05 Mar How to Avoid Foreclosing on a Home
When a homeowner is unable to make their monthly mortgage payments or pay off outstanding debts on their loan, their lender recovers the missing funds by seizing the property to sell it. This is called a foreclosure. While a foreclosure is sometimes inevitable, there are a couple of ways homeowners can escape the foreclosing process.
If your recent inability to make payments on your mortgage has been a relatively temporary issue, you may be eligible for mortgage reinstatement. Mortgage reinstatement is a way to make up for past dues and get back on the right track. If your lender agrees to it, you will be expected to pay back the missing amounts and any late fees by a certain date. If you are able to do so, you will achieve a “clean slate” with your lender so that you can continue living in your home as normal.
If your current lender refuses to offer you the chance to reinstate your mortgage but you still want to keep your home, you can always try refinancing your mortgage with a different lender. Refinancing could allow you to lower your monthly housing expenses so that you can pay off remaining debts. Before applying for a mortgage refinance, make sure you contact several different lenders to get the best price available.
Selling for Cash
Not everyone in the midst of a foreclosure wants to keep their home. In fact, depending on the situation, it may be advantageous to just get the property off your hands for good. This is especially the case if the home is burdened by pesky tenants or is in need of costly repairs. Many home buying companies are willing to purchase homes as-is for cash. When working with a home buyer, you can move out quickly, evade an inevitable foreclosure, and receive the cash you need to clean your slate.
If you are struggling to make payments on your home or pay off outstanding debts on your mortgage, you are not alone. Many people know what it is like to go through financial difficulty and a pending foreclosure. For this reason, there are many real estate and legal professionals out there to help you avoid foreclosure. Be sure to seek their advice and consider all of your options before taking the next step.
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