One of the biggest nightmares of any homeowner is for his property to be foreclosed. After all, he has gone a long way to acquire the property, and have been continuously working hard to fully own it in the future. Unforeseen circumstances however can happen. Fortunately there are ways to avoid such from happening.
Home and Garden Television shared some ways a person can avoid foreclosure of the property he is mortgaging. One of the ways mentioned is to find a buyer for the home that is about to be foreclosed.
“After your lender files an NOD but before they schedule an auction, if you get an offer from a buyer, you lender must consider it. If they foreclose on your home, the lender is going to simply turn around and try to resell it; if you present them with a reasonable short sale offer, they may see it as saving them the time, effort and trouble of finding a qualified buyer in a soft market. So, if your home is on the market, continue to aggressively seek a buyer for it, even after your lender initiates the foreclosure process.”
Read the rest of their tips here.
Raise More Money
The website Money Crashers also came up with a comprehensive article on preventing home foreclosures. On top of their list is to raise more money by rethinking the family’s finances.
“Start by cutting out all the extras in your budget, if you haven’t already. Cancel your cable TV, scale back to a cheaper cell phone plan, drop your gym membership, stop drinking bottled water, and quit going out to eat, even if it’s just for coffee in the morning. If that’s not enough to close the gap in your budget, it’s time to move on to more extreme strategies. Look for ways to slash your grocery bills, find affordable healthcare, and possibly even give up your car. Tightening your belt this much is painful, but it’s better than losing your home.”
Check out the rest of their advice here.
Do not be embarrassed
Balance.com for its part encouraged property owners facing a foreclosure to not be embarrassed and discuss the impending payment default to the lender. This way, according to them, options can be threshed out, and saving the property from foreclosure can be possible. Some of the options they mentioned include spreading out missed payments, changing loan terms, and adding back payments among others.
“When the lender files a Notice of Default, your options are limited. That is why it is better for you to call your lender before falling behind on your payments because lenders are often reluctant to work out repayment schedules after foreclosure proceedings have been commenced. You will be given a certain time period to bring the payments current, pay the costs of filing the foreclosure and stop the foreclosure. This is called reinstatement of your loan.”
More advice can be found in the original article here.
Preventing a foreclosure can be possible. It is best though that property owners try to work out their loan agreements with their lender to save the property or at the very least minimize the impact of the possible foreclosure to their credit rating.