Introduction
zack childress-Many people fail to meet the mortgage payments for a period of time. This is a difficult period for them due to recession, death of a dear one, divorce and health problems. When they fail to make their mortgage payments, the lender takes possession of their mortgaged property and this situation is called as foreclosure. It is said that the home has gone into foreclosure. But, steps can be taken to prevent this scenario. Zack Childress, a whizz in real estate investment and short sales, tips you on how to avoid foreclosure
Avoid Foreclosure-Don’t give up:
Just because your home is in the danger of going into foreclosure, don’t give up. Take the following measures to curb this state of affairs.
Negotiate with the lender:
Do this as soon as you feel that you are going to default on your payments since once you have missed more than three payments, the lender will persist on foreclosure or send your papers to an outside company which may not be willing to relent. Do this quickly. Here are the options that you can ask your lender to consider
- Loan modification:
The monthly payments may be reduced and the missed payments will be added to the loan principal amount. The loan will then stretch over a longer period of time.
- Forbearance:
You can sign an agreement with the lender saying that you will catch up on the payments at a certain time. Then the lender will delay the foreclosure.
Zack Childress-Cut down on unwanted expenses and find ways to earn:
You can take up an extra job to increase your income. You can sacrifice on luxury expenses (considered to be at the moment) like television, going out, internet, cable and so on. Try selling unwanted things and making money out of it. These actions will show your lender that you are trying your best to make the payments and he may make some adjustments to benefit you.
Get government help:
The federal government has many programs to save people’s homes from foreclosures. You may get your loan modified and reduce the monthly payments under the HAMP – Home affordable modification program. There is another program called the HARP under you will be able to refinance your loan amount.
Filing a bankruptcy case:
Filing for bankruptcy will help you prevent the foreclosure since the lender cannot proceed with the same when the case is open. He can do so when the case is closed.
Zack Childress-Market your home yourself:
When your home is nearing foreclosure, then market your home through a good realtor. This will save your credit rating and make you feel better that you are not letting off your home in an auction.
Conclusion
Zack Childress gives these basic tips to prevent foreclosure of homes. There are other ways to prevent foreclosure of homes which are not discussed in this article. Foreclosure creates psychological imbalance and affects your credit rating on top of the depressed feeling that you are going to lose your home. So try your best to prevent it.
