Foreclosures may have slowed down since the 2008 recession began, but foreclosures remain common. Everything from an adjusting mortgage that becomes unmanageable to a job loss and other issues can create financial challenges that may be too difficult for you to overcome. If you have fallen behind on your mortgage payments, you may have received a notice from your lender that a foreclosure is pending. This can create a great deal of pressure on you, and you may not be certain if you should start packing and prepare for the worst-case scenario. After all, a foreclosure would result in you being kicked out onto the street and the loss of home equity. Losing your home and its equity are not inevitable, however, and there are a few steps you can take to retain control over the situation.
Talk to Your Lender
As a first step, reach out to your lender to discuss options available through them. Keep in mind that lenders typically do not want to foreclose on their borrowers. Foreclosures require them to pay legal fees, to clean up the house before selling it and more. It may also be listed for sale for months until an interested buyer comes along, and this timing costs the lender additional money. They would prefer that you retain the mortgage if possible. Therefore, if you discuss the issue with the lender, some lenders may be willing to readjust the terms of your mortgage or to give you a month or two of loan forgiveness if you are certain you will be able to resume making the payments after that point.
Consider the HARP Program
Another idea is to use the HARP program. The HARP program is designed for homes whose values have declined, and in these cases, owners may not be able to afford to sell without taking a huge loss. If this describes your situation, look for a lender that offers the HARP program to its clients. This is a substantial solution that can resolve your situation through refinancing your home based on a lower value, and it can help you to stay in your home.
Sell Your House to a Cash Investor
You can also sell your house to an investor, such as http://hlhomestx.com/sell-house-fast.html and others. Most investors pay cash for houses, and this means that you can get the quick closing you need to avoid foreclosure. Cash investors typically purchase homes as-is, and this means that you do not have to pay thousands of dollars to fix up and to stage the home before listing it. The cash offer will be based on the current value of the house in its unimproved state.
Explore Other Government-Backed Solutions
The HARP program is just one of several government-supported solutions that homeowners can use. For example, you can also use the PRA program, the FHA2LP program, the 2MP program, the HAMP program and others. Each are designed to be used in unique scenarios, and you can read through descriptions of these programs online to determine which is ideal for your situation.
The reality is that the loss of a home can create significant hardship for you and your loved ones. When your home is foreclosed on, you are forced to move immediately, and you will lose any equity in the home. Some of these solutions allow you to stay in the home, and all enable you to retain at least some of your equity. If you are struggling with your mortgage payments and have received a foreclosure notice, now is the time to take action and to begin reviewing some of these possible solutions.