Falling behind in your mortgage payments can be very stressful. You worry what will happen if you lose your home, where you will live and how life will ever go on. But this is a serious problem that won’t go away on its own. You need to take responsibility and take action. There are several steps to take to try to avoid foreclosure and save your credit rating.
The first step and one of the most important is to contact your lender. Just because you don’t have a solution to the problem doesn’t mean that you should ignore their calls. Buy avoiding the calls, they are more likely to believe that you aren’t trying to correct the issue and then they will certainly start the foreclosure process. But if you call and explain your situation, you at least have a chance of working out a compromise. In some cases, the lender will freeze your mortgage to give you time to make the past due payments. Others will add the past due amount back into the principle of your loan. It is in essence extending the length of your mortgage but if it helps you to get back on track then it is worth it. The bank will be happy to be getting their payments and you will keep your home. But always be sure to be respectful and honest. If you are persistent and show that you are willing to work hard for assistance, then the banks will be more open to helping you.
If you have tried to strike a deal with your lender but come up with no help, then you will need to find another solution. Understand that if you let the mortgage go to foreclosure, you will be doing a great deal of damage to your credit history. Even if you don’t really want to move, selling your house would be a much better option for you than losing it. If you have equity built up from several years of payments, you might even be able to sell, pay off your mortgage and have a small amount to help you cover moving costs. But focus on the future and protecting your credit score. After you have sold your current house and corrected your financial issues, you will want to be able to buy another house in a few years.
If you are behind a few months or more, then time is not on your side. You need a quick sale to avoid the foreclosure process. Visit www.phoenixhomebuyersgroup.com to learn about selling your home to a real estate investor. In most cases they will make an all cash offer and will purchase your house in as is condition. You won’t need to make any repairs or renovations. They can close in as little as seven business days and that will let you pay off your past due mortgage and prepare for a new start. Selling your home might not seem like an ideal solution but it is certainly a better option that losing it in a foreclosure. Explore the option and see if it is a good solution for you.