Thereu2019s a new F-word these days, and it isnu2019t the one youu2019re thinking of.u00a0 u201cForeclosureu201d is the term those of us struggling to hold onto homes hate to hear. The worst-case scenario many people envision when they consider the effects of the current recession on their lives.u00a0 Youu2019ve heard the horror stories: a major hit to your credit score (usually somewhere in the neighborhood of 200-300 points), and a 7-year impact on your credit report.
Important Steps to Avoid Foreclosure at All Costs
Letu2019s start by talking over a few ways to avoid having this happen to you.u00a0 We already wrote a bit about short sales, and their effect on your rating. Here are some other ways you can try to keep the possibility of foreclosure from becoming a reality.u00a0 The first and most basic is to keep in touch with your lender.u00a0 No one likes hearing bad news, and it can be easier to let unopened bills and late notices pile up in your trash than deal with the reality of your situation.u00a0 If you find yourself falling behind on your payments, contact your lender and discuss the possibility of modifying your loan (and negotiating one with a lower interest rate, for example).u00a0 Occasionally, you can ask for forbearance, a period during which the lender agrees to let you temporarily stop making payments until you have your situation sorted out.
Suppose you decide instead to move, most likely into a more affordable home or a rented apartment.u00a0 In the event that the amount of your mortgage exceeds the value of the house, consider a short sale.u00a0 Sometimes, you can simply turn your home over to the lender and cancel your remaining debt (a process called a u201cdeed in lieu of foreclosureu201d), but like all of your other options if youu2019re at this critical stage, think it over carefully.
Whatever You Do, Act Nowu2014Your Situation Wonu2019t Fix Itself
Whatever your situation or plan for the future, we wish you the best of luck, and are always here to take any and all questions you may have.
Make sure you're dealing with a reputable company that keeps their word, so you don't end up in a lose-lose situation.
If somone cannot answer yes to all of these questions, how can you trust them to do what they say?
Work with Express Homebuyers and you'll have both Peace of Mind and Cash In Your Pockets.
- Do they have proof of $$ in the bank that shows they are making an honest offer?
- Do they have an A+ rating by the Better Business Bureau?
- Do they have video testimonials from actual customers that they can show you?
- Will they provide up to a $10,000 cash advance to help with expenses when moving?
- Do they have a physical office and staff to help you through the entire process, or are they just working out of their car?