How to Avoid Foreclosure
Are you aware that around 66% of Americans are homeowners?
Although owning a home is a wonderful accomplishment, some people don’t realize how expensive it can be. Not only do you have to worry about your mortgage payments, but you also need to cover other miscellaneous expenses like property taxes, repairs, insurance, and more.
The unfortunate truth is that many people face foreclosure each year. Are you wondering, “Can you stop a foreclosure?” Read on for our top tips on how to avoid foreclosure.
Consider a Forbearance Agreement
The first step that people often take to combat home foreclosure is entering a forbearance agreement. This agreement allows you to stop making any payments on your mortgage for a certain number of months.
Even if your agreement is only a few months long, this will give you precious time to catch up on your bills and regain your footing.
Modify Your Loan
One simple way to prevent foreclosure is to ask your lender if they would be willing to modify the terms of your loan. This could involve lengthening the amount of time you have to pay back the loan, reducing the interest, or making smaller payments each month.
Every lender and mortgage is unique, so you should be ready to hear several different options that they may prefer.
Explore Refinancing Options
If your lender isn’t comfortable modifying your loan or you don’t like the options they brought to the table, then you can expand your search elsewhere. Other financial institutions may be able to help you refinance your mortgage.
This new lender will pay off your debt for you and create a new loan that’s easier for you to manage moving forward.
Sign a Deed in Lieu of Foreclosure
If you need help figuring out how to stop foreclosure, then you may want to discuss a deed in lieu of foreclosure with your lender. This entails giving over your property to your lender to avoid any financial issues.
Since this route takes away your home, it’s best to save this as a last-resort effort.
Complete a Short Sale
A short sale will allow you to make money to pay your lender. They’ll take the profits and forgive any remaining debt that may not be covered. Working with a real estate agent who has experience with short sales will help you navigate this new process.
You can also find buyers who are willing to pay with cash in as little as 24 hours. You can read more here to learn about your options.
This Is How You Can Avoid Foreclosure
Foreclosure is a scary word, but the comforting news is that there are plenty of things you can do to protect your finances and future. If you follow these tips on how to avoid foreclosure, you can choose the best option for your unique needs.
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