Avoid Foreclosure Commerce City
Even if you have not missed any mortgage monthly payment but you are concerned that the next few months might not be easy for you keep up with making the payments, now is the time to take action if you ever want to avoid foreclosure Commerce City.
In case you didn’t know, there are several options to avoid foreclosure Commerce City, however, the number available at your disposal keeps on growing smaller with the more time you take to act. Also, these options will determine if you will be able to keep the house or be forced to leave it due to foreclosure.
Keeping the house
If you are going through a rough financial period, be it short or long term, the best thing is to start weighing your options as early as possible. This gets even more important if you want to keep the house after the whole saga. Maybe you lender may let you refinance the loan or modify the loan in a manner that will lower the monthly payments you have to make but at the same time prolong the duration of repaying the loan.
Even if you have fallen behind several months and you now have to pay a significant amount of money to get things back in order, you may still find a temporary or permanent solution that will help you to avoid foreclosure in Commerce City.
- Refinancing your loan is one way you can use to keep your house. This means that you will be getting a new loan with new terms, rates as well as monthly payments, thus replacing your current mortgage. Even if the value of your home has depreciated or maybe you owe more money than the market value of your house, you may still be eligible to refinance your loan thanks to the government’s Home Affordable Refinance Program. The good thing with refinancing is that it will not create a negative event on your credit history; it makes your payment more affordable by adjusting the terms or lowering the interest and lets you stay in your house and hence avoid foreclosure.
- If you want to keep your house, another way to avoid foreclosure is to agree on a repayment plan with your lender. This will allow you to pay what you have missed and make the mortgage current over a given period of time. Unlike foreclosure, this channel will leave your credit history less damaged – but you get to keep your house and avoid foreclosure.
- Forbearance is another option that can work wonders, but this needs you to talk to your lender. It may also depend on what you still owe the bank, but generally, it involves some form of leniency from your lender, where, depending on your situation, they may suspend or reduce the monthly payments for a limited period of time so that they afford you time to work things out and resume making payments normally.
- Loan modification is an option too, where your lender might agree to change the original terms of the loan, be it the amount paid per month, the duration of repaying the loan or even the interest rate, among others. This will also make things a little easier for you with respect to repaying the loan and thus let you keep the house.
Leaving the house
There are cases where homeowners struggling to avoid foreclosure Commerce City are quite sure that they won’t be getting back on their feet anytime soon. These are the people who can’t even think about keeping the house because it is not an option at all.
Of course, it’s not such an easy decision to make, but leaving your house might just be your best shot to avoid foreclosure on your credit report.
- One way is to agree to a short sale, where the bank will let you sell the home for less than the remaining mortgage balance. You can then use this money to repay a portion of the balance – or all. This is a great way to reduce or eliminate the mortgage debt.
- You can sign a deed in lieu, where you will agree to hand over the ownership of the house to your lender and thus eliminate your mortgage debt. This channel may even earn you up to $3000 to help you with relocation expenses.
- Selling the house to cash buyers like Denver Property Flip is another great option. If the house has more value than what you owe, you’ll use the proceeds to clear the debt and still keep some money to help you start over again.