How to Stop Property Foreclosure in Tough Market Conditions?
If you fail to pay your mortgage on time, your bank can foreclose the property. It only takes two missing payments before the bank will start sending you the late payment notice. Depending on your situation, if you took the traditional mortgage, you will get over 09 months to pay the pending amount.
Why People End Up in Foreclosure?
Foreclosure proceedings are usually preceded by a job loss, divorce, illness, traveling, sudden life changes or the change in interest rates. Financial problems and divorce create the most problems.
Being humans, we cannot predict the future. None of us can imagine what will happen in next 30 years, but we sign up for a 30-year mortgage. We wish everything will go fine, and it does, but at unfortunate times you may have to fight a foreclosure.
We can understand your frustration and despair. Do not panic, read this article and be ready to get personal support from a foreclosure attorney. Your best option is to apply for the loan modification and get time to save your home. Sometimes a few months can make a significant difference.
Home Loan Modification Programs in SF
Making Home Affordable (MHA) program is available in San Francisco. You can visit the official website to get in touch with counselors for free advice. The consultation will prepare you for the pre-foreclosure process and how can you stop foreclosure on your home.
Your another alternative is the HAMP (Home Affordable Modification Program). This program is applicable for Govt. owned loans and can be used to lower interest rates on the housing loans.
Loan Reinstatement
This solution requires you to pay off your loan in one installment. You must pay the late payment penalty. Most lenders will require you to pay all pending payments, but you can negotiate to pay in 2-3 episodes. For instance, if you owe $15,000, you can submit the amount in 3 installments of $5000. Doing so will make your loan current, and you can move on with life.
Loan Forbearance
Unlike loan reinstatement, you can apply for a forbearance period during unavoidable circumstances like a sudden illness and job loss. The lenders will suspend your monthly payments for a while to give you enough time to cope with your situation. You will be required to start paying the loan once the forbearance period is over.
Keep in mind, taking use of loan forbearance will extend the overall duration of your mortgage program.
Filing Bankruptcy
Bankruptcy can stop foreclosure in its tracks. However filing for bankruptcy is not recommended unless you have discussed the situation with a foreclosure attorney. If you have valid reasons and there is no way to stop foreclosure, then filing for bankruptcy may be the right choice.
After bankruptcy, you will get 3-6 months to move out of the home.
Exit Strategy—Sell Your Property
In some situations, it is not in your best interest to keep the home. Divorce and traveling are two of such conditions. During the divorce, spouses can decide whether they would like to keep the house or sell it.
An exit strategy also becomes necessary if you are going abroad for business/job reasons. In these situations, you can sell the home, take your share of equity and buy a new home whenever & wherever you want.
It is best to use this exit strategy when you have equity in the home. If you are selling an underwater property, then you must go with a short sale instead of a typical RE transaction.
About the Company
JJW Homes LLC is a residential redevelopment company. We established this firm with the mission to help people going through foreclosure and financial problems. Life can be tough at times. While we cannot heal your personal problems, we can help you sell your home with a hassle-free process.
Just give us a call to get a free, no-obligation quote. Our team will visit your home, and we will make you an offer. If you agree, we will begin the work. We will pay all closing costs, and you will get cash within ten days or at a date of your choosing.
[Photo Credits: AAG & BasicGov. & Aldon Hynes]