While nobody likes to think about foreclosure on their home, the worst thing you can do is avoid preparing for it. Life happens, people have their homes foreclosed on them, and it’s never a good feeling. The emotional stress of foreclosure can cause many people to shy away from seeking out effective solutions. In this article, we walk you through how to make the right decisions for you and your family when facing down a potential foreclosure.
Don’t Ignore the Situation
The farther behind you get on your payments, the worse things are going to get. It will also become harder to reinstate your loan and it will become more likely that you will lose your house.
Contact Your Lender
The bank is not interested in having your house. You might be thinking that by contacting your lender they are going demand payment immediately and put you out on the street, but that couldn’t be farther form the truth. Lenders offer many options to assist homeowners experiencing financial difficulty. Both you and the lender benefit from arrangements that avoid foreclosure process, but often refinancing can benefit the lender more than it benefits you. If you are having trouble communicating with your lender, or someone with the bank is becoming obstinate and unhelpful, there are organizations that will assist you in contacting your lender. Contact a lawyer in Wichita, Kansas for a free consultation and see what your options are if you need help dealing with lenders. Also, make sure to open any mail received from your lender. It is important to know where you stand and keep communication open with your lender.
You can also turn to the government for help. The Federal Housing Administration offers services and loans to help pay for mortgages. The problem is that many of these programs and loans come with high interest rates, as well as upfront and annual payments. On top of that, there is a huge laundry list of stringent requirements that you must meet in order to qualify for any of the benefits provided by the FHA. While turning to the government may be a good last resort, we don’t recommend it as a first choice for these reasons. There are many other options that can and should be explored before turning to the FHA or any other government assisted bailout program.
Review Finances and Assets
Sometimes the hardest work can be looking at your own financial history and attempting to calculate just exactly where your money may be going to waste. Create a priority list and assess what you’re spending your money on and what can be cut from your expenses. It may also be worthwhile to take a look at your own assets and see if there’s anything valuable that could be sold to get you back on your feet. Maybe that fishing boat you bought with your stimulus check hasn’t seen the water in the last 12 months. When facing a foreclosure, sometimes you have to make difficult decisions such as selling some mostly unused property. This is a good strategy for someone who has assets and extra money to move around, but for those who are already paycheck to paycheck, there may just not be any wiggle room to make money moves in.
Do Not Get Scammed
The absolute worst thing you can do is accept “services” from someone claiming to be able to stop your foreclosure. Never sign any legal document appointing anyone to take over your mortgage. Because guess what, you just turned your home into a rental, and now you’re a renter in your own home with a landlord! There are plenty of firms that will make absurd claims about being able to stop your foreclosure in it’s tracks for suspiciously low fees. They don’t have the power to do that, and they are only out looking to scam you out of your money and the rights to your home.
Sell Your House As-Is
One of the easiest solutions to avoiding foreclosure is simply selling your house. Many people don’t realize that their house is worth more than they thought. Selling your house in as-is condition is hassle free and can release you from the stress of worrying about your mortage.
Harmony Home Buyer will purchase your house in as-is condition and set you on the path to finally being free of the worrisome process of foreclosure. We come up with cash offers in under a week, and provide detailed explanations of every part of the process. We promise to give you a fair deal on your house at make sure that everyone walks away a winner.
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