Keeping the wolf away from your door means taking action early. Homeowners whose credit is good, when they see that their monthly payments are adjusting to a level they can’t afford, have the option of applying for a new mortgage.
But the housing mess (sub prime mortgages) has caused some lenders to go out of business, while other lenders are tightening qualifications for getting a loan, so that new mortgage might not be more difficult to get than in the past. For those who have a good credit history, acting quickly can make the difference. Contact a counselor who specializes in helping people avoid foreclosure, and learn about your options.
Prior to speaking to the foreclosure specialist, you’ll need to review your finances in depth. Have all your paperwork ready, such as your tax forms. Write down what you can or cannot afford, and why. Preparing a budget and being up front and forthcoming helps the counselor to assist you.
Keep in mind that your existing lender might be able to give some relief. There are still many lenders who are willing to work with you on keeping your home, because they want to avoid the costs associated with taking back a person’s home and putting it up for sale. Refinancing is one option, but not the only one.
The company that sends your mortgage bills and collects your payments is called the servicer. The lender hires the servicer to do this, and often a foreclosure specialist might find it necessary to deal with the servicer in assisting you with avoiding foreclosure. That company can only allow you a break if the lender authorizes them to.
The servicer’s loss mitigation department has the authority to negotiate a modification on your loan, sometimes called a workout. The payments can be modified, in a way that you actually can afford.
In a case where a foreclosure specialist was unable to have the loan modified so it would work for you—the payments might still be too high, or the lender is unwilling to negotiate—there is a last resort. To avoid foreclosure, it might be possible to get the lender to delay the auction on your home so you can sell it yourself. But that is not as easy these days either. Everywhere, the market is glutted. Housing prices are falling. The money you get from the house might not cover the total amount owed, and you might still have loan payments after the sale of the house.
In any event, when looking for a foreclosure specialist, it’s wise to remember that anyone who obviously wants to help you avoid foreclosure by helping you sell you home quickly, is most likely not the person who is looking out for your best interest. Some opportunists will offer this method as a way of avoiding foreclosure, but it really should be thought of as a last resort.
Remember delay is the enemy. Act today!
Get a foreclosure agent that specialize in Texas Foreclosures. |
