Buying a home is one of the biggest investment decisions that one can ever make and it can bring the happiness of a lifetime. Therefore, nobody buys a home with an intention to lose it on foreclosure, but most people end up not paying their mortgage loans because of unexpected circumstances. There are situations that would render you unable continue paying your loan such as lose of job, bankruptcy, medical condition and permanent disability. This means that you are likely to default paying your loan as you should because of some of these reasons.
However, it doesn’t matter that you are behind your mortgage repayment—what matters is how you counter the situation to avoid foreclosure, which is the worst situation that a homeowner can find him or herself in. some people choose to run away from the reality, while others may react by remaining non-committal to finding a solution, while others are overwhelmed by the anxiety of losing their lifetime savings.
The reason why many homeowners end up losing their homes in foreclosure is because they begin to postpone the problem until when it is too late to reverse the situation. Some people are in haste to jump into options that would only make them lose their entire investment while remaining fully liable to repay their mortgage.
These are just a few ways in which people react naturally when they realize their homes could be lost because of defaulting to pay. As a homeowner, you need to know that making a sound decision when such a situation arises can go a long way in saving you the worry and helping you repay or settle the mortgage without having to undergo the frustrations that most go through.
Here are some of the ways that investors can help preforeclosure owners to avoid foreclosure in 2017 and beyond
Seek a Compromise to suspend the payments In an investment case, one only gets what he or she negotiates. Talk to your lender to see if you can suspend or adjust your payments to a trustee or a chosen financial institution. Just like a foreclosure is a blow to you as a homeowner, it damages a lender’s balance sheet. Some surveys show that lenders lose to the tune of 50,000 or even more on every foreclosure they execute. You might be perplexed by the lender’s ability and willingness to accept your option. By knowing this trick, you now have a leverage to negotiate in a way that will help you remain afloat while at the same time paying your mortgage.
Seek a Mortgage Modification Instead of a repayment plan, your investment partner may help you agree on a modification plan in which two or so options may be sought add back your late payments to the current loan and agree to repay it over a longer period or you can extent the repayment period and have the regular payments reduced.
Get Hold of an Attorney Sometimes you could be struggling with a process that is in error. By inviting an attorney to look it your case, you might realize that certain procedural errors that the lender might have committed, especially during the loan origination stage or the foreclosure itself. In this case, you will choose to file a lawsuit to suspend or stop it completely as you look for ways to repay the loan.
Forbearance Mortgage forbearance agreements are not standalone options, as they can work with other options. When a forbearance agreement is reached, your monthly repayments are reduced or temporarily put on hold for a shorter period, though. However, the interest on the loan continues to accrue despite the loan remaining unpaid.
Selling the home This is perhaps the last option that you can take if all other avenues fail. In this case, you would want to ask your lender to halt the foreclosure proceedings to allow you more time to sell your home. Selling a home when the public knows that it is already on foreclosure will get you a low price, this will obviously make you lose instead of getting more to help you sort out the problem.
Whatever your case is that is threatening to take away your hard-earned investment through foreclosure, be steadfast and consider talking to the right people. Do not procrastinate, instead be proactive to ensure that you leverage on negotiation skills and your like-minded investors. Ensure to follow through all your promises—this will make your lender to know that you are honest and that you can be trusted if given another chance.