With the foreclosure rate ever increasing, the market has been flooded with stop foreclosure programs. There are so many foreclosure assistance solutions available to homeowners it can become overwhelming. Knowing where to start getting help and understanding your options, can be the hardest step of all.
If you started missing payments on you’re house and find yourself falling further behind, it’s time to start looking for help. When looking for foreclosure assistance, you want to make sure you choose the right solution for you personal needs. There are 2 main things that you need to keep in mind when looking for foreclosure help.
• First make sure you are not getting involved in some sort of foreclosure assistance scam. There are people that will take advantage of others in there time of need. Research any companies you plan on getting involved with; make sure they are legit. If there is any question in you mind, move on to someone else.
• Look for options that will save your home, although it may not always be possible. There are plenty of assistance programs out there, look to one whose first priority is to save you home. Some “foreclosure assistance” programs are only looking to buy cheap houses.
Now you know the two main things to keep in mind when looking for foreclosure relief. Read over our top 7 ideas for foreclosure assistance solutions.
1. First thing you should always do is talk to you mortgage lender; this is the number one thing you can do. This way you can find out where you stand and what options are available through your lender. Be honest with your lender, but keep in mind your priority of saving your home, see what solutions they can come up with. The sooner you go to them, the more likely they can help you, especially if you haven’t missed too many payments.
2. Refinancing your loan is always a good idea if you haven’t waited too long. If your adjustable rate mortgage has increased drastically, it should be your first consideration. Lowering your interest rate will save you a lot of money and will most likely help you avoid foreclosure. Refinancing is usually only available when you’ve missed less than 3 payments and still have decent credit.
3. Ask your lender about Forbearance on your loan. Forbearance can help reduce your mortgage payments or even delay them for a time period without any legal action. This is a great option for someone that has had a job loss or extreme financial problems, explain it to your lender, and ask for a Special Forbearance.
4. Selling your home may be a good option for you if you’re still in the pre-foreclosure stages. (have not gotten a actual foreclosure filing) Obviously it takes time to sell your home, so the quicker you get it on the market, the better. Selling your home is a sure way to avoid foreclosure.
5. Some companies will offer you a special repayment plan. This means your lender will allow you to repay your past due amount by adding part of it to your monthly payment each month until you’re caught up. This is a good solution if you just fell behind on your bills due to temporarily money loss and can keep up with the new current payments.
6. You can also find other companies that will do a short sale on your home. A short sale will let you sell your home for less than the mortgage amount, with your lenders approval. This would be more of a last resort, after you have explored your other options.
7. Deed in Lieu is a final option you can explore, where you convey all interest in your property to the lender to satisfy your debt and avoid foreclosure. A deed in Lieu can still harm your credit, so be careful and find professional help before choosing this option.
Make sure you explore all possible foreclosure options before it’s too late. Help is available, you just need to take advantage of it while it’s still available.