Florida homeowner looking to modify, faces threat of foreclosure

Florida homeowner looking to modify, faces threat of foreclosure

Florida is known for being near the top of the list when it comes to foreclosed homes. The unemployment rate may have begun to decline, but foreclosures have not dropped noticeably. The threat of foreclosure looms especially high for those who are still unemployed or struggling to catch up on the bills that piled up during the period of unemployment. One Florida man recently discovered just how real the problem is, even while in the midst of attempting to find an alternative.

The man lost his job, and his house was foreclosed. He attempted to sign a loan modification, but his paperwork was transferred from one mortgage servicing entity to another. One reportedly approved the modification, and the next rejected it -- all apparently based on the same original modification paperwork.

Since then, paperwork was lost. The bank stopped responding to calls. An investor purchased the home and offered it to the man, who still considered himself the homeowner, as a rental. The rent costs more than what the man would pay based on the loan modification payment. The man, citing bank fraud, has been pursuing legal action in regard to this matter for years.

In today's economy, many unemployed Florida homeowners are not able to keep up with their monthly mortgage payments. Sometimes, many months pass without them being able to make a single payment. In these types of situations, the homeowners are vulnerable to the threat of foreclosure. Loan modifications or other debt relief alternatives may be an option, but as at least one family experienced, sometimes they are not. Families facing these issues will likely benefit from gaining an understanding of their rights and responsibilities under applicable state and federal laws.

Source: The Palm Beach Post, Desperate North PB man posts video about pending eviction, Kim Miller, Oct. 21, 2013