How Can I Avoid Mortgage Foreclosure

How Can I Avoid Mortgage Foreclosure



How can I​ avoid mortgage foreclosure?
Mortgage foreclosure can occur if​ homeowners,​ who have taken a​ VA,​ conventional loan,​ or​ an​ FHA insured loan,​ default on​ the​ mortgage payments .​
Foreclosure can lead to​ the​ lender gaining possession of​ a​ borrower’s home .​
If the​ value of​ the​ home is​ less than the​ mortgage amount,​ the​ homeowner may have to​ pay the​ balance amount to​ the​ lender under a​ deficiency judgment .​
Foreclosures have a​ negative impact on​ the​ credit score of​ a​ home owner.
In order to​ avoid foreclosure,​ there are several things that a​ homeowner can do .​
These include communicating to​ the​ lender one’s inability in​ making payments as​ soon as​ possible and requesting assistance .​
If necessary,​ homeowners should back their communication with relevant financial figures such as​ expenses and income from various sources .​
They should not abandon their premises or​ they may not qualify for the​ assistance .​
There are several housing counseling agencies approved by the​ U.S Department of​ Housing and Urban Development; they offer up-to-date information on​ the​ various programs initiated by government and private organizations that are designed to​ help homeowners facing the​ prospects of​ foreclosure .​
Housing counseling agencies,​ which also provide credit counseling services,​ provide their services at​ no cost .​

In order to​ avoid forbearance,​ homeowners can try and apply for Special Forbearance .​
This may lead to​ a​ revision of​ the​ repayment schedule and in​ some cases the​ payment may either be revised or​ suspended .​
a​ rise in​ expenditure and a​ fall in​ the​ monthly income may enable homeowners to​ qualify for a​ new monthly plan .​
Similarly,​ mortgage modification may result in​ extension of​ the​ period of​ repayment and may open up refinancing options .​
Homeowners who have undergone a​ financial crisis stand to​ benefit from mortgage modification as​ they can chart out a​ more manageable repayment plan.
Homeowners can also take recourse to​ a​ deed-in-lieu of​ foreclosure .​
This entails voluntarily handing over the​ property to​ the​ lender .​
Such a​ deed does not hurt a​ homeowner’s credit rating as​ much as​ a​ foreclosure .​
a​ homeowner,​ who is​ a​ defaulter on​ payments,​ and does not qualify for other alternatives,​ has not been able to​ sell the​ house,​ and is​ not in​ default with respect to​ other mortgages,​ qualifies for a​ deed-in-lieu of​ foreclosure .​

A homeowner’s qualification for any of​ the​ above mentioned alternatives is​ determined by the​ lender .​
However,​ homeowners should be aware of​ solutions that are not genuine .​
It is​ highly advisable to​ take the​ help of​ housing counseling agencies in​ such matters .​
Homeowners in​ financial difficulties are liable to​ fall prey to​ scams such as​ equity skimming in​ which a​ homeowner is​ tricked into signing the​ deed of​ the​ property to​ another person .​
There are several counseling agencies that are not genuine and often charge homeowners for services that can be done for free .​
It is​ imperative that homeowners check the​ background of​ the​ counseling agency before deciding to​ go with a​ particular firm.




You Might Also Like:




No comments:

Powered by Blogger.