4 Tips to Stop Foreclosure
When buying a home, foreclosure is typically the last thing on most people’s minds. Unfortunately, life can be unpredictable–and sometimes foreclosure becomes inevitable. For countless other homeowners who have fallen into danger of foreclosure, however, hope is not lost. There are many tried-and-true methods of stalling and even avoiding foreclosure altogether. Here are four of the most effective methods of doing just that.
- Reach out to your lender. Although lenders often settle upon foreclosure in order to recuperate a portion of the money they invested, the truth is that lenders typically lose money on foreclosures–and it is therefore in their best interest to avoid it. If you find yourself in a situation that leaves you unable to make your monthly mortgage payments, the first thing you should do is contact your lender–before any missed payments if possible–and discuss your options. Avoiding problems is rarely the best solution life’s problems, and that fact holds true in the case of financial delinquency. Depending on your situation, a number of solutions may be possible. For example, your lender may offer forbearance: an agreement by which you pay only a portion of your mortgage payments for a set period of time, before eventually returning the difference in the form of higher payments and/or a lump sum. Alternatively, your lender could simply agree to change the terms of the loan in order to make payments possible. Your odds of successfully negotiating such an agreement are higher if your circumstances are clearly due to temporary problems. (i.e. you have suddenly accrued medical bills or been laid off.) Lenders are also a bit friendlier toward first-time issues than when dealing with borrowers who have a history of financial trouble. Regardless, touching base will not hurt your situation–and it could help a great deal.
- The US department of Housing and Development offers programs intended to help distressed homeowners get back on their feet. Visit their website to learn more about your options made available through the Making Home Affordable act.
- Bide time by calling to attention unscrupulous lending practices. Oftentimes, avoiding foreclosure is a question of timing. Those who manage to bide enough time in order to gather the money for delinquent payments (or alternatively, those who bide enough time to sell their homes at favorable prices) are the ones who avoid foreclosure. One way to win yourself a bit more time is by fighting back against unscrupulous lending practices. Many lenders Unscrupulous lenders frequently sell off loan documents with little regard for their future endeavors–causing them to lose the promissory note, and, in some cases, lose legal ownership of the mortgage. By demanding the promissory note and investigating the chain of title, you may be able to win the time you need in order to escape foreclosure.
- Execute a Short Sale. Selling your house to a cash-only buyer is a transaction that can be completed far quicker than traditional sales–making it the perfect option for those looking to escape financial delinquency without foreclosure or bankruptcy. To learn more about this option, contact Blue Marble Properties today.