A foreclosure is the result of defaulting, or not making the payments, on your mortgage. There are numerous reasons why a homeowner can fall behind on payments. Some of them are legitimate and some are not but the fact remains that if you don’t make the payments on your home, then you are likely to lose it in the foreclosure process. But rather than being forced out of your home, there are several steps that you can take to try to stay in your home.
The most important thing to do if you fall behind in your mortgage payment is to communicate with your lender. No lender wants to take possession of your house, they just want the money that they loaned you paid back. They are only making money if you are making your payments and they are getting the interest. So call and try to set up a plan to be able to catch up on your late payments. But first, sit down and gather your documents to support your request. Have your income statements or pay stubs, other monthly bills and your mortgage account information ready when you call customer service. Be up front with your circumstances and ask the bank to work with you.
One option is loan modification. This is a case where the bank agrees to lower the interest rate to help you to catch up on your payments. Another option is a repayment plan where the bank adds a portion of the missed payments to each of your upcoming regular payments. Once you have paid all of the missed payments the amount returns to your original amount. If you are not able to make additional payments or larger payments to catch up on your mortgage, then you might want to seek an alternative source to borrow from such as a friend or a family member.
If you have no clear way of being able to continue paying on your home, then you should consider selling it so that you don’t lose the equity you have built up. Because you have limited time to sell your home before a foreclosure occurs, you should consider contacting Phoenix Home Buyers Group at www.phoenixhomebuyersgroup.com. They can purchase your home quickly and at a fair price.