Foreclosure is a frightening thing to face. But there are things you can do to avoid it. Here’s some more information on what foreclosure is and what you can do to protect yourself and your family.
Foreclosure Is A Process
Foreclosure is a series of events during which a lender attempts to recover the balance of a loan from a borrower who is unable to pay. There are phases to foreclosure process that are determined by the state you live in. You should consult a foreclosure lawyer to help you understand your rights during this process. They’ll be able to advise you on your state’s laws.
There are steps you can take to avoid home foreclosure. You should immediately contact your lender if your circumstances change due to a loss of job or other unforeseen circumstance and you’re unable to pay. Remember that mortgage lenders would rather you stay in the home, rather than try to recoup the money on the loan via a foreclosure sale. Because of this, they are willing to work with homeowners that are willing to work with them. A lot of times mortgage lenders will still work with you even if you’ve missed three monthly mortgage payments.
If You Have to Sell
If you have to sell your home, chances are you’ll have a better chance of selling it if it has been kept in good condition. Remember that short sales are better than foreclosures. In a short sale you sell the house for less than the loan you owe on it in an attempt to quickly recoup the money owed on it. While lenders don’t typically forgive mortgages, they would rather have you sell your house via a short sale than try to deal with selling the house themselves.
Source: HGTV Front Door, Top 10 Things You Need to Know About Foreclosure, 2015