(This is a Guest Post)
There are a decent handful of methods that homeowners have been using to prevent foreclosure over the past few years. However, we want to look at three specific ways that a struggling homeowner could utilize to avoid foreclosure on their home or property. Following these technique allows a homeowner to either make their payments on time or to figure out an alternative plan. One of the first things that one can do when they’re looking to avoid foreclosure is to inquire about a mortgage program.
When an individual is experiencing financial difficulties, they should immediately consult with a mortgage program through the individual’s lender or by other programs. These mortgage programs are designed to help lower the individual’s home mortgage interest rate. The beneficial thing about these programs is that they are designed to help homeowners that have recently become unemployed, have seen a reduction in wages at work or other unforeseen circumstances that has caused them to default.
The next option that someone has to help avoid the foreclosure process is to try for a short sale. While this option is selling the home, it will help the person to avoid a foreclosure process on their home purchaser and loan record. In order to perform a short sale, the homeowner will need to sell their home for less than they owe.
To accomplish this, the individual will need to submit a short sale amount for their home listing and submit it to their bank lender for approval. Upon approval of the decision, the bank will allow the individual to sell the home and then arrange a payment plan to help pay for part of the loss that the bank incurred on the home loan.
Lastly, there is an option known as deeds in lieu of foreclosure. This is an option for those homeowners who may have tried to be approved for a short sale, but weren’t. A deeds in lieu of foreclosure is a program that is offered by the individual’s bank lender to allow people a settlement and to be released from the legal responsibilities of paying their home mortgage loan. Oftentimes, these programs usually allow the person to stay in the home for a certain amount of time before moving out.