One in 10 homeowners faces the threat of foreclosure in the US Even the remainder have sleepless nights fearing they will soon lose their homes. As people lose their jobs and businesses collapse, many people are unable to make their monthly mortgage payments. In fact, many of them have also missed them. How can you save your home from foreclosure? Well, you can do it using some clever ways.
Here are some of them listed for you:
· Do not wait for the lender to send the ‘Notice of Default’. Contact the lender via a hardship letter as soon as you realize you won’t be able to make a payment or you’ve missed one.
· Timing and correct knowledge are extremely important. Don’t delay making a decision, but think through all the possibilities. For that you must have the right knowledge about home mortgages. The best medium for that, to begin with, is the Internet.
· Contact counselors designated by HUD (US Federal Department of Housing and Urban Development). They would help you manage your finances, make the best possible case for the lender, and act as your representative with the bank or lender. Unlike private counselors, they do not charge you a fee. They are paid by the Federal Government to help you save your home from foreclosure.
The options open for you to keep your home are the following:
– Loan modification
– Loan mitigation
– Refinance
– Deed in Lieu of Foreclosure
– Obtain a personal loan to pay the amount of the mortgage
– Change the amount of late payments towards the end of the loan term
– Dirty shorts
· Short selling is an option that really helps you get rid of the entire mortgage amount and still have some money to yourself (if you’re lucky). Banks do not usually have easy access to this option. The reason is that it is difficult to find a buyer so soon. Additionally, the amount of the difference generally serves as a benefit to the borrower (such as a discount or rebate). You should take this option in the following cases:
– You move out of town and no longer need the house.
– You know you can’t afford the house in long-term consideration.
– You are in urgent need of a lot of cash.
