8 Steps To Rescue Your Home From Property Foreclosure
Foreclosure of your home is a horrifying nightmare that everyone should avoid. And if the sale of the home doesn’t cover your loan balance, then you may end up coughing up more money than you owe. Some of these smart moves can help you from property foreclosure.
1. Reinstate Your Payments
Reinstatement lets you pay back the amount as a lump sum payment that may include interest and penalty charges. This must be paid before a specific date. You can reinstate your payments if you fall back on your mortgage payments.
2. Make Mortgage Payments Your Top Priority
Prioritize your debts accordingly. Personal loans, credit card bills, and other financial debts can take a back seat until you pay back your mortgage amount completely.
3. Negotiate The Interest Rate
Foreclosure can be expensive for your lender, so contact your lender first, and try to negotiate the interest rate. It is easier for a lender if you make payments on the property, rather than dragging this issue to court and selling the property again.
4. Don’t Believe In Foreclosure Frauds
Swindlers may try to cash in on your situation. But, don’t let them prey on the desperate. They may promise to pick you up from the dust, but do not sign over the deed to your home.
5. Consider Restructuring The Loan
Try and revise your loan plan or negotiate to restructure the mortgage plan. You can extend the term of the loan, spreading it over several years. You will have enough time on your hands to pay the loan.
6. Get The Terms Of The Offer In Writing
It is always safe to have the terms of an offer in writing as it acts as a testament, and will be easier to verify later if required.
7. Seek Short Refinance
If you seek short refinance, the lender may agree to forgive some part of your loan, and refinance the remaining debt in an entirely new loan. As a part of the loan omitted, this can reduce your distress.
8. Try For Special Forbearance
An unexpected occurrence like a medical emergency, or decrease in income may come in the way of making payments on time. In such cases, your lender may consent to a repayment where you will temporarily owe lower payments, or there will be a short term pause on your payments.
The problem of foreclosure should be tackled at once, or it can be disastrous. Saving your home is no walk in the park. So, consider all your options, and make wise decisions to avoid property foreclosure.