Our goal at Everic Properties, LLC is to help you avoid foreclosure by buying your house. If your intentions are to stay in the house, there are steps you can take yourself without our help. If you exhausted all your resources and still need to sell, we are here if decide it’s best to sell your property.
Please read on….
Most people who sign a mortgage don’t intend to walk away from it. Still, unforeseen circumstances — huge medical bills, lost jobs, divorce or eroding property values — can overwhelm even the best-intentioned borrower. A simple twist of fate can leave you facing a homeowner’s worst nightmare: foreclosure.
Communicate with your lender
You should contact your lender as soon as you know you will miss a payment. Rest assured, where foreclosure is concerned, you and your lender are on the same side. Lenders do not want your house. If you seem to be a good risk, the lender will offer to help keep your mortgage afloat. But be forewarned: If you seem like a bad risk, the lender may cut its losses by taking steps to foreclose and evict you as quickly as possible.
The key is to contact the lender before your debt gets the better of you. The sooner your lender knows of your problem, the more help it can provide.
The foreclosure spiral
The foreclosure spiral begins when your loan payment becomes 16 days overdue. At that point, your mortgage servicer will try to contact you to work out a repayment schedule to bring your loan current.
If your first payment becomes 30 days delinquent and the next month’s payment looks doubtful, collection attempts begin in earnest. If your payments fall 90 days behind, the servicer will likely refer your mortgage to an attorney or other entity that will initiate formal foreclosure proceedings.
Ways to avoid foreclosure
Here are some options your lender may offer you if you miss a payment and want to avoid foreclosure:
• Repayment plan: If you suffer a short-term financial setback (expensive car repairs, a medical emergency), your lender may provide some breathing room by agreeing to let you pay off your missed payment in two installments over the next two months. (Lender’s preferred choice, but you may end up making a higher monthly payment than your current one. Please make sure your lender gives you as many months as possible to pay the missed payments)
• Loan modification: Mortgage servicers can adjust the terms of your loan — most often by lengthening the amortization schedule, lowering the interest rate or rolling the delinquent amount into the loan and reamortizing the new balance — to help you bring the loan current.
• Short sale: The lender allows you to sell the house for less than the outstanding loan amount, takes the proceeds and forgives any remaining debt.
• Short refinance: The lender forgives some of your debt and refinances the rest into a new loan.
• Refinance with a “hard money” loan: You won’t like the high rates and fees of a hard money loan — one from a private lender — but it may buy you time to sell your home and avoid foreclosure.