Stay in your home and avoid foreclosure.
If you are behind on your mortgage payments there are some things that you can do to avoid foreclosure. We list those options here for your consideration.
1. Contact your lender. If you’re not in contact with your lender, then pick up the phone and make contact immediately. Speak to a mortgage representative and obtain this person’s name, title and contact information including a phone number and email address. Be proactive — you want your lender to know that you’re doing everything possible to keep up with your payments.
2. Understand the lender’s perspective. Your lender may be anxious that you’ve fallen behind on payments, but taking foreclose action is not this professional’s top option. Keeping you in your home is. By making and maintaining contact with your lender, he will know your intentions. Lenders are in the business of managing money and are loathe to manage a foreclosed home.
3. Speak with an attorney. If your financial picture is especially dire, you should contact an attorney to discuss your options. You may be able to file for personal bankruptcy and keep your home. Under a bankruptcy arrangement, your nonsecure credit may be expunged, giving you enough money to make payments on your home. Your credit rating will, however, be trashed.
4. Keep track of your correspondence and phone calls. Use a journal to track your contact with your lender, your attorney and anyone else involved in the loan process. Write down important dates including your loan payment due dates, the dates legal notices were received and other information related to your loan. Document everything — leave nothing to chance.
5. Make an offer. If you have the ability to make loan payments, discuss with your lender your options. He may agree to a loan forbearance, where your missed payments are added to your loan at the end of the term. Essentially, you’re given a clean slate to begin making payments again. Your lender may also agree to a lower interest rate. Your chances of receiving assistance, however, are based largely on your ability to make payments.
6. Learn about loan restructuring. Besides forbearance, your lender may agree to restructure your loan. This may be possible if you have equity built up in your home, whereby your lender may issue you a new loan with better terms. Missed payments can be added to your loan, enabling you to start fresh with a new loan.
7. Consider FHA assistance. Some homeowners may qualify for one-time assistance from the FHA Insurance Fund to bring a mortgage up to date. If you are behind on your mortgage payments by at least 4 months, but no more than 12 months, you may qualify for a promissory note to take advantage of this offer.
8. Sell your home. You may find that the options above cannot help you. In this case you can list your home for sale and if you are able to successfully conclude a deal, you may be freed of this financial obligation. Talk with your attorney or a financial advisor about this option. Learn whether you’ll be responsible for the loan deficiency if you are involved in a short sale.
You have several good things going for you if you are seeking to avoid foreclosure. One, bankers are willing to work with borrowers that demonstrate initiative. Two, you’re financial position can help too if you have the means to make payments. Three, if your local housing market is in recovery, you may be able to sell your home and pay off your financial obligation. Take action now and you just may save your home.
- Bev Rose
- Kindle Edition
- Tamera Aragon
- Kindle Edition
- Used Book in Good Condition
- Laurence Adams Malone
- Publisher: Betterway Books
Last update on 2020-03-20 / Affiliate links / Images from Amazon Product Advertising API