You can keep your house if you are facing foreclosure. You can find out more about various ways to hold onto your property by speaking to a competent lawyer. After all, everyone’s lifestyle and budget is different. Usually, you can apply for a loan modification or a reverse mortgage (if you are older) and stay in your home. You may also opt to file bankruptcy.
Below are some ways you can keep your house and avoid foreclosure proceedings.
Financing Assistance To Avoid Foreclosure
If you are unable to meet your mortgage payments, you may find that you are dealing with one of two situations – one that is short-term and temporary or one that is long-term and permanent.
Solutions For Short-Term And Temporary Payment Problems
If you see the problem is short-term and temporary, you may want to consider the following:
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Mortgage Reinstatement. If you have enough money or cash to reinstate your mortgage by making up the missed payments, plus, interest and fees, you can reinstate the mortgage for one lump sum.
Forbearance. Forbearance marks a temporary period where a regular house payment is suspended or reduced.
Repayment. This process enables a homeowner to pay down any past due amounts on his or her financing while continuing to make regular house payments.
Solutions For Long-Term And Permanent Payment Problems
If your situation is long term and permanent, or you feel it will take years to recover from your financial setback, you may want to consider the following solutions.
Mortgage modification. A modification in the terms of financing, including, the loan balance, loan term, or interest rate.
Short sale. A short sale enables you to sell your property for less than the balance that remains on the loan. If your lender agrees to a short sale, you can sell your property and pay off all or part of your debt. This is an option you should strongly consider if you no longer can pay on your house.
Deed-in-Lieu of Foreclosure. A deed-in-lieu of foreclosure or DIL allows you to transfer your home’s ownership to the owner of the loan in exchange for a release from your debt obligation.
The Numbers Of Foreclosure
Foreclosure can either be either necessary or can be avoided, depending on your financial situation. If your house is worth much less than what you owe, it may be in your best interest to walk away from the default. Doing so can give you time to save money for another place to live.
However, if you have just missed a couple payments, you can find out a way to make up the missed payments by either adding them to the end of the loan’s terms or catching up on them through various means. Even if it means filing bankruptcy, you can keep your house if you do not want to move or you feel you cannot continue to afford the current payments.
When It Makes Sense To Keep Your House
It makes sense to keep your current home when you are only a couple payments behind. If you can streamline your debt through bankruptcy proceedings, you can begin anew and start making more affordable payments. You need to speak to a skilled foreclosure attorney or an attorney who is well versed in both foreclosure and bankruptcy laws.
