Foreclosure is not something any homeowners like to think about, especially with the harden economical crises that are prevalent today. However, there are some ways to avoid going into foreclosure.
1. Settle your Mortgage on Time
The first thing is to make timely payment of your mortgage. This advice may sound simple however the main reason that homeowners face the danger of going into foreclosure is because of missing their mortgage payments.
If you are in a financial predicament and are not able to settle your debts, look out for those credit bills that need your immediate attention. Your mortgage is one of the most critical credit bills in that it is linked to your home, and failure to settle this payment can force the bank to foreclose on your house. In prioritizing these credit obligations, mortgage payments should always be first and foremost a priority. You can pay other payments obligations later, such as credit cards and other debts; as even in case of default, you will not risk losing your home.
2. Request an Adjustment in Settlement From The Bank
If the situation is getting out of control, you have few options. You can contact the bank yourself or call your attorney to speak on your behalf. You may even approach a loan modification firm that deals in matters on mortgage negotiations with banks to modify the terms of repayment.
Some ways to modify your current mortgage include the following.
If you hold some equity in your house, you can go for a refinance option (if you are not in pre-foreclosure yet) to reduce your payment and get some quick cash to pay your missed payments. You should be careful, however, to make sure that you don’t fall in the same predicament, and you make payments of all the debts of the new mortgage without any delays. With equity, you have the option to apply for the second mortgage or go for a HELOC. You cannot risk defaulting on your second mortgage as you face the same threat of foreclosing from the second mortgage owner that you do from the first one.
If you are a;ready in pre-foreclosure or close to going completely into foreclosure and don’t want to lose all to foreclosure, selling would be the best of options. A company such as Homeowner Solution Services, will buy your pre-foreclosure or foreclosure property, settle with the bank, and allow you to exist the property with some money in the form of a Default relief check, rather than lose all to foreclosure. Or if you want to keep your property after settlement, you can take advantage of their sale-lease back program which will allow you to buy your property back afterwards.
3. Bankruptcy
Another way to get out of this threat is to apply for Chapter 13 bankruptcy that is a “reorganization” way for you to prevent the foreclosure. You will have to settle amounts for the bankruptcy and still have to pay all the current payment in time. A Chapter 7 bankruptcy means forgiveness, but, the approval is unlikely as you have ownership of a tangible asset of a house.
The bankruptcy gives you temporary relief, and you have to make the payments as per the bankruptcy terms to keep your house. If you fail to make the payment, the bank may revoke the bankruptcy procedures and proceed with the foreclosure.
4. Sign a Deed-in-lieu of Foreclosure
You can settle the issue by handing over the house to the bank. This approach means you do not have to sit through lengthy court proceedings and you will also avoid having the negative impact of foreclosure on your credit rating. You can do away with the house and continue with your life.
However, this will also mean that you will lose all of the equity that you have in the property as well. And if you would prefer to walk away with some money instead of none, selling – even at a substantial discount – would be a better option for you.
5. Put Your House Up For Sale
If you do not have the financial strength to afford the house, you can sell it. Selling can be the last option for you before the house goes into foreclosure and the bank auctions it off to the highest bidder to recupe its investment.
If you have equity in the house and do not want to lose all, an option would be the Default Relief Program offered by Homeowner Solution Services They will stop the foreclosure process, make all back overdue mortgage payments, sell your home to a database of their own buyers, and help you walk away with a Default Relief Check and some money, so that you won’t completely lose all to foreclosure. If you are facing an immanent threat of foreclosure, you should look to sell the home quickly; and if you can get what you owe to the bank and make some money yourself using this option, do not prolong this kind of option.
If the amount due on your property is more than its market value, Homeowner Solutions Services also has “underwater” and low equity options, and will help you settle with the bank, find a buyer, and help you possibly exit with some cash.
You can also work with a Realtor to negotiate with the bank for a short sale. In a short sale, the bank will settle for an amount less than what you own to pay the debt. Be sure that you get everything in writing, so there are no threats of banks to approach you for the difference amount. You should also know that accepting the short sale is an option for the bank and they may even refuse this proposal.
You can also look out for investors who are willing to take the property from you. We are property acquisitions and liquidation specialists and can provide an immediate offer on your property after submitting an offer request form https://reiacquisitions.com/services/sell-a-house/. We work with a national network of investors and can purchase your property immediately, and close the sale in a matter of days. If you are a few days away from an auction you have no better option then to find a buyer/investor and to get in a sales contract to prevent foreclosure and come out ahead.