Foreclosures are at an all time high in the United States. It is an unfortunate reality for many families. And the slump in the economy and the loss of jobs in practically every state doesn’t help the situation.
There are millions of homes in foreclosure and there are many more that will go into foreclosure by next month unless the homeowner gets some kind of modification of the mortgage.
But it doesn’t have to mean the end of home ownership. There are several things you can do to avoid foreclosure if you feel it’s the right thing to do.
“What do you mean if?”
Well, sometimes trying to save your home really isn’t the smart thing to do. For example, you bought the home at the peak of the housing bubble, you bought at $300k but the house is worth $170k now. You’ve sunk $20k into it and you’re already behind on all your bills.
Maybe even you have some other debts like credit cards, etc…
Is it really worth continue paying on $280k worth of debt for something that is only worth $170? You’d be paying $110k in order to??? Save your home? Save your credit?
One thing you could always do is try to sell the house for the same amount of your loan. Sure, it would be a wash, but at least you’re free from some crushing debt. And there are a ton of places that pay cash to homeoners, usually with a day or two like cash house buyers near Houston.
Obviously the choice is yours. And usually it is worth tying to save your home.
No matter what, always pay your mortgage on time every time. If you wait to pay your mortgage, things come up and there’s a possibility that you will spend the money on something other than your mortgage. You may find yourself stuck at the end of the month having not paid your mortgage.
If you can’t make your loan payments you should contact your lender right away. Don’t wait until you are 3 and 4 payments behind before contacting your lender. Nowadays, lenders understand how tough the economy is and they will do everything within their power to assist you with making it easier for you to make your payment.
Lenders have all kinds of creative programs that will help like refinancing, repayment plans and loan modifications. Contact your lender to see which program will be best for you and your family.
Just tell them your situation. Your lender will recommend a program that best fits your needs at this time.