Monday, December 26, 2022 / by Toi Holliday
How To Avoid Foreclosure
If you are facing the unfortunate window of foreclosure and can no longer afford to make payments on your home, or investment property, you are not alone and may have options.
Immediately contact your loan servicer or bank in which you are making your mortgage payments to. Briefly explain your situation and ask about your available options.
Here are some options that may be presented to you:
Repayment Plan, Loan Modification, Refinance, Short Sale, Standard Sale.
A repayment plan lets you spread out your past due amount over several months being added to your current mortgage to bring it current.
A loan modification is a change to the original terms of your mortgage loan and does not pay off your current mortgage. For example, the modification may include extending your loan term, modifying your interest rate, or changing your loan from adjustable to a fixed rate term.
Refinancing is when a property owner gets a new mortgage loan to replace the current loan. Most people refinance in order to get a lower interest rate and lower mortgage payments.