Save Your Home From a Foreclosure

When purchasing a home, the idea of foreclosure is probably the furthest thing from most buyers’ minds since few, if any, home owners actually plan on losing their property. Still, apart from those rare individuals who engage in mortgage fraud, the reasons surrounding why home owners fail to make timely mortgage payments is often sudden and extenuating—job loss, family death, illness, etc.

Still, while these difficult life events may present obvious issues, there are still ways to avoid foreclosure—first and foremost involving honesty. Ignoring letters from your lender because you’re too embarrassed to deal with the problem can make things exponentially worse. Most lenders aren’t looking to throw you under the bus, so depending upon your particular situation, they might propose several options to help you maintain control of your home.

-FOREBEARANCE: Some lenders may agree to hold off on taking legal action against you in favor of working out an affordable repayment plan.

-FORGIVENESS: While rare, debt forgiveness is possible if a lender decides to waive your obligation in favor of helping your account become current.

-REPAYMENT PLAN: If, for example, you’re behind by $1,800, your lender might allow you to add $100 per month for a year-and-a-half until you’re caught up.

-NOTE MODIFICATION: If you have a mortgage that’s part of an adjustable loan, the lender may choose to freeze your interest rate before it increases. If they can keep it in a range that’s more manageable for your budget, you’ll be less likely to lose your home.

Still, when things get really bad and your lender winds up filing for a notice of default, your actual options are somewhat slim; however, you will still have a few opportunities to stop the foreclosure.

-SELL: If you are deciding to sell your home, it’s important to work with a real estate agent who will help you get the largest sum for your property.

-SHORT SALE: If you find yourself under water and your home is worth a lot less than you still owe, a short sale might be an important option. Yes, it will affect your credit score; however, it doesn’t look nearly as bad as a foreclosure.

-DEED-IN-LIEU OF FORECLOSURE: While it may look the same as a foreclosure on your credit report, the homeowner can deed the home back to the lender which may encourage them to forgive the mortgage—and cancel the foreclosure action.

In the end, it’s important for struggling homeowners to keep an open mind in regards to foreclosure actions.

If you’re facing a difficult situation, it’s important to speak with a qualified lender to better understand your options. To learn more, please do not hesitate to call me. I’d love to hear from you.

Pam Wright | OnQ Financial | www.onqfinancial.com | 404-445-1033