Are you facing foreclosure? Foreclosure means you have missed several mortgage payments in a row, and your mortgage lender is trying to recoup their loss by forcing you to sell your home. If you are facing foreclosure, try getting control of your situation with one of these methods.
- Talk with Your Mortgage Lender - Your lender isn’t out to get you, they just need you to hold up your end of the original agreement. You may be able to save your home just by having an honest conversation with your lender. If you have fallen on hard times, there are three ways they can help you get back on track:
- Mortgage Forbearance - You can create an agreement with your lender to pay back the amount due within a certain timeframe. This usually occurs when you explain why you missed the previous payments and why you have had a temporary setback. As long as you agree to bring the account current, the lender will agree to stop pursuing foreclosure action.
- Repayment Plan - You agree to start making regular monthly payments plus a portion of the outstanding balance. This may be a more difficult option if you are struggling to make the monthly payment as is.
- Loan Modification - If you can’t make the monthly payments and can’t bring the loan current, you aren’t out of luck. You can ask to have your loan modified and adjust it to your new financial situation. This can include:
- Extending the term of your loan
- Lowering the interest rate
- Adding the missed payment to the existing loan balance
- Short Sale - Sometimes known as a preforeclosure sale, a short sale is an option agreed upon by the lender and borrower to sell the home for less than what is owed on the mortgage. Foreclosures are a time-consuming and expensive process for the lender, so it may be in their best interest to get what they can from the house, forgive your debt, and let everyone move on. What does that mean for you if you pursue this option? It means you lose the house, but you are no longer in debt.
- Get Cash Fast - While this option doesn’t save your home, it can get you out of debt and prevent foreclosure. Home-buying companies, like WCC Properties, can offer you cash for your home and close quickly. Once WCC Properties views the house, you get a fair offer in 24 hours then you can close in as little as 48 hours. This may be the solution you need to give yourself a fresh start.
- Face the Problem - Life happens. Everyone gets down on their luck at some point, making it difficult to stay above water. And it can happen for a variety of reasons. You could have taken an emotional toll, like losing a loved one or going through a divorce. Or, you could have suddenly lost your job with no potential prospects in sight. Whatever caused you to get behind on your mortgage, the problem will not magically go away. Instead, face the foreclosure head-on and look for ways to save your home.
