Need Pre Foreclosure Help?
The last few years of the pandemic has brought unprecedented challenges for many of us. There was a widespread economic meltdown and many lost their sources of income. While many of us barely managed to make ends meet, some had to sell off their assets for survival. There has been a rise in mortgage defaults and as a result many homes were foreclosed. A foreclosure occurs if the lender receives the authority to serve the delinquent borrower a foreclosure eviction notice and then proceeds to hold a public auction to sell the property.
Preforeclosure is the first step in the foreclosure process. It gives options to homeowners to stay in their house before foreclosure. Preforeclosure occurs when a homeowner fails to make mortgage payments, prompting the lender to issue a notice of default. This is a legal notice and means that the lender has begun the legal process of foreclosure.
If you’re facing foreclosure, there are things you can do to help make your situation better. First, understand why you got into this position in the first place. What led to the missed payments? Were you laid off? Was it a medical emergency? There is no wrong reason for missing a loan payment, and often there was no way to avoid it.
Now that you’ve identified the cause of the missed payments, find out your options. Here, we look at the various ways to keep an impending foreclosure at bay:
1.Negotiate with your lender – The most important thing you can do is notifying your mortgage lender that you need help. The sooner you speak to your lender, the more options you’ll have. Some mortgage companies are willing to work with borrowers who are having financial difficulties. They may be able to modify the terms of your loan or grant a forbearance or extension so you can get back on your feet and resume making payments on time.
2.Consider a Loan Refinance – Homeowners whose homes have appreciated in value since purchase have an option of refinance. Another option is that of a loan modification. It’s basically a rewrite of a homeowner’s current mortgage without the closing costs. This option will likely extend the life of your loan, but by spreading out the payments over more years, it will also give you more affordable payments.
3.Short sale – A pre-foreclosure home that a borrower puts up for sale is typically referred to as a short sale. This sale can be private between the homeowner and the buyer but must be approved by the bank. The purchase price may be less than the outstanding loan balance, which is why the sale is said to be short. If the homeowner lists the property for sale through a real estate agent, then prospective buyers will contact the listing agent. In any short sale, the lending bank will likely need to be involved and may hire one or more real estate brokers. Short sale saves time and expenses of foreclosing on a property.
4.Deed in lieu of foreclosure – Another option before foreclosure is to surrender your ownership rights to the lender via a deed in lieu of foreclosure. Once the deed is signed, the owner vacates the property. In return, the lender is free to sell the property immediately. This option can be beneficial for people who want to avoid a foreclosure process which affects their credit score really hard.
5.Borrow from friends and family – The best way to get out of preforeclosure is by catching up on all missed payments. Once the mortgage is brought current, many lenders will stop the preforeclosure process. You can make an attempt of doing so by borrowing the loan amount from your friends or relatives. It may be uncomfortable but it might be a last attempt to save your home.
If you are looking for ways to avoid the foreclosure process, it’s always a good idea to start by doing some research and get help. Here are some things you should look into before making a decision:
- Foreclosure laws vary based on your state and lender. Make sure you know what the law states and what kind of protection it provides homeowners.
- You don’t have to wait until your home has been foreclosed on to sell it. There are other options you can consider, like short sales and deed-in-lieu of foreclosure.
- Some states have programs that will help you buy back your home by paying off your existing mortgage or by providing you with enough money to purchase the property.
- You can also see if there are any programs or grants available that will help you purchase a new home in your area after a foreclosure.
- See if you qualify for unemployment benefits. Many states offer help for unemployed homeowners facing foreclosure.
- Contact your lender and find out if they offer any programs for struggling homeowners.
- Determine how much time you have left before being foreclosed on and start looking for a new place as soon as possible.
We at www.sellmyhouseinfo.com are just a click away should you need any pre foreclosure help. We believe that the main thing about pre foreclosure actions is to stay positive! The world is full of miracles and a little determination can help you save your home. Please feel free to connect with our experts for any Pre Foreclosure Help.
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