SENECALIBRARY – AssociationI create a home that is a safe and nurturing place for me, where I am free to gather myself.
post image

What Are Some Foreclosure Prevention Strategies?

Foreclosure is a legal procedure that happens when a borrower doesn’t pay his mortgage. The creditor files a lawsuit against the debtor and repossesses the home for which the mortgage was secured. Borrowers who fall into financial difficulties and can no longer manage their mortgages can avoid foreclosure in several ways. Acting quickly is important. Most foreclosure avoidance processes depend on starting early while there are still choices to a foreclosure.

Housing Counseling Agencies

The U.S. Department of Housing and Urban Development (HUD) sponsors housing counselors throughout the country to help fighting borrowers avoid foreclosure. These counselors provide their services either for free or at a low cost: they will help your reorganize your finances and negotiate financing modification with your lender that will assist you save your house from foreclosure. Locate a housing counseling agency near you at the HUD website (see Resources).

Loan Modifications

Loan alterations change the terms of a mortgage so that you can manage your mortgage obligations. Loan alterations can reduce your interest rate, reduce the length of your loan and lower your mortgage balance. Authorities and charitable organizations provide programs to assist individuals negotiate financing modification (see Resources).

Mortgage Refinances

Mortgage refinances allow you to take out another mortgage with better terms to pay your current one and lower your monthly payments and general interest payments. Some lenders provide cash-out mortgages that allow you to borrow more than your existing mortgage balance and use the additional cash to pay other debts or invest as you want. Cash-out mortgages can increase your monthly payments and put your house at risk.

Foreclosure Alternatives

There are two main foreclosure alternatives in the event that you cannot manage your mortgage and do not qualify for financing modification or even a mortgage refinance: brief sales and deeds-in-lieu of foreclosure. A brief sale is the sale of a home for less than the mortgage rate owed on it. The creditor must agree to a brief sale, and might ask you to pay the remaining balance on the mortgage after the sale is concluded. A deed-in-lieu occurs when a creditor agrees to take over the home in exchange for canceling the mortgage. The creditor can still need the gap between the market value of their home and the mortgage balance. Talk to a housing counselor or lawyer prior to committing to a brief sale or deed-in-lieu of foreclosure.

See related

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • July 2016

Calendar

October 2019
M T W T F S S
« Sep   Nov »
 123456
78910111213
14151617181920
21222324252627
28293031  

Categories

  • Bathroom
  • Bathroom Guides
  • Bedrooms
  • Budgeting Your Project
  • Coastal Style
  • Color
  • Concrete
  • Decorating Guides
  • Dining Room
  • Doors
  • Eclectic
  • Eclectic Homes
  • Electrical
  • Fireplaces
  • Floors
  • Flowers and Plants
  • Furnishings
  • Furniture
  • Garden
  • Gardening and Landscaping
  • Global Style
  • Halloween
  • Handyman
  • Home
  • Home Cleaning
  • Home Offices
  • Home Painting
  • Hvac
  • Kitchen
  • Kitchen Guides
  • Life
  • Lighting
  • More Room Guides
  • Organizing
  • Patios
  • Remodeling
  • Renting and Tenant Rights
  • Roofs
  • Saving Water
  • Small Bathroom
  • Stone
  • Tile
  • Traditional Architecture
  • Trim
  • Tropical Style
  • Uncategorized
  • Wall Treatments
  • Water Damage
  • Windows
  • Wine Cellars
  • Yellow

Copyright SENECALIBRARY - Association 2025 | Theme by Theme in Progress | Proudly powered by WordPress