The housing crisis of a few years ago left millions of homeowners underwater. When the bubble burst, prices went down, in Florida and across the nation. And sometimes they went down far below what homeowners owe on their mortgages.
When a family income is reduced by the loss of employment, underemployment or an unforeseen increase in medical expenses, they can end up getting behind on their mortgage payments. And while bankruptcy is one way to halt a foreclosure, a mortgage modification can also help a person avoid foreclosure.
While nothing is definite at this point, the Federal Housing Finance Agency is considering a proposal that would help underwater homeowners who have filed for Chapter 13 bankruptcy.
These days many Florida homeowners own homes with mortgages that are underwater, meaning that they owe more on their mortgage than the home is worth. And while this is tough for any homeowner, many couples who are underwater and facing divorce, are also wondering what their options are. It turns out, they are much the same as many others also facing mortgage problems.
With bills coming in from all directions, and not enough money to pay them all, many are now deciding to pay off their monthly credit card bill instead of their mortgage. According to TransUnion, before the recession 37 percent of people would make credit card payments before a mortgage payment. Now that number has shifted with approximately 50 percent of those consumers who are in default on a mortgage loan still making credit card payments on time.
Many Florida homeowners are currently facing - or soon will be facing - foreclosure. In many of these cases there are options available, including attempting to obtain a mortgage modification, which can be particularly helpful to those who are "underwater" on a home mortgage.
Many Florida homeowners are finding themselves in tough situations. They bought homes in 2005 and 2006 that were once deemed to be good investments, but now those homes have drastically decreased in value. This has resulted in many people owing more than the actual value of their homes, but not being able to qualify for a mortgage modification.