subject: Why You May Need Foreclosure Help [print this page] Nobody purchases a home thinking that they cannot afford it. Indeed many people purchase them as an investment in the future, their faith in solid bricks and mortar. In recent times this has not proven to be the case and learning how to prevent foreclosure is something that a lot of people have to learn to do.
There are many reasons why people can fall behind in payments. If you have recently lost a job then it may be difficult to make up the payments. If you are suffering from an illness or a death in the family it can be stressful and problems can start to mount. Losing a home in a divorce settlement can make life financially difficult.
The first thing to do is to call your lender and make clear what your financial situation is. It is vital that you do not delay or you could be served with a notice of default. Discussing the matter with your lender could help you come to an alternative arrangement to help you pay off your arrears. This is known as forbearance. If you do agree to an alternative agreement than you must stick to the payment plan or you could once again face a notice of default, a court date and likely eviction.
In some rare occasions a lender might forgive a payment that you cannot pay back, provided that you can then return to paying the agreed amount at a later date. This rarely happens so it is best not to bank on this occurrence happening. What is more likely is that a lender will add money each year to your agreement until you have caught up with the payments.
It may be worth asking to see if your interest rate can be frozen or reduced in order to allow you to make the payments. It is worth seeking independent financial advice to see if you qualify for this. In some instances you may also be able to qualify for a second loan that can help you repay the debt. A financial advisor will be able to say if you meet the criteria necessary for this kind of loan.
These are all things you can do before you are served the notice of default. This is why it is better to get in contact first to prevent this from happening in the first place. If you cannot meet the payments there are a few other options available to you.
There are companies that also offer buy and rent back services. This is where they buy your house and you rent it from them after it has been sold. Like any service it is worth shopping around to see what people offer for your house. While this is a stressful situation, it is important that you still get the best possible deal.
Finally you can sign a deed in lieu of foreclosure, effectively giving back your home to the lender. In any of the options available to you it is possible to negotiate maintaining occupancy in the property.
Remember any of these options will negatively affect your credit rating which is why it is vital to look at every possible option before a notice of default is served. For more information, contact an independent financial advisor.
