True, foreclosures are depressing. But it doesn’t need to be an inevitable consequence of failing to pay your mortgage, especially when you take quick remedial action. There are several assistance programs managed by the government to help homeowners. Here are three things you can do to avoid foreclosure:
- Address the issue:
Do not ignore a foreclosure notice. If you anticipate delays in mortgage payments, remember to be proactive about keeping the stakeholders informed. Explain your situation and look for possible solutions. Give them as much financial information as possible. You could either speak to the bank or contact a HUD-approved housing counseling agency. They can help you with information about government programs and other services. You may either apply to modify or refinance your loan for lower payments.
- Deed in Lieu:
Homeowners facing foreclosure can sign a deed transferring ownership to the bank, albeit voluntarily. This is in effect, the same as a foreclosure, but less damaging to your credit score. Lenders allow a deed in lieu of foreclosure only in rare circumstances. To qualify for this, the homeowner shouldn’t be eligible for any other option, and his attempts at selling the house have come to a standstill. You could speak to housing counseling agency to determine if you qualify.
- Short Sale:
The best option is to sell your house even before the bank initiates foreclosure proceedings. Cash home-buyers help people looking to sell their house fast and for cash.
For example, at Area Code Home Buyers, we buy houses for cash and close as quickly as you want.
We’ll buy the house as is. You do not have to spend on repairs or cleaning. We’ll close when you’re ready and settle within seven days.