When a homeowner misses a mortgage payment by a few days, that usually doesn’t put you in danger of foreclosure. Here are “Ways to Prevent Foreclosure.” The homeowner can usually make the payment shortly after the due date, and then let your lender or service company know it was paid.
If the homeowner has not paid the mortgage by the end of they’re grace period however, (usually 10 to 15 days), the mortgage lender has at that point, mailed you a past-due notice on the multiple mortgage payments behind. You then need to act quickly to get your mortgage back in good standing and avoid foreclosure proceedings.
Here are several options a lender may offer to help you avoid foreclosure. You may also want to talk with an Attorney, or you can simply sell the house quickly to We Buy Houses Cash Dallas, and maybe save your credit too.
Mortgage Payment
Should you have lost a job or been laid off, are you having a short-term financial setback, then your lender might be able to provide some advice and may allow you to pay off part of your missed payment in two installments over the next two months. Yes, this could be one of the ways to prevent foreclosure, if you have stayed in contact with your lender. At We Buy Houses Cash Dallas, we help homeowners in foreclosure by buying they’re house, not providing other assistance.
Ask Your Lender About a Loan Modification
Lenders of the mortgage and auto industry can make adjusts to the agreed upon terms of your loan. Some lenders will often stretch out the amortization schedule, which can lower the interest rate or set one complete payment on the back of the loan note. This will allow for a new amortization balance, which help you bring the loan current. Another of the ways to prevent foreclosure in Dallas.
Foreclosure and Deed-in-Lieu
When people speak of deed-in-lieu of foreclosure, it does involve turning over your house to a lender voluntarily, in order for one of the ways to prevent foreclosure. Sometime, going this route can help you avoid having to pay the remaining loan balance on your mortgage. There is a ‘but’ to this equation. But that depends on your lender and they’re rules and the state you live in. Before you get into a deed-in-lieu of foreclosure, ask your lender if they are going to waive any deficiency, which is the difference between your home’s value and what you still owe on the mortgage.
Short Sale
The next process is tricky. The short sale process happens only when the lender allows you to sell the house for less than the outstanding loan amount. Your lender will take the money offered, then forgive any remaining debt on the mortgage note. Short sales help homeowners in mortgage payment trouble. It helps you salvage some of your equity. Your lender must to approve it first. An investor who wants to buy the house, or a real estate agent with experience in short sales can help you find a buyer and guide you through the lengthy process of obtaining the necessary approvals. Short sales do not always happn, so be prepared for any outcome. Yet, another of the ways to prevent foreclosure, on your home.
Refinance Your Mortgage
This is again one of the ways to prevent foreclosure, on your home or other property. A ‘Short Refinance’ may be what you neeed to look into at this point. Your lender would forgive some of your debt and refinances the rest into a new loan. With a refi, it may or may not available for you. Usually when you refi a mortagge note, it’s happens in the aftermath of the mortgage crisis.
Work With a Hard Money Lender
Hard money lender are easy to work with, but you will not like the high interest rates and fees that come with working with it. A private lender, often an individual may be able to offer you a better rate and fees. These lenders can buy you some time to sell your home and another of the ways to prevent foreclosure. Do Not allow this to be your first option.
Contact Your Lender
Should you be having a hard time paying your mortgage, remember this, stay in touch with your lender. It’s not rock science, all lenders want their money repaid in a timely fashion, and the interest that comes with it. They do not want your house! If you’re a good risk, your lender will offer to help you with your mortgage issues. As with most lenders, if you’r’e a bad risk, lenders will simply cut their losses. This is when you need to know the ways to prevent forelcosure.
Should you be facing foreclosure, you must stay in communication with your lender. Lenders are able to work with you and afford you several options. As soon as you think there may be a problem paying your mortgage, you need to tell your lender. Remember to keep copies of all communicaiton with your lender whether it’s paper records or emails. Keep a calender and update it with dates to follow up with your lender and other important issues with regard to one of the ways to prevent foreclosure.
In case you did not know, the federal law requires mortgage lenders and servicers to help delinquent borrowers and work with them to get back in good standing. Tell your lender that you want to learn about options for loss mitigation.
You should also look for the letter that your lender should have sent to you, that describes all of your options to and ways prevent foreclosure, along with instructions and applications for any programs that might apply to you. Your lender or mortgage servicer may also provide a contact person who is available by phone to answer your questions and provide you information about your options to avoid foreclosure procedures.
Foreclosure Scams Are Out There
Unfortunately, people are out there masquerading as real and legitimate housing crisis counselors. They often try to take advantage of homeowners who are vulnerable. There are plenty of warning signs of scams out there that include those organizations that require advance payment. Never pay anybody or any company up front money that says they know the ways to prevent foreclosure. You must research all comers who say they can help you with a foreclosure.
