Foreclosure is a serious situation that can happen to anyone. When the lender or mortgage servicer takes back the property after the homeowner falls too far behind on their mortgage payments, it can feel overwhelming. Facing foreclosure can make it hard to keep your home, but there are many options available to you. The most important thing you can do is take action. You may be able to negotiate with your lender, ask for a loan modification, or go to court. No one will win every battle, but by taking action you’ll have a better chance of getting through this difficult time.
If you're on the verge of foreclosure, there's no time to waste. You need to act now in order to save your home. If you're behind on your mortgage, it's getting harder and harder to get back on track and save your house. There have been many changes in the mortgage industry in the last few years which make it more difficult for borrowers to regain their footing. Services like online modification and short sales have made it much more difficult for homeowners to get back on their feet. First, lenders are requiring higher credit scores for some modifications. Second, they are shutting down more and more loan modifications when borrowers miss several scheduled payments. And finally, they are charging an increasing rate for short sales. This means that if you're trying to sell your home quickly and you're behind on your mortgage, the odds are very high that you will lose your house.
If you're on the verge of foreclosure, there's no time to waste. You need to act now in order to save your home.
It may feel like the end of the world, but you do have options. Let's cover some of your options when facing foreclosure.
If you had a temporary setback that prevented you from making your mortgage payments for a period of time, and you are now able to continue making payments in full each month, you may have the option of seeking help from your lender. This help can come in the form of a repayment plan, in which your lender will take the amount you owe in missed payments and add increments of it to your regular monthly payments, allowing you to pay back what you owe over a specified time period. This repayment plan is usually preferable to trying to repay your past-due loan in one lump sum, because it allows you to avoid any adverse consequences that might come with missed payments, such as having your credit rating downgraded or being unable to buy a house. If you choose to accept a repayment plan from your lender, be sure to discuss all the details before you sign anything, so that both you and your lender know what to anticipate.
Loan modifications are a popular way to get a loan that's more affordable. They typically involve reducing the interest rate, adding any overdue amounts to the loan balance, and extending the length (the term) of the loan. As part of a modification agreement, the lender might also agree to set aside part of the unpaid balance as a "principal forbearance" that doesn't accrue interest. The set-aside portion usually becomes due in a balloon payment when the loan term ends. In order to qualify for a loan modification, you need to be proactive and work with your lender. You should submit a request for a loan modification early in the negotiation process, and keep track of the status of your request so that you're prepared to make a counteroffer if your lender accepts the original offer but asks for changes.
Mortgage payments are usually due on a regular schedule, but sometimes circumstances arise that make it difficult for you to make your payments on time. If this is the case, you may be able to ask your lender to defer your mortgage payments. This means that your missed mortgage payments will be brought forward to the end of your loan term. However, your monthly mortgage payment amount will stay the same. Who is eligible for a payment deferral? Generally, anyone who wants to ask for one may do so. Mostly, it is used by people who have been unable to repay their mortgage payments as a lump sum or through increasing their monthly mortgage payment. Sometimes, a payment deferral is also granted to people who are struggling financially but are still able to make their mortgage payments. Generally, lenders want to see that you are making every effort to repay your mortgage, even if that means taking longer than originally scheduled. Of course, there are always exceptions, so always speak with your lender before requesting a payment deferral. In some cases, a lender may be amenable to granting a payment deferral even if you have not made your entire loan payment. Speak with your lender to get an idea of what is possible.
If you have little to no equity in the home you can always try and sell your home quickly. To do this you will have to work with either an iBuyer or a local real estate investment company. There are many fast house buyers in Atlanta that will make you an all-cash offer for your home. However, if you don't have any equity in the home, it is possible that you may owe money at closing.
If you're thinking about giving up your house in a short sale or deed in lieu of foreclosure, there are a couple of ways to say goodbye to it. You'll want to choose the method that causes the least financial and emotional upset to you and your family.
The most common way to give up your house is by selling it through a real estate agent. This process can be a little confusing, so make sure to work with an experienced one who will guide you through all the steps. You'll need to list your house for sale, set a price, and wait for interested buyers to come forward. The tricky part is that you may not be able to sell your house immediately; you may have to wait weeks or even months. In this case, you may need to stay in the house until the sale is completed.
You might also want to consider giving up your house through deed in lieu of foreclosure. This involves filing a voluntary legal action to avoid being forced to sell your house at auction. The downside is that you'll have to go through the legal system, which can be time-consuming and expensive. The upside is that you'll avoid the hassle and expense of having to sell your house at auction. To execute a deed in lieu of foreclosure, you'll need to prepare a written proposal and submit it to the court.