The Legal Process Of A Florida Mortgage: What Should You Know?

The laws regarding buying a home can differ from one state to another

. Therefore, you should learn about the legal process of a Florida mortgage before purchasing a home there. Knowing the laws can help you to save money as well as to protect your rights.

Before you purchase a home in Florida, your agent has to provide you with a Real Estate Transfer Disclosure Statement. This document is prepared by the seller of the house. In this statement, everything that is included in the price must be detailed. Any extras such as appliances or alarm systems have to be listed explicitly. The document also needs to include the current condition of both the property and the house itself. Any potential hazards have to be mentioned as well.

There are laws that regulate the use of variable interest rates for real estate purchase. If you are taking out a large mortgage, you are guaranteed to get a fixed mortgage rate. You are also protected from interest charges more than one day before the mortgage is recorded. This is the case even if you received the loan amount prior to that date.

There are a variety of other laws that are meant to protect home buyers as well. For example, it is illegal for a lender to charge fees and points that are more than 6% of the total principal. Other laws protect a borrower from taking out more than they can afford.

You may be eligible for a Florida FHA loan if you are buying your first home. You may even be able to get your down payment and closing costs covered as well. There are even some additional credits available for people employed in education. Qualified home buyers may be able to get an Interest Only PLUS mortgage that allows the buyer to pay interest only for the first five years of the loan.

If you are unable to make your mortgage payments, your lender will likely attempt to foreclose on your home. If this should happen, you will be notified prior. You will have a few different options in this case. You can try to discuss the situation with your lender. You can either sell your home or try to refinance it. Refinancing can be difficult if you are not making payments and if you do not have sufficient equity in your home.

You can also attempt to fight the foreclosure process. When a foreclosure case is being fought, you are not required to make payments on your mortgage. At the very least, this can buy you some time to figure out a way to keep your home.

In some cases, it may turn out that your particular lender has not been fair in the way they have dealt with you. There have been cases where a counter suit to a foreclosure has resulted in the lender owing damages. Should you face foreclosure, you should find out as much as possible about your legal rights.

by: Harry Tucker

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