As soon as you notice that you have an impending mortgage problem which may have caused you to miss a payment, the first thing that you must do is to call your lender. Studies show that at least half of all the individuals in the US who have defaulted on their loans or missed their payment schedules never contact their lender. This is a mistake if you want to avoid foreclosure. In truth, lenders are not scary and will even discuss options with you. They are willing to help you work through your problems particularly with your missed payments.
Aside from contacting your lender, you have many other options to avoid foreclosure. These include the following:
1. Gather information. It is important that you learn all that you can about your rights as well as the laws in the state of Florida regarding foreclosure. You may want to start reviewing your loan documents today to determine what your lender may do if you can’t make your payments. Chapter 702 and Section 45.031 will help you learn more about proceedings and foreclosure laws.
2. Grasp the jargon. There are terms that you may have to learn more about which may include:
- Reinstatement: Although there may be late fees and other costs here, your lender will give you enough time to pay for the loan through lump sum method or by giving you a specific date.
- Forbearance: With this, you gain a reduction or cancellation of your mortgage payments. This can help you get back on your feet as you save money for your mortgage. Note though that the reduction or cancellation is only temporary.
- Repayment Plan: With this agreement, you will be given the exact time to repay the amount you owe. Often, this means that you will have to combine a part of the delinquent amount with your current monthly payment.
- Loan modification: This is only possible if the mortgage company grants you with this in written agreement. It states that there will be permanent changes on the original term/s of your mortgage so that it will be more affordable for you.
3. Get rid of your home. This may be a difficult decision for most homeowners, but for some this is the only way to solve their mortgage problem. If this is your case, you can do any of the following:
- Short Payoff: Quickly sell your house by offering lower than market price. Of course, this will attract buyers and you get to pay your owed mortgage. However, you can only get low profits.
- Deed-in-lieu of foreclosure: This is a cancellation of your loan but will only work if you agree to give up your property’s title to your mortgage company. Before that, you should have tried to put it for sale, but since there are no buyers, you will give it to your lender. The lender should also consent for this to happen.
If you are trying to get rid of your home, we can help you avoid foreclosure. Sell your house to us as we purchase homes in West Palm Beach and other nearby areas. More information can be found here: https://rescuerealestatellc.com/we-buy-houses/