How to Avoid Foreclosure
Before we start our families, our number one goal is to prepare a beautiful and well-designed place for each member called a home. However if our finances are not right at the moment, this can pose a problem. A mortgage would be our best solution to create that place. It might be the easiest thing to get qualified and obtain a mortgage of a decent amount to build or purchase your dream home. Nevertheless we must consider the possible pitfalls that may be encountered along the journey. This helps to avoid the possible event of a foreclosure or when acquiring and repaying a mortgage.
Positioning yourself – First of all, one of the most important steps in avoiding a foreclosure is to set your priorities straight. I know it sounds very simple. But believe me when I say that this is one of the many reasons why so many individuals are trapped with mortgages. Some are even heading down the road to foreclosure as opposed to successfully repaying their mortgage. In order to avoid a foreclosure there are steps that you might want to take. Make a note of them and follow them so that you do not make the mistakes that so many people have made in the past. Even today some still continue to make them.
Getting financial counseling – without a doubt getting good advice and guidance is important. This is how you should deal with your mortgage. It is one of the most important steps that can help you avoid a foreclosure. Counseling is a psychological approach that helps you to better manage your finances. It allows you to prioritize and eventually coming out with the best results, simple because it works.
This is also proven in various research. A lot of borrowers who successfully repay their mortgages and owned their properties were those who received counseling. It might come off as a simple topic but it can pose a huge impact on the the outcome. Counseling can determine whether you will avoid foreclosure or not. Financial counseling can also be a method of helping you to determine whether or not borrowing is right for you at this point.
Ask about a loan modification- This is arguably one of the biggest mistakes that a borrower makes along the journey of acquiring a loan. They tend to miss the moment when they should have asked about a loan modification. This is when it reaches a point where it’s too late to turn back the hands of time and foreclosure is approaching.
Asking about a loan modification can certainly help you with adjusting your finances. It can also help you to position yourself to successfully repay your mortgage. It also gives you more time in most cases and allows you to work out better payment plans. This is usually outside of your original agreement with you lender. Most persons have capitalized on this and were able to successfully repay their mortgage.
Keep in contact with your lender – Another essential aspect to consider when trying to ensure that you avoid a foreclosure is to stay updated. Having a close relationship with your loan servicer/lender.
This is very critical and only so will you be able to know where you are with your mortgage and how much sacrifices you’ll have to make. This will also help you to have it cleared up within the specified time frame. A common mistake that most homeowners make after acquiring a mortgage is to totally forget that they should be keeping tabs. You should also be making every possible effort to stay updated with relevant information. The time and amount that you have left on your loan as well as other attributes are very important.
A mortgage is your responsibility and as such you will need to treat it in that regard. Quite frankly, no one else will. On the same side of the spectrum, the moral of the story here is that you should make it your duty to keep on track. Thus staying in contact with your lender as this will certainly help to decrease the possibilities of facing a foreclosure in the future.
Sell the house – Sometimes in life when “push comes to shove” you might just have to do what you have to do. Most times our decisions are so critical we can’t even make them alone. You should also bare in mind that with such decisions there is always an ultimately goal at hand. It is advisable that you look at the bigger picture. Do not let the temporary actions that you might have to undergo such as selling your house weigh you down
You are not the first person to be in this situation where you have no idea of where to turn due to your mortgage fees. There’s a reality of not meeting deadlines, but what others have done is to sell their house during the process. They then use those said funds to repay the mortgage and start a new page somewhere else. It might feel like it’s the end of the world but it surely isn’t. It is more of a next step on your journey to something better.
Several persons were in this very same position where they were about to lose their homes. It was the smart, yet effective thinking and action of selling the house that saved them when they were on the brink of foreclosure. So what do you rather, to sell your house and be debt free so you can acquire another one? Or fail to repay that mortgage and be set back in life? Well anyone who is smart would surely choose the first option without a doubt. Selling your house is a very promising method of repaying a mortgage and moving on.
Just before you spot the light at the end of your tunnel as you get ready to take on this avenue of settling your mortgage; you should be aware that it is solely dependent upon your loan servicer. They must agree to allow you to sell your home before if forecloses. Often times you can get an attorney to represent you and to help you explain your situation for a go ahead.
Be mindful also that there will be a report on your credit history and it may or may not pose an issue when trying to acquire a new mortgage in the future. If you’re not sure how of the entire process of selling a home during a foreclosure, you can learn more by using this link. Upon thinking about getting a mortgage, you should explore the possibilities of a foreclosure. You should also find out the steps that are available to help you avoid such mishaps.
If you need help with an existing foreclosure, call us today at 888-200-9824