florida foreclosure law

John lost his manufacturing job six months ago in a round ofmass layoffs, and he's been unable to find consistent worksince. He and his wife had little in savings, and with every daythat passes they're getting further and further behind on theirbills.

Two months ago today, Mary's husband walked out on her and thekids. Between childcare costs and other bills, she can barelyafford to put food on the table.

Every day thousands of people across the U.S. fall deeper intodebt, often through no fault of their own. Left unchecked, thisdebt ultimately threatens their number one asset, their home,through the process of foreclosure.

It doesn't have to end there, though. There are ways to stopforeclosure, protect your credit and keep your home.

What is Foreclosure?

In most states, when you buy a home there are actually twoparties on the buying side: you (the mortgagor) and the lender(the mortgagee). You own the home, but the mortgagee holds alien on the property for as long as the mortgage has anoutstanding balance. The lien gives the lender the right toassume ownership of the property should you fall behind onpayments. That process by which the lender assumes ownership iscalled foreclosure.

All other states use a deed of trust, which serves the samepurpose as a mortgage but actually involves three parties: you(the trustor), the lender (the beneficiary), and a third party(the trustee) who holds the temporary title on the home untilthe full balance is paid. In these states, the foreclosureprocess involves the trustee selling your home when you becomedelinquent.

How to Stop Foreclosure

Contact the Lender

Absolutely the first step to avoid is to contact thelender and let them know your situation. In many cases, they canwork with you to temporarily modify payment terms until yoursituation is resolved.

Never, ever ignore late notices, letters or calls from yourlender. They would much prefer to work together with you toresolve the situation, but will not hesitate to beginforeclosure proceedings if it appears that you are unwilling towork with them to avoid foreclosure.

Redo Your Mortgage

If you're still current on your payments, or not too far behind,refinancing may be a viable option for you. Refinancingwill pay off your current mortgage and in many cases lower yourmonthly payment at the same time. It can be the moststraightforward method to avoid foreclosure.

Sell Your House

This may be the toughest route to stopping foreclosure,particularly if you still need somewhere to live, but it may bethe only way to stay out of trouble and prevent a black markfrom appearing on your credit record. If you need to sell fast,there are homebuyers in your area who will allow you to do that. They canclose in 10 days or less, or on whatever timetable fits yourschedule, and allow you to walk away with cash at closing.

Be very, very careful, though. There is no shortage of peoplewho will use this opportunity to make a profit for themselves atyour expense. To keep yourself from falling victim to thesepredators, be sure to read "We Buy Houses" Scams -- How to Spot Themand How to Avoid Them.

Protecting Your Credit

Ultimately, protecting your credit must be your number one goal.Your credit report will be with you for the rest of your life,and having a noted on it will cause problems formany, many years down the road -- problems that only time willerase. Take steps now to keep that from happening. It may bedifficult in the short-term, but the long-term results faroutweigh the alternative.