Stop Foreclosure - Three Possible Financial Scenarios
If you are faced with the question of how to stop foreclosure, your options will depend on your current financial situation. The best choice for one person is not necessarily the best for another. Take a look at the possibilities below.
If You Can Continue the Monthly Mortgage Payments and All Future Payments
If making monthly payments is no problem for you, however you are not able to bring the loan current, then avoiding foreclosure will be easy for you. You are in a great situation. Here are your options.
Restructure the mortgage with your bank by either a small increase in the monthly payment or add more years to the loan. Or you can apply with a new lender and refinance out of the old loan, but ensure you improve the terms. Lastly, you can pay all the back payments as soon as possible with money from friends or family, selling some belongings, or getting a second job. But ensure to never miss payments again.
If Your Income Level Allows For Other Than the Full Monthly Payment
Bankruptcy can be a consideration in this circumstance. You would be asked to agree to a plan by the courts to pay your debts according t certain conditions. Bankruptcy may be a good choice for those who are in foreclosure proceedings and who have also accumulated a large number of debts.
It is a way that you can put your financial affairs into some kind of order and also keep your home. You should definitely see a lawyer if you are considering this option, and try to find one who specializes in bankruptcy. This can be done yourself if you research expert advice.
If You Are Unable to Make Any Consistent Monthly Payments
If you are in a bad financial crisis that is going to continue, then probably you will not be able to keep your home and the sooner you face up to this, the better will be the outcome. Once you see it this way, leaving your home voluntarily can be a good way to retrieve your situation when there seems no other way out.
Under some conditions it may be possible to rent out the house. This would be something to consider if the amount of the rent would be equal to or greater than the monthly mortgage payment. In this case, remember that there are other costs involved as well as risk of the tenant not paying the rent. You should also notify the lender to get permission and let them know your plans.
Also if the house seems destined for foreclosure, it is best to try to sell the property through a real estate agent instead of letting the bank take ownership. If you discuss this ahead of time with the lender they may approve since the home could be up for sale for quite some time.
If the selling price is greater than the loan balance, then by selling the property you can make a profit on the sale and save your credit rating at the same time. You could then buy a less expensive house and continue to be a home owner.
If your house is worth less than your loan, you may still be able to settle the debt by selling it. You need to talk to your lender about whether they will accept a "short sale". This means that they take whatever you get for the house, and agree to write off the rest of your debt. This is better for them than foreclosure where they have high legal expenses.
The drawback of short sales are that they show up unfavorably on your credit report since the loan was not paid in full. Negative entries on your credit report in some cases can be overcome by using an attorney or debt specialist. But foreclosure will weigh more negatively on your credit than a short sale.
How to stop foreclosure can be achieved by using many techniques, but depends heavily on your current financial condition. The more options you explore the better your results will be.
If You Can Continue the Monthly Mortgage Payments and All Future Payments
If making monthly payments is no problem for you, however you are not able to bring the loan current, then avoiding foreclosure will be easy for you. You are in a great situation. Here are your options.
Restructure the mortgage with your bank by either a small increase in the monthly payment or add more years to the loan. Or you can apply with a new lender and refinance out of the old loan, but ensure you improve the terms. Lastly, you can pay all the back payments as soon as possible with money from friends or family, selling some belongings, or getting a second job. But ensure to never miss payments again.
If Your Income Level Allows For Other Than the Full Monthly Payment
Bankruptcy can be a consideration in this circumstance. You would be asked to agree to a plan by the courts to pay your debts according t certain conditions. Bankruptcy may be a good choice for those who are in foreclosure proceedings and who have also accumulated a large number of debts.
It is a way that you can put your financial affairs into some kind of order and also keep your home. You should definitely see a lawyer if you are considering this option, and try to find one who specializes in bankruptcy. This can be done yourself if you research expert advice.
If You Are Unable to Make Any Consistent Monthly Payments
If you are in a bad financial crisis that is going to continue, then probably you will not be able to keep your home and the sooner you face up to this, the better will be the outcome. Once you see it this way, leaving your home voluntarily can be a good way to retrieve your situation when there seems no other way out.
Under some conditions it may be possible to rent out the house. This would be something to consider if the amount of the rent would be equal to or greater than the monthly mortgage payment. In this case, remember that there are other costs involved as well as risk of the tenant not paying the rent. You should also notify the lender to get permission and let them know your plans.
Also if the house seems destined for foreclosure, it is best to try to sell the property through a real estate agent instead of letting the bank take ownership. If you discuss this ahead of time with the lender they may approve since the home could be up for sale for quite some time.
If the selling price is greater than the loan balance, then by selling the property you can make a profit on the sale and save your credit rating at the same time. You could then buy a less expensive house and continue to be a home owner.
If your house is worth less than your loan, you may still be able to settle the debt by selling it. You need to talk to your lender about whether they will accept a "short sale". This means that they take whatever you get for the house, and agree to write off the rest of your debt. This is better for them than foreclosure where they have high legal expenses.
The drawback of short sales are that they show up unfavorably on your credit report since the loan was not paid in full. Negative entries on your credit report in some cases can be overcome by using an attorney or debt specialist. But foreclosure will weigh more negatively on your credit than a short sale.
How to stop foreclosure can be achieved by using many techniques, but depends heavily on your current financial condition. The more options you explore the better your results will be.
About the Author:
Visit "http://help-stop-foreclosure-now.com" for professional and expert advice to stop a foreclosure. By doing your own research, using solid information, you can get the help with foreclosure you need to develop a plan of attack.
posted by Debt Consolidation Loan at
2:53 AM
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