Losing your home is one frustrating experience that you wouldn’t want to go through. But sometimes it’s very likely to experience this especially if you’re experiencing delays in your mortgage loan repayments. You see, once you hit the three-missed payments mark, chances are that your lender will file a Notice of Default (NOD) and once they do, it’s only a matter of time before you lose your home if you don’t take necessary measures. Some of the top 5 valid strategies you can use to stop a foreclosure and related frustrations include;
1: Filing For Bankruptcy:
Yes, this might sound like an insane thing to do, but the moment you file for bankruptcy, the foreclosure sale of your home will no longer push through. This is because, the moment your bankruptcy file is detected, you start enjoying the benefits of an ” automatic stay” order, until the end o\f the bankruptcy procedure. And even with a motion of stay relief, the lender cannot carry on with the foreclosure sale for at least a month. So you get some time to organize yourself and strategize your next move.
2: Inform Yourself About Your Mortgage Rights:
Information is always power. So before you even sign that mortgage, it’s advisable to take time to go through the terms and conditions. This way you get to know what to expect from the lender in case you don’t make payments on time and decide whether you can handle the outcome or not. Also, since foreclosure laws vary from one state to the other, ensure to go through them by visiting your state’s Government Housing Office or their website( whichever is convenient to you)
3: Apply For A Loan-Clause Modification:
You can avoid foreclosure by looking into this option even before you face one. How? By convincing your lender to edit the ” due on sale” clause that’s usually available in most current mortgage application forms, to allow another interested buyer to take over your loan. And although your lender might request to fore-examine the interested buyer first, it’s nothing compared to a foreclosure sale where you risk losing everything.
4: Avoid Spending On Foreclosure Prevention Companies:
Yes, the first thing that might run in your mind once your home faces a foreclosure is to hire foreclosure prevention companies. While that’s a good option, you can still save yourself by redirecting that cash for mortgage repayment. This is keeping in mind that most of these companies demand hefty fees, which could be equivalent to two-three months of your mortgage payment.
5: Let Your Lender Know Immediately You Realize You Have A Payment Problem:
Yes, your lender might want to consider a foreclosure sale for your house, but the fact remains that what they really want is money and not the building. So if you can contact them on time and explain your circumstances, you might come up with a solution/agreement. For instance, most of them will be glad to take you through various payment options to suit your current financial problems.
From the above points, it’s evident that you can easily avoid your home’s foreclosure sale by doing the following;
-Knowing your mortgage rights
-Filing for bankruptcy
-Applying for a loan modification
-Contacting your lender immediately you realize you’re in a financial crisis
-Avoid foreclosure prevention companies and use the money to pay your mortgage.