Dealing with a foreclosure can be very stressful and depressing for homeowners. Apart from hoping to stop a foreclosure before the scheduled auction date, many homeowners may still be dealing other difficulties; such as an illness, or other financial hardships that may be contributing to their cycle of concerns.
Many homeowners face sudden, and often times unforeseen circumstance in theirs life, that make it difficult to continue making payments on their mortgage:
- Unexpected unemployment
- Sudden illness
- Divorce or separation
- Death in the family
- Not being able to pay increase on an adjustable interest rate
- Major home repairs
If you’re caught in the cross hairs of a pre-foreclosure, then don’t ignore the letters from your lender. Not responding, or ignoring the situation will only make things worse. From the time of notice, you will be given a certain amount of time to make our payments current. This is called a reinstatement of your loan. If you are falling behind, then contact your lender, and make them aware of your situation, and ask them what options you may have, so that they can allow you more time to pay off the loan.
A simple forbearance agreement will help to push the auction date back. And if you have plenty of equity, and decent credit, then consider refinancing your home, possibly at a lower interest rate. It’s wise to consider all options whenever facing as difficult of a situation as foreclosure.
If you can not make payments you may also consider a loan modification. Depending on your situation, there are some loan modification options your lender might propose. Although be careful whenever applying for a loan modification whenever facing an impending foreclosure. Only about 20% of homeowners get approved for a loan modification, and the process typically takes 30 to 90 days, depending on your lenders ability to efficiently work through the process. This is a tough road to take, but it’s an option to consider.
In some situations homeowners may be ready to walk away from the property, and allow for the bank to take the property back. A foreclosure may leave a huge ding on your credit for years, making it difficult to pull out a loan, or even rent an apartment, thus adding to more stress in the future. Consider speaking to a real estate agent, or if you need to sell quickly, then get a free quote today from us at Real Texas Buyers LLC, and allow for us to help you get out of your situations, free and clear. No real estate agent fees. And no closing costs to you. Just a quick cash close.
Acting fast is vital to preventing your property from falling into foreclosure. Whichever route you take, make sure to make a move as soon as you’ve decided on which route is best for you.
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We are not lawyers, and nothing on this website should not be considered legal advice. You should seek appropriate counsel for your own situation.