Getting a few months behind on your mortgage can be a stressful time. Getting notified that the bank has begun the legal procedure of foreclosure is even worse. There are several strategies to avoid foreclosure. We’re going to go in the order that allows you to keep your house.
- Borrow Money from Friends and Family – Depending on what your arrearages are, you might be able to borrow the necessary funds to catch up your mortgage and get back on track.
- Rent it Out – You can start to alleviate the monthly shortage by renting out your home.
- Loan Modification – You can contact your lender and see what is required to do a loan modification. Often, they can work with your new financial situation and modify your loan.
- Request a Forbearance – The overall principle you have to remember in this situation is to never stop communicating with your bank. I know it can be uncomfortable, but there may be benefits to communicating as well. Increased time will be beneficial. A forbearance will give you the time you need.
- Give the House Back to the Bank – A Deed in Lieu of Foreclosure just ends the process immediately and is more beneficial to your credit than allowing the foreclosure to continue.
- Sell the house – Alright, you’ve decided it’s time to sell the house. We can help you with that. We can point you in the direction of a realtor that can help you or we can buy your house from you for cash quickly.
Above are six strategies that will help you avoid foreclosure. Remember, rule number one to avoid foreclosure is to make sure you start by communicating with your lender. Avoid pretending that the situation will disappear. Make a plan to avoid foreclosure or if you need help feel free to give us a call. We can offer suggestions custom suited to your specific situation.