How to Avoid Foreclosure on Your Home
If you’re a homeowner and have found yourself on the cusp of foreclosure, then it might be safe to say that you’re facing financial hardships. If this is true, then you’ve most likely let panic set in already. Having a foreclosure in your name is not something that anyone wants, so it’s understandable if you’ve begun to worry.
However, if the foreclosure hasn’t happened yet, then there’s still hope. That’s right, it’s time to stop worrying and start putting a plan into action. Knowing some simple tips on how to avoid foreclosure is the optimal starting place to keep this horrible event from happening.
Not sure what steps to take? Discover how to avoid your home falling into foreclosure and sell it quickly by following some of these tips listed below!
1. Discussing a Forbearance
The first thing that you can do to avoid foreclosure is to discuss a forbearance. A forbearance is when a lender agrees to hold off on taking action against you. They agree to give you extra time to make a late payment.
During this time, you and the lender can decide on a payment plan that you can work with. This is the perfect time to figure out your finances and what you’re able to afford to get you by until you’re able to sell the house.
2. Schedule a Repayment Plan
A repayment plan is when your lender allows you to take the total of missed payments and spread it out across a period of time for you to pay it back. For example, if your normal mortgage payment is $800, then your lender might allow you to add on an extra $75 each month.
This will continue until you’re caught up on your missed payments. It’s a great option for those who suffered from an emergency and we’re able to make a few payments but are now able to catch back up.
3. Change the Terms of Your Loan
Changing the terms of your loan is a good option if your loan is an adjustable one. In this case, your lender might decide to freeze the interest rate on the loan for you before it can get any higher. The lender might also decide to lower the interest rate for you to something that’s a bit more manageable.
Another change that the lender can make to your loan is to extend the amortization period. This is how many months the loan is spread out.
4. Consider Refinancing
Refinancing is a great option for those who have sufficient equity and are looking to lower their monthly payments on their mortgage. When refinancing, your lender will increase the number of months left to pay your loan. This spreads your payments out for a longer period of time, making them lower each month.
With lower payments, you can avoid falling into debt or foreclosure before it even happens!
5. Sell Your Home
Another option that you have is to sell your home. If you’re reaching foreclosure or are already in foreclosure, a good way to get out of it is to sell your house fast for cash. But your best bet is to try to tell your house before it even enters foreclosure.
Rather than having an appraiser come out and nitpick every detail of your home, you can have The Equity Pros come out and do a quick evaluation of the house. Going this route leads you to a quick appraisal process as well. Once this process is complete, you’ll be given a cash offer.
If you accept the cash offer, you can then decide on what date would be best to set as your closing date and avoid the foreclosure altogether!
6. Think About Filing for Bankruptcy
Once a notice of default has been filed, you don’t have as many options to choose from. Although bankruptcy might not sound like the ideal option for you, it might be the best. Filing for bankruptcy will put a stop to any foreclosure actions that are currently taking place.
The best way to go through with this option is to contact a lawyer who has experience dealing with similar situations and knows what all of your possible options are. Do keep in mind, however, that a bankruptcy won’t stop foreclosure in full. It will postpone it for a certain amount of time though.
7. Look Into a Short Sale
A short sale is another option to choose from once a notice of default has been filed. A short sale happens when the amount that you owe on the house is more than what the house is currently worth, and you become a candidate for a short sale.
Do keep in mind that this does affect your credit to some extent, but it’s much better than having a foreclosure affect it instead. Speak with your lender to see if you qualify for a short sale and if the lender agrees to it as well.
Learn How to Avoid Foreclosure Before It’s Too Late!
Are you facing financial hardships that might lead you into a foreclosure? Don’t let the thought of foreclosure bring you down. You have options!
Keep this list in mind when wanting to know how to avoid foreclosure and call us today at The Equity Pros! We’ll work with you to buy your house for cash fast before the foreclosure can happen!
We’re happy to answer any questions that you might have, so don’t hesitate to contact us as soon as possible.