Getting a house foreclosed on represents any homeowner’s nightmare. However, many factors can lead to this unfortunate event. Some foreclosures may be caused by the homeowners’ loss of income, a sickness or another type of life-changing event. We all know that ensuring a roof for ourselves and our family is paramount to life’s basic needs.
To help you avoid foreclosures, here are 4 solutions to explore.
- Try to get either an extra source of income or a better-paying job
If you are missing your mortgage payments due to financial hardship caused by the loss of income or a low income, you may look for another source of income to afford the payments. If you are facing increasing financial responsibilities and can no longer face the mortgage payments, you may want to seek out better paying opportunities to remediate to this situation. It will make it easier to catch up on your payments and avoid foreclosure.
Sometimes a lack of good communication or any communication altogether can lead to homeowners losing their house. It is crucial to keep the line of communication open with your lending bank to keep them posted on your financial challenges, and they may even make arrangements to help you out. It is actually better to contact them before you start missing payments.
3. Explore government programs helping struggling homeowners
If it is not too late in your discussion with your lender, you can explore government programs offering other helpful options such as refinancing. Refinancing could potentially allow you to reduce your monthly payment or get into a safer and more affordable fixed-rate. There are several refinancing programs allowing borrowers to get a new loan on their house.
4. You can consider a short sale instead of a foreclosure
If you have explored most solutions to no avail, a short sale may be a better alternative to a foreclosure. A short sale is technically better than a foreclosure as it allows you to sell the house back to the mortgage lender (typically a bank) at a lesser amount than the total mortgage owed. This process allows you to sell the house and use the proceeds to pay off your lender. Your credit will still be affected but not as bad as in a foreclosure.
Feel free to contact Wendy’s Signature Service to receive a knowledgeable and compassionate service to accompany you through this process.