Are you afraid that your home could be sold in a foreclosure auction because you have defaulted on the payments of your monthly mortgage? The good news is that if you act promptly, you could make a loan modification agreement before the arrival of the auction date. Here are a few tips that can come in handy for you:
- Stay in your house while the foreclosure talks are continuing. This will help you claim benefits, like the FHA mortgage insurance.
- Once the foreclosure negotiations are done, surrender your home to your lender in accordance to the “deed in lieu of foreclosure” terms. A loan modification attorney can help make a deal with your lender to erase your loan balance and also ensure that this move doesn’t affect your credit score.
- Ask a loan modification lawyer to help you negotiate a forbearance agreement. This will help you seek other payment options while foreclosure proceedings are temporarily put off.
- Solve your financial problems in an organized manner. Give first priority to the most pressing ones, like your mortgage due date, which you can mark in red.
- Put your home up for a short sale (selling to a third party). To get the right deal with both the bank and your creditor, employ a loan modification attorney, real estate agent, or housing counselor; especially if you have multiple assets that may make you more vulnerable.
- Consider refinancing or restructuring your mortgage loan based on your financial worthiness. There are processing fees, like closing points and costs involved in mortgage refinancing which can make it expensive. However, the Obama Loan Modification Programs may give you unlimited options.
It’s important to inform your bank of your financial crisis before they will send you the foreclosure notice. Once you get the notice, don’t ignore it. Look for a loan modification company to help you tackle the problem. You can also get free help from the U.S Department of Housing and Urban Development (HUD).