What’s the best course of action when a homeowner is facing foreclosure?
That’s a difficult question to answer, but not impossible.
The last thing a homeowner wants is for their lender to repossess their home against their will… unfortunately, that’s exactly what foreclosure means… that the lender is going to sell the house to the highest bidder at an auction to recoup their money.
Because of that, the worst thing a homeowner can do is AVOID default notices and calls from the lender informing them of the pre-foreclosure process.
To avoid losing their home and severely damaging their credit, the homeowner should work with the lender throughout this process — it’s okay that the homeowner can’t make their payments (they’re definitely not the first person to go through financial distress) — the mortgage lender will likely be willing to work with the homeowner… and the sooner the homeowner reaches out during this process, the better.
Here are some ways to get ahead of the problem…
Short Sale Possibility — A short sale is when the mortgage lender allows the homeowner to sell for less than is owed on the mortgage. We buy homes fast for cash at Forge Property Solutions. Give us a call at 209.780.7608 to learn more!
Loan Mod (Loan Modification) — This does require effort on your part to work with the lender and find a solution that fits best. This can stop you from going to collections and can also lower your monthly payments, but please know all the pros and cons with this option.
File For Bankruptcy — This probably isn’t the best option in the world, but if things have gotten pretty rough financially, then a homeowner might consider filing for bankruptcy, which stops the foreclosure process in its tracks (for a few months, at least).
Secure Private Money — The homeowner could also try to secure private money to pay off their loan. But this will likely be at a much higher interest rate.
Facing foreclosure is never easy, but hopefully the above advice will help!