Finding Ways To Save Your Home From Foreclosure
If you have been struggling financially and your home is at a possible risk of foreclosing, you may not know where to turn. Facing foreclosure can be scary and complicated. However, depending on what your financial status is and how close you are to foreclosure, there are numerous things you can do to save your home from being foreclosed. There are more solutions to the problem than you might think. The trick is to know what they are. Below you will find a list of the most common and effective ways of dealing with foreclosure.
Act Immediately
It is important to understand, when facing foreclosure that the sooner you act, the better off you will be. As soon as you realize that you may be unable to make your monthly mortgage payments, you should begin looking into ways to remedy this problem. If for any reason you delay until the foreclosure process is already well under way, it will likely be too late. Be proactive. Face problems from the moment they present themselves.
Seek Forbearance
If your financial problems are only short term, as the result of some unforeseen expense like a hospital bill, but you have otherwise proven yourself competent and paid your mortgage bill regularly, you may be able to convince your lender to agree to a special forbearance of some kind. A forbearance is an agreement between you and your lender in which your bills are temporarily lowered or delayed in order to prevent foreclosure.
Refinance/Modify Your Mortgage Loan
An extended change in your finances will probably require a long-term solution. In this case, refinancing or modifying your loan may be your best bet. Loan modification will allow you to change the terms of your loan, or extend the amount of time you have to pay it off. As in the case of forbearances, you will need to talk to your lender directly about what financial issues you are having and be able to prove that you will not be incompetent about paying your bill in the future. If your lender believes that you will continue to have problems paying your bills, it is doubtful that you will be allowed to refinance.
Consider Reinstatement
Another way to combat foreclosure is through reinstatement. Reinstatement is the act of paying off all of the missed loans, late fees and other expenses incurred that lead to or followed foreclosure in one lump sum. The good thing about reinstatement is that it is a method that can be employed rather far into the foreclosure process–sometimes even days before your home is auctioned off. Keep in mind, however, that unless you have access to a large lump sum of cash, this method may be unrealistic.
Work With Government Assistance Programs
If you need to talk directly to an expert or receive any other kind of assistance before or during the foreclosure process, there are a number of government agencies set up to help you. Some of these agencies are available to help all struggling homeowners, while others reach out to specific groups like victims of natural disasters or veterans.
Avoid and Report Scams
Unfortunately, there are groups out there designed to take advantage of confused and struggling homeowners. Be wary of external groups that attempt to contact you by phone or over the internet. Do not turn over any personal information or sign any paperwork for any group offering to help you that seems suspicious. A good rule of thumb is to remember that if a deal seems far too good to be true, it probably is. If you uncover a scam, report it immediately to the proper government authorities.
Quick Sales
Here at Blue Marble Properties, we specialize in helping homeowners avoid foreclosure by offering cash-only home purchases. This allows homeowners to avoid foreclosure and, in some cases, escape from their distressed homes debt-free. Contact Blue Marble Properties today to learn more about how we can help!