclosure. She has made telephone calls, completed forms, protested her payments and even had meetings with the bank. However, her efforts were in vain. The bank sent the woman a letter that purported to offer relief yet wanted to increase her payments by more than $200 per month, which is not a practical solution for a grandmother struggling to make ends meet. After 12 years in the home, the woman still has not received a reasonable mortgage modification and now faces foreclosure.
There are signs that the economy is improving, whether it is fewer foreclosures, a lower unemployment rate or less consumer debt. There is still a long way to go. Homeowners are still struggling to pay their mortgages and keep their houses. There are still those who have already lost their homes because of a faulty system.
We have written many posts in this blog about individuals who have resolved their financial issues through a bankruptcy filing. But what happens after a Chapter 7 or Chapter 13 bankruptcy is complete? Many believe that they do not have any options when it comes to either purchasing residential property or refinancing an existing loan. This however, is not always true.