Get the Key Information
Before you begin to worry about the potential of a foreclosure, make sure you know all of the details about the terms of your mortgage. In a lot of cases, homeowners can have up to a two-week grace period to make their monthly payment before receiving warnings or notices. On top of that, it can take up to two or three months from your initial missed payment for foreclosure proceedings to officially begin. In any case, make sure that you go over your contract to find out exactly what the terms of your mortgage are. By understanding exactly what the parameters are, you’ll be equipped to make a payment plan – if possible – to avoid foreclosure. If you will be unable to make the necessary payments within the grace period provided by your lender, you still have options.
Communicate with Your Lender
If you’re concerned about your ability to make one or more mortgage payments, the best thing you can do is communicate directly with your lender. Over the past year, many families have experienced extenuating circumstances that have made it difficult to make every mortgage payment on time; lenders are prepared for this. It’s worthwhile to look into your options directly with your lender: see if they have any flexible plans available to you. Evaluate your payment history; if you’ve been diligent about making payments over the course of your mortgage, chances are that your lender may have flexible options available to you. You won’t know until you communicate with them directly.
Look Into Your Options
One of the options that might be available to you through your lender (depending on a variety of factors like your payment history, the type of loan you have, and the amount remaining on your mortgage) is getting a loan modification. Loan modifications are essentially changes made to your loan, mutually agreed on by you and your lender, that make your payments more manageable. This can include changing the type of loan you have, reducing your interest rate, or extending the time you have to repay your loan. Depending on your mortgage and outstanding balance, you might be able to get refinancing or a loan modification through the federal Making Homes Affordable program. Don’t give up before you’ve had a chance to explore all of your options.
Sell Your Home on Your Terms
If none of the above options apply to you or fit your needs, you always have the option of selling your home on your terms. This would enable you to use some of the money you make on your home to repay your mortgage and move forward with a clean slate. Depending on how much you owe on your mortgage, your home sale could also provide you with some financial padding so that you can consider all of your options going forward, whether it’s purchasing a new home or renting until you get back on your feet.
One of the downsides of selling your home, especially when you need to do it quickly, is that working with a real estate agent to list your home, schedule viewings, get offers, and negotiate can take months’ worth of time. That’s why, if you need to sell your home quickly, it’s a great idea to work with a company that can get you a fair offer efficiently so that you’re able to take care of everything and move forward with your life. Selling your home doesn’t have to be a stressful, long drawn out process; by finding the right company to buy your home, you can save months’ worth of time and still get the finances you need to make the best possible transition for your family.
If you’re facing a foreclosure, there’s no denying that it can be both scary and stressful – but the most important thing to remember is that you have plenty of options and resources to make the best decision possible. If you think that selling your home quickly might be a good option for you and your family, please don’t hesitate to reach out to us. We’d be happy to give you the information you need to get started.