Paying the mortgage on your house can prove challenging even in the best of times. If you fall behind on your payments, you can quickly find yourself facing an upside-down loan with dire financial consequences. Instead of floundering and coming up on a foreclosure sale, there are proactive steps you can take to help avoid foreclosure and keep your property in your possession. Here are some of the best strategies to utilize for homeowners facing foreclosure.
Know Your Financial Situation
The best way to get in front of any foreclosure proceeding centers on your ability to make repayments and get back on track. This process directly involves developing a thorough understanding of the money you make on a monthly basis and your ongoing expenses. By understanding all facets of your budget, you can begin to form a comprehensive plan to pay back the mortgage payments that you have missed or help prove to lenders that you have the means to reasonably accommodate alternative payment options.
Be Aware of Your Rights
State and federal law provide homeowners in dire financial situations with avenues to avoiding foreclosure. According to federal law, lends can’t start the foreclosure process until your payments are 120 days delinquent, in most cases. You can also seek counsel from a mortgage foreclosure attorney or a HUD-approved housing counselor to help plot your next steps.
Know Your State Laws About Foreclosure
Every state has different protocols and laws about how they operate foreclosure sales. Everything from timelines, the types of foreclosure procedures, rulings on deficiency judgments, and beyond can vary based on your state. With the help of your foreclosure lawyer, you can know what protections are available. At the same time, you navigate the foreclosure process and attempt to keep your home or minimize the financial fallout in the worst-case scenario.
When All Else Fails, It’s Time for a Short Sale
There are still options available for homeowners who cannot do enough to turn the foreclosure around. One such way involves getting the approval of your lender to conduct a short sale. While you will not get the total value of your home back in the short sale, you can use the proceeds from the sale to help pay off the remaining mortgage balance and avoid taking as big of a hit on your credit score as you would with a foreclosure.
When you are staring down a foreclosure on your home, it can feel like you have nowhere you can turn to find help. With EZ Short Sales on your side, we can help you figure out a path forward and get you back to a place of financial stability. Contact our team today to get started!