One of the major causes of stress a homeowner may experience is foreclosure. Well, if you live in Tulsa and are struggling to make ends meet in paying your mortgage, consider yourself among the many other victims. The good news is there are ways to avoid losing your home. This article considers three practical ways of evading foreclosure, offering helpful tips that will protect both your home and sanity.
1. Communicate With Your Lender
One of the best ways to stop foreclosure is to keep an open line of communication with your lender. Of course, it is always tempting to avoid those phone calls or to ignore the letters; this is only making things worse. Maybe your lender does have solutions available, but they cannot help if they do not know what is going on.
Why Communication Matters
Think of this as a lifeline with the lender. By staying in contact, you are affording the lender the opportunity to work with you. You may be embarrassed or overwhelmed, yet most lenders would rather help a solution than proceed with the foreclosure process, as it is an extremely costly process for both parties. You might be surprised by how willing they are to negotiate.
Ask About Forbearance
Lenders may agree to a forbearance, where they lower your mortgage payment or even stop requiring the mortgage payments for a time. That could be what it takes to get you some breathing room, but in the best of worlds, you’d want to be sure about the terms of the agreement-how and when you’re going to have to catch up with those skipped payments.
2. Consider Loan Modification
A loan modification could be the key to avoiding foreclosure if your current mortgage terms are no longer manageable. Loan modifications involve altering the terms of your loan to make it more affordable, either by reducing the interest rate, extending the loan term, or in some cases, forgiving a portion of the debt.
Types Of Loan Modifications
- Interest Rate Reduction: This is when the lenders agree to a reduced interest rate in your mortgage, that consequently brings down your monthly payment.
- Extended Loan Terms: The lender will extend the length of your loan, enabling him to spread out your monthly payments over an extended period of time-or each will be smaller.
- Principal Reduction: This happens once in a blue moon, where the creditor reduces the amount owed on a loan. This rarely happens and may be given depending on one’s case with the client.
Eligibility And Process
You may generally want to show that there is financial hardship for the eligibility of the loan modification. This can be due to a job loss, huge medical bills, and other big expenses that can stop you from paying regularly. You might also want to attach the proof of income, expenses, and assets that will be enough to prove that you need a modification.
3. Sell Your Home Quickly
If you’ve exhausted all your other options and the threat of foreclosure is looming, sell your house fast might be the best way to avoid a financial disaster. This may sound like a last resort, but it can actually be a smart, proactive decision.
Why Selling Quickly Can Help
Selling your home before foreclosure can prevent the damage to your credit score caused by foreclosure. You may even be able to walk away with some equity to start afresh if your home is worth more than the amount you owe on your mortgage. Real estate investors and home buying companies can often purchase a property quick and for cash, thereby making this process as painless as possible.
Working With A Home-Buying Company
There are some companies in Tulsa, like “Sell My House Fast Tulsa“, which buy homes without long home inspections and repairs. Many of them can close within days, which is extremely critical when one is facing an impending foreclosure. With the help of a genuine house-buying company, one can avoid all the headaches of putting one’s house on the listing, then opening houses, and waiting for a buyer to approach them.
Conclusion
It does not have to be all over with foreclosure. You can take charge by communicating with your lender for other options such as loan modifications or even selling your home quickly. You can take control over your financial future by not waiting until it is too late. The sooner you start dealing with the situation, the greater the options you will have. You’re not alone, and help may be available to you.
If you find that you’d love to sell your house to get out from under your OK foreclosure…
Give us a call today at 918-200-9185 or click here to fill out the form and we’d like to make you a fair all-cash offer on your house.