Is Your Home Facing Foreclosure? How to Make the Situation Right
facing foreclosure
If you’re having trouble making payments on your mortgage, you aren’t alone. Millions of Americans have found themselves in that situation over the past few years because of the housing crisis and recession.
Even if you think that foreclosure is a remote possibility, it never hurts to take precautions early on to make sure that you are doing everything in your power to protect your home from being repossessed in case of an emergency.
If you’re facing foreclosure and need help finding solutions, check out these tips for handling this difficult situation.
Shop for a New Mortgage
If you can’t afford your current mortgage payment, but you have enough equity in your home that you can refinance at a lower interest rate and payment, this would be a good option.
But if you owe more on your home than it is worth, refinancing won’t help because you won’t have enough equity to get a new loan.
If you have equity in your home, ask your lender about a term refinance. With a term refinance, you can refinance for a longer period of time at a lower interest rate.
This can lower your monthly payments and give you some breathing room to get back on track.
Change Your Mortgage
If you are having trouble making your payments, a loan modification may help you get more manageable payments. This modifies one or more of your existing mortgage conditions permanently.
Unlike applying, and qualifying for, a new mortgage, you keep the mortgage you have with some of the terms changed.
While it doesn’t require the same process as refinancing, it is not an easy process. Because it can be confusing and you may not know all the laws and regulations that apply, it may be in your best interest to seek out loan modification law services.
These services can insure that your interests are represented and that your lender does all they are required to do when you request a loan modification.
Find Out if You’re Eligible for Any Discounts or Help From the Government
You may be able to get a reduction in the amount you owe by participating in a homeowners’ assistance program.
You can check if you qualify for help by clicking here. You can also speak with someone at your lender to see if you qualify for a reduction in your payment amount.
Determine if Bankruptcy Is an Option for You
If you can’t make your payments and you have done everything you can to lower your payment amount, you may need to consider bankruptcy.
But keep in mind that bankruptcy has serious long-term consequences. It stays on your credit report for 7-10 years and can make it harder to get a job, a car loan, or a credit card.
It can also make it harder to rent an apartment or buy a home in the future. You may want to consult with a credit counselor or attorney before deciding to file for bankruptcy.
If you are facing foreclosure, you need to take action right away. Don’t wait until your situation is critical. Get help while you still have time.
You’re not alone. Millions of Americans are struggling to make their mortgage payments. Many of them are finding ways to get back on track. You can too.
There are lots of people who want to help you, from your lender to nonprofits that specialize in helping people stay in their homes.
All you have to do is ask for help and be proactive about finding solutions to get you back on track.
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Category: Foreclosure
