One of every 10 home owners are facing the threat of foreclosure in the US. Even the remaining ones have sleepless nights in the fright of losing their homes soon. As people losing their jobs and the businesses are crashing many people can not pay the monthly mortgage payments. In fact, quite a number of them have missed out on those as well. How can you save your home from a foreclosure? Well, you can do so using some smart ways.
Here are some of them enlisted for you:
· Do not wait for the lender to submit the ‘Notice of Default.’ Contact the lender through a hardship letter as soon as you realize that you won’t be able to make the payment or when you have missed out one.
· Time & right knowledge are utmost important. Do not delay in making a decision but think out all possibilities properly. For that you must have the right knowledge on home mortgages. The best means for that to begin with is the internet.
· Contact the HUD (US Federal Housing & Urban Development Department) appointed counselors. They would help you manage your finances, they would present you case to the lender in the best possible manner and would act as your representative with the bank or the lender. Unlike the private counselors they do not charge you any fees. They are paid by the Federal Government in order to help you save your home from the foreclosure.
· The options open to you save your home are as follows:
– Loan modification
– Loan mitigation
– Deed in lieu of foreclosure
– Getting a personal loan to pay the mortgage amount
– Shifting the amount of missed payments towards the end of the loan term
– Short Sale
· Short Sale is one option that actually helps you get rid of the entire mortgage amount and yet have some money to your self (if you are lucky enough). The banks usually do not agree to this option easily. The reason is that it is tough to find a buyer so soon. Further the amount of difference generally serves as a benefit to the borrower (like a discount or rebate). You should take this option in the following cases:
– You are moving out of the town and do not need the home any longer.
– You know that you can’t afford the home in consideration in the long run.
– You are in urgent need of a lot of cash money.