You find that the total consumer debt at the end of 2018 was almost $4 trillion which is an indicator of the financial straits people are in across the United States. You find that the mortgage repayments can become a particular struggle when the money is tight and this can lead to foreclosure. The good news is that there are ways in which you can prevent the foreclose and save your home which we are going to discuss herein.
The first tip is to work it out. One thing that you will have to do is to speak to the lender before the embarrassment. It is essential to note that most lenders don’t want to take your home and they might be willing to negotiate your terms and find a solution. For that matter, you should talk to them about your option as soon as possible. Some of the modifications that you can opt for are forbearance, debt forgiveness, and repayment plans.
Besides, you should seek a buyer. Here you will have to find someone who is willing to buy your house. With this, you will be saving the lenders the hassle of looking for a buyer because after all, that is what they will do. In this case, you will have to speak to the estate agent so that you can know how valuable your house is and how long it will stay in the market. It is essential to note that the lender is likely to stop the foreclosure if you have a ready buyer.
Apart from that, there is also deed-in-lieu. In this case, the homeowner will sign the deeds of the house back to the lender. In this case, the house will be effectively given to them, the mortgage is forgiven and foreclosure stopped. This will also help in protecting your credit rating.
Besides, we have short-sale success. You find that this is when you can buy or sell real estate at a price that is below the mortgage amount that is owed by the current homeowner. Remember to negotiate with the lender to see if it is an option. They might buy this idea because it will make them avoid the time and expense of repossessing the house.
Last but not least, you should file a lawsuit. Here you will have to file a lawsuit against the lender. You should know that this will only work when you don’t own promissory note, violated the homeowner’s bill of rights or didn’t follow the requisite steps in the process of foreclosure. One thing that you should know is that you are likely to succeed with this if they are foreclosing outside the court system.
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