Exercising Your Options To Avoid Foreclosure
There are alternatives to foreclosure that lenders may be willing to offer but only if you take initiative. If you are bent on saving your house, then instead of dealing with the pressure without taking action, pick up the phone and call your lender to discuss any available options. Also understand that most lenders would rather not go through foreclosure as well.
A foreclosure can turn out to be a messy process sometimes going through the courts. As such, most lenders involved in real estate Atlanta may look at other possibilities like modifying the loan or a short sale.
Besides negotiations with the lender, you also need to understand your rights as a homeowner. Some mortgage documents will give the lender a power of sale in the event of default in payments. It is also possible to have a right of redemption which allows you sometime to be able to stop a foreclosure? Also try to find out if you will be liable to pay the remaining balance on your loan in the event that your house sells for less.
There are many foreclosure avoidance counselors approved by the Department of Housing and Urban Development. These counselors can work with you without charging a fee. They are in a better position to explain what the law provides and any options you may have. Sometimes they will even act as your representative with negotiations between you and your lender.
A good alternative to foreclosure is loan modification. This is when the lender accepts to either lower loan payments or maybe change the loan type which may result to an extension on the loan term.
Forbearance is yet another option to foreclosure. Forbearance will temporarily suspend payments which you still have to pay at a later date. This is a good option to use if you are fall behind due to being laid off and have recently found new employment. The forbearance option will give you a chance to get back on your feet before having to resume mortgage payments.
If for some reason you are unable to come into a compromise with your lender on these terms, you might be lucky to get a short sale where the lender accepts to sell the house for lower than the amount of the mortgage. This has some ramifications on your credit score, but when your house is among the homes listed for foreclosure, it is can be a much better option.