Are you in need of help to pay your bills and complete your mortgage payments?
If so, don’t worry. You are not alone.
In fact, according to the Federal Reserve, 3.68% of mortgages go into default. If you have found yourself in this situation and are facing foreclosure, you’ll be happy to know that there are many choices you have to save your home.
So, here are some ways to prevent foreclosure:
Loan Modification
To help make your monthly payment more affordable, a lender might modify the terms of your loan. Of course, if you lower your monthly payments, you essentially extend the life of your mortgage. In the long run, this could end up costing you much more.
Your job is to make sure that you can actually afford to pay the new amount before modifying your loan or else you could end up in the same situation once again.
Repayment Plan
Your lender may offer you a structured repayment plan, allowing you to catch up on your late payments over a period of time. It should be noted that starting a repayment plan will not reduce the amount that you owe overall. Prior to starting the repayment plan option, you need to make sure that you have the ability to pay more money each month.
Forbearance
When you have a forbearance agreement, you can temporarily make lower mortgage payments or skip a few payments over the course of decided upon months. Typically, forbearance agreements only come into play after a job loss, natural disaster, illness, or some other form of temporary hardship.
Short Sale
When you have a “short sale,” you sell your home for less than the amount that is owed on your mortgage. The lender may or may not be able to enforce you paying the difference once the sale is complete. Whether or not you have to pay depends on the laws in your region, as well as your mortgage terms.
Prior to agreeing on a short sale, you may want to speak with your lender about waiving deficiencies.
Deed-In-Lieu Of Foreclosure
A deed-in-lieu of foreclosure is when you prevent foreclosure by signing your home over to a lender and walking away. It is your job to ensure that the lender won’t hold you liable for the mortgage remainder, just like with a short sale. You might also want to speak with your lender to see if they have a “cash for keys” program or something of the like.
These types of programs are there to help you pay for the costs of relocation.
Final Thoughts
Of course, you may not be able to avoid foreclosure in some situations and that’s okay. If that’s the case, you may consider selling to a cash investor like HelloPad.
We are one of the most reputable cash investors in the Washington State area and have helped thousands of homeowners sell their homes in Washington for cash FAST. You’ll never have to deal with the arduous closing process or costly fees associated with repairs, renovations, staging, and more.
Drop us a line today to see what we can do for you!
