The Essentials of – Revisited

By | July 17, 2019

Things that You Should Do to Prevent Foreclosure and Save Your Home

You find that the total consumer debt at the end of 2018 was almost $4 trillion which is an indicator of the financial straits people are in across the United States. You find that when the money is tight mortgage repayments can be a real struggle and this can lead to foreclosure. This should not worry you anymore because there are options which can turn the situation around as discussed below.

The first tip is to work it out. This will require you to speak to the lender before the embarrassment. It is true that lenders don’t want to take your home and they will be willing to negotiate your terms and find a solution. For that matter, you should talk to them about your option as soon as possible. Here you should expect things like forbearance, debt forgiveness, and repayment plants.

Besides, you should seek a buyer. Here you will have to find someone who is willing to buy your house. This way you will be saving the lenders the hassle of looking for a buyer because after all, that is what they will do. Here you will have to speak to an estate agent to see how valuable your house is and how many days they will expect it to stay in the market. It is essential to note that the lender is likely to stop the foreclosure if you have a ready buyer.

The other thing is deed-in-lieu. With this the homeowner will sign the deeds of the house back to the lender. In this case, the house will be effectively given to them, the mortgage is forgiven and foreclosure stopped. The good news is that it will also help in protecting your credit rating.

Apart from that, there is also a short-sale success. Short sales are when you can buy or sell real estate at a price that falls below the mortgage amount owed by the current homeowner. Remember to negotiate with the lender to see if it is an option. This will help them to avoid the time and expense of repossessing the house.

Besides, you should also file a lawsuit. Here you will have to file a lawsuit against the lender. You find that this is the best option when you don’t own promissory note, violated the homeowner’s bill of rights or didn’t follow the requisite steps in the process of foreclosure. You will only have an advantage if they are foreclosing outside the court system.

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