Have you been missing payments on a real estate loan? Or, are you struggling to keep current on a real estate loan but expect that you won’t be able to keep up the payment for much longer? If so, you are going to be facing foreclosure on your home.
Some of the different strategies to use to avoid foreclosure are as follows:
1.Temporary Indulgence: A grace period of 30 to 60 days used to bring your mortgage current. This indulgence is appropriate if a contract for sale has been ratified and there is a verified closing date, there is an insurance settlement, or a pending receipt of approved funding (refinance).
2.Military Indulgence: Civilian borrowers who later enter the military are the persons who are entitled to this indulgence (under the terms of the Soldiers’ and Sailors’ Civil Relief Act).
3.Special Forbearance: Based on your financial situation, your lender may be able to arrange a repayment plan for you and may even provide a temporary reduction or suspension of your payments. The only way you may qualify for this is if you have proof of a reduction in income or an increase in living expenses.
4.Mortgage Modification: If you cannot pay your mortgage amount because your income has been unexpectedly reduced, you may qualify for a Mortgage Modification. You also may be able to refinance the debt and/or extend the term of your loan. For this, you must be able to submit proof of your lowered income and your ability to pay a lesser loan.
5.Partial Claim: (applies to FHA mortgages only) you may be able to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage up to date.
6.Short Sale: This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. You can only do this if your house is not worth more than what you owe on the mortgage.
7.Deed-in-lieu of Foreclosure: If you don’t qualify for any of the other options, you may be able to “give back” your property to the lender. This won’t save your house, but a foreclosure is much more damaging to your credit rating than this is.