If you are having difficulties keeping up with your mortgage payments, you may think the loss of your property is inevitable. If you are facing foreclosure, you can get help by first talking to your lender. You can try working out an affordable payment plan to avoid the foreclosure or to minimize your debt if it happens. If all else fails contact a “We Buy Houses Houston” company.
You should not give up and allow your bank to foreclose on your property without considering your options. The foreclosure process will terribly hurt your credit status and also make it almost impossible for you to purchase another home. Additionally, if the profit you get from selling your Houston home does not cover the outstanding debt, your lender may sue you for the remaining debt. However, it is possible to reach an agreement with your lender, and also establish a better way to pay off what you owe them to avoid foreclosure. Outlined below are some of the tips you can use to avoid foreclosure and also save your home.
Negotiate with your lender
The banks are aware of the fact that we are living in tough times and citizens are struggling to make ends meet. In case you haven’t missed any payment yet, you have the power to renegotiate and review the terms of your loan. If you are not too far behind on the mortgage payments, your lenders will also work with you. You may either get a forbearance or a loan modification. You can negotiate with your lender to take reduced payments for a short period, and this will enable you to remain in your home and also give you ample time to get back to your default payment.
Making homes affordable
In the last few years, the government has instigated several programs to assist struggling homeowners. The Modification program allows you modify your loan, reducing your monthly payments. On the other hand, the refinance program will enable you to adjust the rate of your mortgage to a fixed rate loan with a low-interest. However, these programs are both subject to some entitled requirements.
Filing Bankruptcy
Filing for bankruptcy will stop foreclosure dead in its tracks. When making a bankruptcy petition, government law denies any obligation authorities from proceeding with foreclosure exercises. Once the mortgage lender realizes that you filed for bankruptcy, the foreclosure procedure is halted. It’s good to know that the bankruptcy trustee just acts as a mediator. Bankruptcy will only get you more opportunity to recover financially from an impermanent inability, but it doesn’t set you free from your loan obligations.
Reaffirm
It can be a good option, but it might come with some hidden penalties. Basically, by reiterating your loan, you are giving another commitment to pay. Some of the states where affirmation is allowed, it can bring additional liabilities and especially if your property gets auctioned.
We Buy Houses Houston Companies
If you are falling behind on your mortgage payments and want to sell your Houston house fast, private investors can help you. However, in some circumstances, they might also help you remain in your home.