Some Ways to Prevent Your Home Being Foreclosed On

 When you are behind on your mortgage things may seem pretty bad.  If you have missed your mortgage payment by at least a month, then you should be aware that at some time between the next two and three months that the mortgage company will be starting the foreclosure paperwork.  Here are some things that you can do to keep that from happening.
The first thing is if you do have the money to make the full payment, even if it is late do it.  Call the company to talk to them about it.  Most of the time they are willing to take the payment late provided it comes with all the late fees.  Then you can start working on getting the next month’s payment together.
 
You can try contacting the mortgage insurance company.  There are times where you can do what is called a partial claim and the mortgage insurance company will lend you the money to make the payment.  If you do this then you will need to make sure that you not only get the next payment together but you also need to work on paying back the loan you got from the mortgage insurance company.
You can actually change the term of your loan with a straight modification.   This can lower the interest rate and the monthly payments to an amount that you can afford every month.  By going this way you can have the missed payments added on to the amount that you owe.
There is a written agreement where you send a lump sum to the lender.  This is called forbearance.  Once you pay the lump sum the following months you will make regular payments in addition to half of your mortgage payment.
 
If you can no longer afford to make your monthly mortgage payments, you may qualify for a permanent hardship.  If you do this means that your mortgage company will give you up to 120 days to get your house sold before they start the foreclosure process.
If you decide to deed the house back to the lender it is called a deed in lieu of foreclosure.  This is in exchange for a release from your mortgage and all responsibilities under the mortgage.  While you do lose your house this way it is usually a better option than having your home foreclosed on.
There is something called a short sale, also known as a short payoff.  This works when the property values have declined since you purchased the home.  This way allows you to pay sell your home for less than the full amount that you owe on the home.  This is an option on the government’s part and not all home owners qualify for it.
A quitclaim deed transfers whatever interest you have in any particular piece of property.  When you accept the deed you assume all the risks.  It has no warranties as to the title; it just transfers to the buyer.

If you are going to have to move anyway, find a way to avoid foreclosure.  This is something that you want to avoid because it does affect your credit.  You do not want to damage your credit score if you do not have to.  It will look better for your future for you to find another way to deal with being behind on your mortgage.  Save yourself the trouble and get out while you can.

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