: 10 Mistakes that Most People Make

August 9, 2019

Auto & Motor

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Essential Tip for Preventing Foreclosure and Saving 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. When the money is tight it can be hard to repay the mortgage loan which might make you lose your home. The best thing is that there are steps that you can take to prevent foreclosure and save your home, read more here.

To start with, you should work it out. One thing that you will have to do is to speak to the lender before the embarrassment. It is essential to note that most lenders don’t want to take your home and they might be willing to negotiate your terms and find a solution. Therefore, you should take to them about the loan modification as soon as possible. Some of the modifications that you can opt for are forbearance, debt forgiveness, and repayment plans.

Apart from that, you should seek a buyer. This will require you to find someone who is ready to buy your house. With this, 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. One thing that you should know is that if you have a ready buyer the lender is likely to stop the foreclosure.

Apart from that, there is also deed-in-lieu. Here the homeowner signs the deeds of the house back to the lender. Where the house is effectively given to them, the mortgage is forgiven and the foreclosure stopped. Apart from that, it will also help in boosting 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. But it is vital that you negotiate with the lender to see if it is an option. They might buy this idea because it will make them avoid the time and expense of repossessing the house.

Last but not least, you should 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. Typically, it will work if they are foreclosing outside the court system.