How to Avoid a Foreclosure Right Now

How to Avoid a Foreclosure Right Now

The current housing market has homeowners facing foreclosure in record numbers. However, there are remedies that you can use that will allow you to keep your home.

The key to success is acting quickly. Don’t wait for foreclosure proceedings to begin, since it can be difficult to stop them. If you are finding it difficult to make your payments, now is the time to take action.

We’ll go over some specific steps that you can take to save your home. These same steps have already worked for thousands of homeowners and they can work for you. Be wary of any services that charge money to avoid a foreclosure. The remedies we’ll be discussing here are completely free and legitimate.

We’ve also included some great tips from the Secretary of HUD, and other experts. Don’t take a foreclosure lying down! You have the power to save your home, you just need the right information and tools.

Step One To Avoid a Foreclosure

Ask your bank to renegotiate the terms of your loan. They don’t want to foreclosure on your property and they may be willing to work with you. This is not a refinance, but a renegotiation.

If your credit is good and you have a good payment history with the bank, this is a great option.

Step Two to Avoid a Foreclosure

Refinance your existing mortgage. This will depend largely on your current credit status, how much equity you have in your home and your payment history with the bank.

It is a good idea to try to refinance with more than one bank. You can increase your odds of getting an approval if you widen your search.

Step Three to Avoid a Foreclosure

Request a forebearance. This will allow you to defer your payments until you can get back on your feet. Instead of having late payment charges, you can simply move these payments to the back end of the loan.

This is also called a payment holiday. Be honest with your bank and let them know how long you will need to start making payments again.

Step Four to Avoid a Foreclosure

Sell your home. This is an option that may be difficult, depending on the state of the real estate market in your area. However, it may be the best solution for you.

Contact a real estate agent and see how the market is doing in your area. They may already have a buyer lined up!

Step Five to Avoid a Foreclosure

Seek Federal Assistance. There are numerous programs in place to assist homeowners that are facing a foreclosure. Many will allow you to get a loan that will help you get current on your payments.

These Federal Loans will only need to be repaid if and when you sell your home.

A HUD counseling agency can assist you in learning more about these programs.

Step Six to Avoid a Foreclosure

If you are a current or past member of the US Armed Services, there are special programs in place that can be very helpful.

These programs will assist you in either getting current on past payments or a refinance for your current loan.

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