Foreclosure may be one of the most dreaded consequences of financial delinquency in America- with the economic backsliding and all; properties are increasingly being foreclosed across America.
When a property is foreclosed, this means that the lending institution has put a stop to a large loan, and the mortgagor has not been able to make three payments or more.
Often, foreclosed properties are never recovered, which is the reason why you should avoid foreclosure at all costs. While there is still a glimmer of hope, you should focus and attempt to get the loan reinstated.
Never say “die”, as they say. The following alternatives to foreclosure are possible avenues you can pay a visit to make sure that you’ve done everything to stop a foreclosure from happening.
Deal with the delinquencies
According to federal laws, lending institutions are required to bring a loan that has defaulted “back to life” when the delinquencies have been dealt with by the mortgagor. No matter how difficult it may seem, if you can acquire the necessary amount to stop a foreclosure from being ordered, do it. The hardship is worth it; otherwise, you lose your home.
In many, many instances, the lending institution would grant you forbearance, especially during the hardest times of your financial life. If you’ve recently been unemployed and you are literally living off your savings, then there might be a chance that you can still save the mortgage by partially paying for the delinquencies each month, along with the regular payments.
For example, if you have to pay a thousand dollars a month, and you’ve been behind for four months, you can work out a doable repayment plan that would involve a fraction of the delinquency plus the usual monthly payments. If all works out well, you will soon be out of the rolling financial storm.
In some instances, reamortization may be granted by the lending institution. Reamortization would definitely increase your monthly payments; but it is far better than being out on the streets because your property has been foreclosed already. Remember, reamortization will increase your loan, effectively updating your current credit history.
Sell the property
If you think that there would be no way that you would be able to save your own property on time, then it’s time to sell it. This will benefit you in two ways: the sale would allow you to pay off large loan that you owe, plus, you would be able to have a surplus amount from the equity of the property that you sold.
Now, there is a possibility that the buyer of your property would assume the responsibility of paying of the mortgage; in any case, you would still be working with a sum that you can use to get started once again.
The important thing is to never allow things to get out of hand- remember, losing your home is serious business. It is never pleasant to be homeless- never. If you think that the foreclosure problem is too much for you to handle, approach legitimate financial consultants or the lender.