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Tips for Avoiding Foreclosure

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Did you know that some life events can have a more significant negative impact on your mental and physical health than others? According to the National Library of Medicine, certain stressful events can lead to or exacerbate diseases like depression and anxiety.

Some of the most stressful life events include job loss, moving, foreclosure, and financial or job loss.

Not only does a foreclosure impact your life immediately (finding a new place to live, leaving your current home, feeling embarrassed or frustrated), but it can have long-term consequences too

Borrowers who foreclose on a home will have difficulty purchasing a home for at least four to seven years following their bankruptcy. Additionally, some landlords may refuse to rent a house to someone with a foreclosure or may require that they pay a higher deposit.

Avoiding foreclosure is often the best choice for a homeowner. Here are a few ways you can prevent losing your home to the bank:

Communicate with your lender

Nobody enjoys talking to bill collectors. However, ignoring phone calls from your lender or leaving notices left unread is the worst thing you can do. Ideally, you should reach out to your lender as soon as you realize that you’re going to have trouble making your payment. Many lenders are willing to work with homeowners if they communicate.

If you talk to your lender early enough, you could discuss options like a refinance, loan modification, or forbearance. If you wait too long, these might not be options anymore.

Consider a loan modification or forbearance

Foreclosures are expensive, and they take a long time. Lenders don’t want to lose their investment, so they may be able to offer you alternatives. A loan modification could extend the repayment term, lower your interest rate, or lower your monthly payment.

Forbearance allows you to skip payments for a set amount of time. Depending on your lender, the total skipped may be due as soon as you end forbearance, or they could add the payments onto the end of your loan.

Review your budget and consider selling assets

If you’re unable to make payments, take a long look at your budget. Cut out anything that’s non-essential. This may include expensive cell phone plans, car payments, cable, streaming services, dining out, and new clothes. Limiting your budget to essentials may give you enough wiggle room to catch up with your payments.

Hit up your local library for free entertainment and check out local thrift stores for clothing and other items at a discount.

You may need to consider selling assets like a second car, jewelry, and electronics.

Get help

When you’re close to losing your house, getting help may be an excellent way to buy you a few months to catch up. Check with your local HUD office or the Department of Health and Welfare to see what type of services you might qualify for that could help you set aside funds for your mortgage payment.

Sell your home for cash

Selling your home can be the easiest way to avoid foreclosure. Traditional sales can take time. If your home has significant issues, you may not be able to sell your home without making repairs. We pay cash for houses. We understand the emotional and financial toll a distressed home causes, and we want to help make your transition easier. We’ll buy your home, in any condition. We’re also willing to work on your timetable to ensure that your move is as smooth and painless as possible.

Call us today and let us help you get cash for your home so you can make a new start.

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Further Reading

Selling property the traditional way isn’t for everyone

Selling a home is hard work. It can be stressful and time-consuming even in the most ideal circumstances. If you’re dealing with an investment property or a home that needs some major TLC, the traditional sales route might not be your best option.

Is Financial Stress Bringing You Down?

If you’re struggling to manage your finances, being able to maintain an investment property or even pay your own mortgage could feel impossible.

While it may feel overwhelming right now, there are a few things you can do.

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