If you have found yourself getting too close to a foreclosure, there are a few things you can do to avoid losing your house to the lender. In this post, you will learn about several ways you can stop the lender from foreclosing on your Los Angeles house! It’s very important to do something when you are in foreclosure. Doing nothing is the worst and will ultimately lead to a trustee sale (your house being auctioned at the courthouse steps) and there is no turning back from there.
Nobody wants to find themselves in a situation where they may potentially lose their home. Between the financial loses and the mental turmoil, you can find yourself exhausted, broke and totally stressed out. However, there are a few things you can do to get yourself out of this unfortunate situation. Any of the suggestions below can get you out of foreclosure, if even for a short period of time until you can make a well-planned decision that is better for you in the long-term.
Realize Your Financial Situation Has Changed
Seems simple doesn’t it? The sooner you realize that your monthly income has gone down for whatever reason, you can start thinking about how to make up for the difference. Whether you were laid off, have medical issues or lost another source of income, the sooner you realize that this temporary situation may last longer than a couple months, the more choices you can think through. When you get to the point of being financially stressed or late on your payments, it’s much harder to think rationally and logically as to what you should do.
Sell Your House Fast
This might sound like a no-brainer, but the best way to get out of foreclosure is to sell your house as fast as possible. It may be that selling your house is inevitable, so realizing that early, making the decision and acting on it, can be the best result possible. You don’t have to sell it for pennies on the dollar, you can make the choice to sell it to a professional home buyer such as The Shenbaum Group, Inc., or you can try to pull off a fast FSBO. By selling your house fast, you will be able to pay off the mortgage and move one from the house that has been causing you so much stress. Make sure you are working with a trustworthy home buyer or have done all your research to be able to sell it on your own without creating more issues or stress.
Negotiate Out Of Foreclosure
In some cases, you will be able to contact the lender and negotiate your way out of foreclosure. At the end of the day, lenders don’t like to foreclosure on properties. Why? It costs lenders a lot of time and money to foreclose on a property. Plus, a foreclosure in a neighborhood will drop home values for nearby houses. Short of a forbearance agreement, you should call your lender and explain your situation. You will likely be given a little slack so long as missed payments aren’t the norm for you. Never be afraid to call your lender to work out a payment plan that works for you. This is the first and best way to avoid foreclosure. Ultimately, if you have a change in monthly income, selling your house fast may be your best bet, but stopping the foreclosure should be the first thing you want to accomplish to buy yourself some time to make the right decision.
Find Out About Forbearance Programs
A forbearance program may provide the short-term help homeowners need when they have found themselves in a tough situation. In this type of program, the lender will hold off on the foreclosure process until after the forbearance period ends. During the grace period, the borrower will have a reduced payment or be able to avoid making the payments entirely. Ultimately, to stop foreclosure, you will need to be able to pay all missed payments at the end of the forbearance period. It might be a good solution up front, however making the back mortgage payments can prove difficult for people who were tight on money in the first place. At least, it is an option and one that should be considered and discussed with your lender.
Find Out About A Loan Modification
A loan modification is a long-term alternative to managing a mortgage payment that you are consistently not able to make. Maybe there was a loss in the family or another major change and now you can no longer pay what you used to be able to. You can work with the lender to modify the loan, however, this will often increase your interest rate. Having your loan modified can be an excellent solution that allows you to stay in your house without fighting to pay your mortgage each month.
No matter which course of action you choose, you will be moving in the right direction. You may end up using a combination of many of the suggestions above. That’s great because you will have used all the options available to you to create the best outcome for yourself. Being proactive is key when someone’s financial situation changes. And it can also be hard to do.
Are you facing foreclosure on your house in Los Angeles County? We can help you to avoid foreclosure, reduce your stress and save your credit from being ruined. The sooner you act, the better. Time can either be on your side or against it, depending on when you decide to work through the issues at hand. We are more than happy to speak with you and help walk through all your viable options. We are even happy to help you pursue options that don’t involve selling your house to us. Of course, that is always an option, but we really do want what’s best for you.