7 Easy Ways to Avoid Foreclosure
| For Advice on Avoiding foreclosure call 434-220-7133 |
1. On Time Payments – It may sound like a silly thing to say but paying your mortgage on time is one way to avoid a foreclosure. If you do, you won’t lose your home. If you can’t pay all the bills and creditors you owe, you need to choose which ones to pay. The mortgage payments are connected to your house, and if you don’t pay it, the bank can take the home away by foreclosing on it. Credit card bills don’t work the same way. They are unsecured debts and they cannot do anything with your home other than possibly file a lien on it, but that won’t cause a foreclosure.
2. Talk to the Bank – Try to talk to your bank or even an attorney to see if you can get a change in the terms of your mortgage. If you had a medical problem or something that kept you from making payments but that is no longer the case, the bank may give you a specific amount of time to make up the payments you are behind over a period of time. Many times the bank will give you a specific dollar amount to add to your payments until you catch up. Sometimes the bank will agree to put the missed payments at the end of your loan. Maybe you were out of a job and you have work now, this would be a case where they may allow you to just start making payments again, and the payments you missed will be added on to the end of the loan amount. Often times the bank will agree to adjust your payment amount, interest rate or something else to help you get through some hard times without foreclosing on the home.
3. More Income – Try to have your income increased somehow. This may be by asking for a raise at work if you have a good working performance or asking to work some overtime hours for extra money. A second job will help to bring in additional income until you catch up on payments. Maybe you have a room in the house you can rent out for a few months to someone. Selling something that you have like a boat, motorcycle, big television or computer will help to make some additional money to pay the mortgage.
4. Refinancing – If the home you own has some equity in it, maybe you can refinance the loan to get your payments down and catch up those payments. Check out what the new payment amount would be first to see if you can afford the new payments.
5. Bankruptcy – If you file for a Chapter 13 reorganization bankruptcy you will have to continue to make payments and make them on time. More than likely you would not be able to file a Chapter 7 because you have a home which is an asset. Although this is all just a temporary fix, you have to make payments and be completely within the terms of the bankruptcy in order to keep your home. If you don’t, the home can be foreclosed upon.
6. Deed In Lieu – You can sign a deed-in-lieu of foreclosure which signs your house back over to the bank and you won’t have to go through the legal and court proceedings of a foreclosure.
7. Sell Your Home – If you can no longer afford the home, you may consider selling it. It’s a last report but it will keep you from being foreclosed on or kicked out of the home.
No one wants to have their home foreclosed on. Some of the tips above may help you avoid going through that process.
Rob Alley Realtor/Owner of Virginia Real Estate Solutions at Remax Assured Properties
434-220-7133
roballeyrealtor@gmail.com
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Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
What a great article! Love your blog !Thanks a lot for sharing , it is really useful to me!
ReplyDeleteReally i appreciate the above information because foreclosure in very essential part of real estate market and this can be happened if people didn't pay their money in time.
ReplyDeleteشقق مفروشة
Home refinancing is one of the options that homeowners choose to have when they know they are closing to foreclosure. license in real estate
ReplyDeleteYou can avoid foreclosure in the 7 ways mentioned in the article. You can talk with the lender regarding modification of the mortgage terms and conditions. You can do 5 jobs simultaneously to augment your income. You can even try for refinancing wherein a new loan is issued at low interest rate. You can pay off your existing mortgage with the new loan and avoid foreclosure.
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