Saving Your Home From Foreclosure – There are some tactics that Sir Winston Realty can employ for you to avoid disaster.
How to Avoid Foreclosure
It is important to scrupulously research the best interest rates available and pick the mortgage term that is right for you. For example, 40-year mortgages will typically allow you to make lower monthly payments than traditional 30-year fixed mortgages. That said, the interest rates for these mortgages tend to be higher. Use an online mortgage calculator to best estimate your total mortgage costs and plan ahead.
If your home is at risk of foreclosure, don’t start packing—take action. The following options for avoiding foreclosure should be easily available to anyone with a government-backed loan provider and built-in mortgage insurance, such as in an FHA loan.
Mortgage Modification
Loan modification allows you to refinance your mortgage loan or extend its term. The lender may settle for monthly mortgage payments within your financial means. However, to qualify for this alternative, you need to persuade your lender that your money problems are only temporary and will soon be resolved.
If there’s a deferral plan agreement in which the full or partial amount of the arrearages (or default amount) are placed at the end of the loan, the lender may require a lump-sum upfront or agree to a monthly installment for the difference.
Pre-Foreclosure Sale
If you are convinced about your deteriorating finances, the only option left for you is to sell your home for less than the amount required to pay the mortgage loan. You may be eligible for this alternative only if you default on your mortgage payments by a few months or as specified by your lender. Also, you may be required to sell your home in a specific amount of time.
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