5 Ways You Can Prevent Foreclosure Today.
If you're having trouble paying your property bills, you're not alone. Throughout the country, 1 out of every 27 mortgages are currently in default. (according to the Federal Reserve) Once you start missing payments, the impending threat of losing your home can leave homeowners feeling powerless. The good news is, there are 5 proactive steps that you can take to reclaim your financial freedom today!
Even though it may not seem like it, most households have lots of hidden assets that can help you out of a bind. If you lost your job or have health issues, programs like Unemployment insurance, disability insurance can be a big potential cash source. You can trade in cars or even tap retirement funds if necessary — (but be aware that withdrawals may result in penalties and additional income taxes.) If none of these apply to you, don't forget about the equity you have built in the house!
TALK to a hud house counselor:
If you are unsure of your options, a counselor at the Department of Housing and
Urban Development (HUD) can often be a lot of help. You may want to speak with a Counselor for advice before you sign any agreements. They will provide you with housing advice and counseling absolutely free of charge. A counselor can educate you about for government programs that may help you once they learn about your specific situation. They are here to help and can even provide insight into budgeting, credit card management, and other ways to overcome your financial hardships. For more info contact your regional HUD office.
Talk To your Lender
While this may seem like the last person you want to talk to when you can't pay your mortgage, the Lender has many options designed to help people in this exact situation. (For a complete list please refer to this great article from RealtyTrac)
This is a way to restructure your loan and possibly work out new terms that would accommodate your current financial situation. Often times the interest rate or length of the mortgage can be altered to lower the monthly payments. However be aware that this could cost you more money in the long run. Make sure you can sustain the new payment structure, or you could end up right back where you started with mortgage delinquency.
For instance, if you miss a payment and that each payment is $2,000. You may be able to negotiate a repayment plan where you pay an extra $75 a month until the missing amount is repaid.
Your lender may be able to make a temporary change in the terms of your mortgage, such as granting you permission to make smaller payments for a few months or to skip a payment all together.
If you put less than 20 percent down when buying your home, you will typically be required to have private mortgage insurance (PMI). Sometimes, PMI companies will grant a cash advance to bring the loan current — this money can sometimes even be granted interest free and not required to be paid for several years.
Many lenders, but not all of them, will provide you with relief in the wake of a disaster such as a earthquake or tornado. This will often be in the form of not charging late fees, or not reporting delinquency to credit bureaus.
This is where you work out an arrangement with the Lender to sell your house for less than what you owe on it. Basically the lender agrees to take less so you can walk away without foreclosing. (Called a “compromise agreement” with VA loans.) But be careful as the Lender may come after you for any shortcomings that the house sale didn't cover on your debt.
Deed in Lieu :
The deed-in-lieu is where you literally sign over legal ownership of your home to the lender, and in turn they agree to not foreclose. Like a short sale, you have to be careful as a lender may come after you for any shortcomings.
If you have no other option, many homeowners consider bankruptcy as a last effort to save their home. Unfortunately, often times bankruptcy only delays the inevitable, but can buy you a bit of time.
SelL Your House For Cash
In the end, if you can't afford your mortgage, the easiest option to regain your financial freedom can be to sell your home and avoid the foreclosure altogether.
At Buy My House Colorado we always give fair, all-cash offers on your home within 24 hours of the initial home viewing. No matter what condition your house is in, or what time frame you are working within, Buy My House Colorado can provide you with the financial stability you need so you can start thinking about what really matters — your future.
No matter what degree of complexity, Buy My House Colorado is eager to help anyone struggling with real estate hardship. Call us to speak with a live representative 24/7: 1-833-SELL-247 (1-833-735-5247), or submit your information to get started today!