Rule Modifications On Florida Foreclosures — Understanding What These New Rules Mean For Homeowners
Numerous homeowners within the Florida State who are dealing with foreclosure issues may be in the position of believing that the acquisition of preliminary loan modification deals from their lenders will be able to spare them from having to lose their homes due to foreclosure.
However, the latest rules which have received approval from Fannie Mae provide lenders with the power to push through with proceedings on cases which have mortgage payments left unsettled for over 120 days.
The only time such homeowners are considered to be safe would be when they are able to pay their mortgage payments on a regular basis, which does not usually take place until after a permanent loan modification has been made active.
Early this year, Fannie Mae had made orders to lenders to refrain from beginning foreclosure proceedings on homeowners who have not exceeded the 120 day limit on their due payments. In place for such proceedings, lenders should first be able to provide homeowners with loan modifications or some other alternative solution.
But homeowners who have gone past the 120 day limit have serious issues to face. Lenders are free to push through with a system called dual tracking on such cases which means that homeowners who are struggling with their due payments may be placed under a trial modification problem as their case is being handled in court in an attempt to repel the possibility of foreclosure.
With the new backing system set by Fannie Mae, lenders will not be able to call off any given Florida foreclosures until the homeowners can prove their ability to settle monthly payments which are cheaper than initially agreed. The reason behind this is to prevent Florida foreclosures from having to take place. However, as much as this may be the case, there are certain proceedings that require the proceedings to take place for obvious reasons.
Lenders are granted the right to lay down stricter agreements with individuals whose loans have become delinquent. Sadly, there are thousands of homeowners in Florida whose loans have ended up in such a condition, making Florida the number one state when it comes to homes under foreclosure with approximately 150,000 mortgage cases which have been delinquent for over 90 days during the first quarter of 2011.
In 2010, numerous homeowners have made claims on lenders that have pushed through with foreclosure proceedings despite having gone through the acquisition of preliminary loan modification terms. However, as mentioned above, such terms do not necessary spare them from foreclosure. Instead, these terms only buy them more time to prove to their lenders that they have the ability to make their due payments on time.