Foreclosures are nightmares that a family or individual would most likely try to avoid. However, due to some financial constraints that would probably occur on difficult times than most, immediate actions on avoiding foreclosure must be initiated.
Avoiding Foreclosure: When Financial Difficulty Is Ahead
- Act Immediately – If you find yourself in a situation wherein you will be skipping a few payments due to unavoidable circumstances, you need to act immediately. Contact your lender and let them know about it. They might consider giving you a short term payback scheme provided that you have been religiously paying your dues
- Ask for forbearance – Negotiating with your lender for forbearance might grant you a delayed period of time in paying for your mortgage. This will be a great help for you and you will have the time to rethink your game plan to get your mortgage current.
- Ask for repayment plan – Missing payments will definitely impact your outstanding mortgage status. However, you can try your luck with the bank to allow you for a repayment plan. With this, you will be given an opportunity to adjust your mortgage payments accordingly. They will typically allow you to pay a percentage of what you owe and then your balance will be payed off on a restructured terms.
What To Do When Worse Comes to Worst
What option do you have when you have a long term financial issue in the foreseeable future? Is there anything more that you can do? Well, avoiding foreclosure is still possible even if worse comes to worst on your finances.
Firstly, you can ask your lender for a loan modification to cut down the monthly mortgage payment. The bank may allow a change in the amortization schedule, interest rate or both as a result of the assessment. Next option would be a refinance of what’s left on your mortgage into a new and more affordable loan.
Your last option would be to short sell your home which is way better than foreclosing.
Avoiding foreclosure helps you keep your credit report clean and allows you a clean start on future mortgage applications. There are plenty of other options that can be considered too. So, if you want to know more, complete the information below and I’d be glad to discuss your situation.