Falling behind on your mortgage payments is obviously something that should be avoided if at all possible. If you are already past-due and are either in the foreclosure process or at risk of it happening, don’t give up hope.
Millions of people have been able to fix their financial situation and keep their home by taking the right actions. When it comes to foreclosures, one of the most important things to do is take action fast. The longer you delay, the more difficult it can become to fix the situation. With that in mind, go over these four things that you can do to help avoid foreclosure.
- Request a Mortgage Modification
There are quite a few different mortgage modification programs available for homeowners. Some of these programs are backed by the government, and others are simply offered by the mortgage company itself. Either way, you will need to contact your mortgage provider and request a modification. If approved, you will essentially have a new mortgage deal, which will almost always include having your payments brought to current.
- Ask to Move Payments to End of the Mortgage Terms
If you fell behind on your payment because of an interruption of work or some other temporary issue that is now over, you may be having trouble getting caught up. Many mortgage companies will be willing to bring your account current, and simply move the payments that are still owed to the end of your mortgage terms. There may be a fee involved with this, but it will be much more affordable than the late payments and other penalties that are currently in place. This is often done under a forbearance program.
- Negotiate a Repayment Plan
You can speak with your mortgage company about implementing a repayment plan that will help you get caught up with far fewer fines or penalties. When approved, your mortgage company will allow you to make a large payment each month until your past-due payments are caught up. This can be spread out over multiple months so you can manage the payment without breaking your normal budget. While there may be a fee for setting this up, it will put a stop to the foreclosure process and late payment penalties.
- Consider Bankruptcy
One of the most effective ways to stop a foreclosure is by entering into the bankruptcy process. As soon as you declare bankruptcy, your mortgage company is legally obligated to halt the foreclosure process until the bankruptcy is discharged. In most bankruptcies, your mortgage will be caught up as part of the discharge.
Foreclosure is not something to take lightly. If dealt with right away however, you could be able to keep your home and get back on firm financial footing far more quickly than you would imagine. If you need legal help through this process, please don’t hesitate to contact us to speak with an experienced attorney right away.
Auricchio Law Offices
Latest posts by Auricchio Law Offices (see all)
- Chicago’s Commercial Real Estate & An 89% Loss - April 15, 2024
