Becoming a homeowner is a great step even if it has to come with the mortgage. On the event that making continuous payment for the mortgage is getting impossible, you have options that you can take to avoid facing foreclosure and eventually losing your home through a sheriff sale. Here in this article, we’ll look at a few of the available ways to follow in this regard.
Apply for a loan modification
Loan modification is often the first step taken by many people when paying mortgages becomes difficult. If your income status can cope with an adjustment to the monthly payment with lower interest rate and other adjustments, you should call your loan modification attorney to start a modification process for you. If you think this will not be the best idea, a deed in lieu of foreclosure should be another option.
Deed in lieu of foreclosure
This simply means giving the property back to the lender or bank. This will be a mutual work-out plan between you and the mortgage company. This is far better than having a sale through foreclosure. You will not have that kind of damage to your credit like a foreclosure would do.
Remember that this is not always welcomed by the lender and don’t be surprised to have a no for an answer. When this happens there is yet one more option – a short sale.
Go for a short sale
A short sale is advisable especially if you have some equity in the property. You can have a quick sale that is enough for you to pay off the loan amount and you may also make some profit in the process, who knows!
Before following any of these methods, always contact a loan modification company like loanmoddepot.com/ for guidance.