Purchasing your dream house is certainly a treasurable experience of one’s life. However, if it entails large monetary payments, there is a strong likelihood of property foreclosure by the lender —especially if you fall into some unforeseen financial problems.
To save your property from such a disaster you need to adopt a proactive approach. If you think that your home is at the risk of getting foreclosed by the lender, don’t panic. Instead of packing up and moving out of your house, you can take some actions to handle the situation.
Communicate with the Lender
Interacting with the lender might feel intimidating at first, but if you discuss your problems with the lender, there is a possible chance that they will listen to your concerns and even suggest a way out.
Lenders generally have experience of dealing with such situations, therefore, they tend to be sympathetic towards the borrowers. They may ask you to provide evidence of the financial hardship and other financial information.
Postponement of Loan Payments
If you have a reputable financial record, but encountered a temporary financial crisis, your lender can offer you forbearance.
Forbearance is an alternative to property foreclosure. Your lender may grant you a repayment plan with lower payments for some months. Also, if they find your financial situation adverse, they may temporarily suspend your payments.
Important Note: The CARES Act emphasizes that if a borrower experiences financial issues due to the global coronavirus pandemic, lenders can grant them forbearance federally-backed residential loans for 180 days. This duration can also be extended to 360 days, depending on the financial situation of the borrower.
Refinancing
Your first option, of course, is to request your lender to grant you a refinancing solution. If, however, you are a high-risk borrower, the lender may refuse to refinance your mortgage loan. If this happens, you can acquire a hard money loan from a private lender. This refinancing strategy is also helpful in avoiding property foreclosure.
Its, however, important to note here that refinancing with a hard money loan from a private lender should be your last option. By employing this refinancing strategy you may hurt your credit score. Besides, this method involves higher fees and interests.
Mortgage Reinstatement
If you’ve been behind on mortgage payments lately, reinstatement can be a good solution. With reinstatement, you can pay the amount back to the lender. This payment also needs to include the interests and penalty charges. Make sure that you pay this amount before the decided deadline.
Sell Your Home
Another option to avoid foreclosure is selling the house. By selling the home fast you can pay off the lender the due mortgage payments. This way, you may lose the ownership of your property, but it can save you from the heartbreaking experience of property foreclosure. This way, your credit score will remain intact and your financial reputation will not be damaged.
Final Word
If you’re caught up in a financial setback and looking for financial solutions to secure your residential property, feel free to contact RE-vest Investments.
At RE-vest Investments, we’ve got a team of financial experts who can provide you with thorough consultancy services if you’re facing a foreclosure.
If you need to sell a house fast and want to find best reliable home buyers, this is the place, now is the time. We offer the highest cash offers by purchasing residential and commercial properties. Besides, we also provide a myriad of other real estate services.
Contact us if you need help.
