If foreclosure is looming over you like a black cloud on a sunny day, don’t ignore the rain. Make sure to open the letter they keep sending you so that you are also aware of where you are in the process. Find your mortgage documents, read them through and be certain that you are in the know of what will happen if you don’t make your payments. If they have just started issuing notices of non-payment, that means they haven’t issued the foreclosure yet. But if you ignore all those letters, then that’ll be a problem in the future since the judge won’t take any excuses. You may still have time to handle this situation and avoid a foreclosure on your credit report.
If foreclosure is looming over you like a black cloud on a sunny day, don’t ignore the rain. Make sure to open the letter they keep sending you so that you are also aware of where you are in the process. Find your mortgage documents, read them through and be certain that you are in the know of what will happen if you don’t make your payments. If they have just started issuing notices of non-payment, that means they haven’t issued the foreclosure yet. But if you ignore all those letters, then that’ll be a problem in the future since the judge won’t take any excuses. You may still have time to handle this situation and avoid a foreclosure on your credit report.
Work With The Government
Know what the foreclosure time frame is based on your state – it varies from one state to another. Compare all the letters you received from your lender to determine how quickly do you need to move. The Federal Government’s Housing of Urban Development department has a handful of programs that may offer you a way out of your situation. A lot of these programs are determined on the home’s value versus how much is left on the loan. HUD also has counseling options available to help you understand your financial situation and what options may or may not work for you.
Spend Wisely
One other way to avoid foreclosure is to take a hard look at your finances. Create a budget that will fit your basic needs (food, gas and mortgage payments) then skip the payments on unnecessary items (credit cards or expanded cable packages). You can opt for a cheaper phone plan and skip eating out. Consider making extra money, obtain extra jobs or find odd jobs to do on social market boards or other local listing sites. Look into your home furnishings and sell some of your high-quality items to make a little extra cash. These are great options if you are temporarily dealing with hardship and are expecting to be able to make your mortgage payments more successfully in the next few months.
Rent It Out
The smartest way to avoid foreclosure is to rent out your property to someone else. The rent money now becomes your mortgage and insurance payment. That means you’ll have to move out and find somewhere else to live that is more affordable. You could also set up your house and find a roommate to share your expenses on the mortgage payment. They may also be able to pay a larger portion of it to make it more affordable for you. Just watch out for the cons like an occasional headache from tenants or potential damage to your house.
Sell It
The most simple way to avoid foreclosure is to sell it. Many investors are waiting for a short sale to come into the market. This is where the bank will negotiate a sale price with a buyer and sells your house short of what is owed on it. Believe us when we say the bank does not have any interest in owning your house. They will make an offer that is close to the loan principal even if the home is worth more than what is left. This makes for a great investment opportunity for buyers with cash on hand.