Are you facing the reality of losing your home because of a mortgage you can’t afford? Read on as we discuss your options when it comes to the real estate battle you have to face.
Things used to be so easy, weren’t they? It was pretty much the pinnacle of the American Dream to be able to purchase a home. However, if you’re facing foreclosure, you are not alone in this regard. It was roughly around two to three years ago when a startling number of American families defaulted with their mortgage payments.
What happens when people default on their mortgages?
If the issues that made parties unable to pay their mortgage are not resolved, foreclosure is imminent. However, it is not something that instantly happens. If you have defaulted on your mortgage, there is still some time before your lender sends you a notice.
The sort of notice you get will usually depend on the state your property is on and who your lender is. You will more than likely receive an initial notice. If payments still aren’t made, you will be given a notice of sale. If you’ve ever seen Happy Gilmore, this is exactly what happened to his grandmother’s house.
What can you do?
First off, it would be important to get yourself a legal representative. Law firms that specialize in real estate disputes are the best ones to go to in times like these. They can provide you with a clear understanding of what your options are.
If you are suddenly unemployed, you can apply for unemployed benefits. While it may not be much, it can still help.
What options are there if you want to keep your home?
The simplest one would be to pay your lender the amount due plus any late fees that you may have incurred. We understand, however, that this may be unreachable for some. So what other options are there?
You can choose to rent out your property. However, it must be noted that there are taxes and landlord responsibilities that come with this option. You may also choose to seek forbearance. This is an agreement in which you pay a portion of your standard payment for a set period of time. After this period has lapsed, you must return to paying the regular fee as well as the additional amount that has not been paid.
What options are there for those who cannot keep their homes?
You may consider choosing a short sale option. A short sale will help you avoid foreclosures and will shield your credit score from taking a massive hit. You will need to have your property evaluated. If the findings are that you owe more than what the property is worth, it’ll be time to approach a real estate specialist. They can help facilitate the short sale and you can enter a short sale agreement with your lender.
Keep your eyes open and you’ll be able to find a way to face your troubles head-on.