Whether you’re in foreclosure or afraid you might end up there, now is the time to get in action. If you’re in trouble and you can’t pay your mortgage, you need solutions. Going into foreclosure is undoubtedly scary.
Look, I understand, things happened that you didn’t plan for and now you’re in trouble. Money is tight, and you can’t pay your mortgage. This is a serious problem as you and your family need a place to live! While foreclosure does take a while and you can pretty much live in your home rent free during that period, the time after foreclosure is a nightmare.
Foreclosure destroys your credit rating making it near impossible to find a decent place to buy or rent. More importantly, foreclosure is a scenario where the only party who gets anything worth talking about is the bank.
It is also not unheard of for employers to run a credit check before they hire you. Being in debt is a disease and it affects every area of someone’s life.
Enough of this stuff, most of us know how bad things can get so we’re going to try and avoid foreclosure at all costs. Here are some options that made a huge difference on homeowners when facing Foreclosure:
1.) Get Help. Ironically, the first step to helping yourself is to ask for help — but not from the government. If you are facing foreclosure, you cannot — must not — go through the process alone. Just as you had a real estate agent and a title attorney who helped you get into the home, you need pros who can help you stay in it.
2.) Lower your payment and refinance your Mortgage. Not only is refinancing a great idea but your can also refinance at a longer term. If you refinance to a lower rate and reset your loan term to 30 years, you could stand to significantly reduce your monthly payment.
3.) Refinance your other debts. Sometimes when you can’t pay your mortgage it isn’t because your mortgage payment is too high in relation to your income, but you are being strangled by other debt.
4.) Reinstating the Loan. You might have a right under state law or terms of your mortgage to reinstate (get current) on your loan within a certain period of time after your default.
5.) Short Sale or Deed in Lieu of Foreclosure. To avoid foreclosure, you may apply for a short sale or deed in lieu of foreclosure.
Short sale. A “short sale” is when a bank agrees to let the homeowners sell their home to a new owner for less than the total mortgage debt. If your mortgage is “underwater” (you owe more on the loan than your home is worth), then a short sale might be a good way for you to avoid a foreclosure.
Deed in lieu of foreclosure. In this type of transaction, the lender agrees to take a deed to the property instead of foreclosing.
6.) Bankruptcy. Bankruptcy stops foreclosure dead in its tracks. Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing collection activities
7.) Life Style Cutbacks. Last but certainly not least, we need to discuss your spending. You should be budgeting, looking for ways to say money every day and focusing on stopping extra spending.
Ultimately, getting a notice of foreclosure in the mail —or just having a gut feeling that foreclosure is coming –isn’t the end of the road. Look into your options, and don’t wait to ask for help if you need it. Consider to talk with a Real Estate again for options.
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