One of the biggest myths when it comes to foreclosure is the moment you get that first message from your bank or lender, your fate is sealed. This simply isn’t true, and if you don’t believe it, simply put yourself in the mind of a lender. When they provide a mortgage, or any loan for that matter, their end goal is to get their money back with interest, not to own your property. It’s to their advantage to try and help you if you’re struggling—and this mentality can help turn a foreclosure situation around.
How to Handle Foreclosure
The first step to handling your foreclosure situation is making sure the lender follows their legal responsibilities in the early stages of default. This includes providing you with sufficient notice that you are in default as well as providing written claims that itemize exactly how much that you owe. There are also certain provisions they need to make for certain groups. For example, The Soldiers’ and Sailors’ Civil Relief Act helps protect deployed members of the armed forces, so lenders need to certify in writing that someone is not a member of the armed forces before starting foreclosure proceedings.
If the foreclosure claim is legitimate and you’re in dire financial straits, it’s time to take action. Talk to your lender and explain the situation as early as you can. Many lenders will provide aid to people in need, but you need to make the case that you’re acting in good faith and making moves to remedy your financial situation.
This can mean many things. For example, if you lost your job, showing the way that you plan to get re-employed is important. If you are caught off-guard by a rise in the rate of your mortgage, show that you paid dutifully up until this point. Here are a few examples of the types of aid that lenders may provide in these circumstances:
- A loan change that reduces your payments
- Forbearance, which temporarily suspends payments (though you’ll have to pay later)
- Lowering your interest rate
- Eliminating past-due balances
Can I Still Sell My Home?
Foreclosure is an uncertain and stressful time for many homeowners. If all else fails, you can try and get out from under the financial burden while still having something to show for it by selling your home. However, there are two main reasons why it’s not as simple as calling up a real estate agent and handling the issue:
- Traditional home selling is a prolonged process, and if you’re in the later foreclosure stages, you’re likely not going to have the time to get it sold before your home goes to auction.
- The same financial hardships that may have led to your foreclosure may also make it difficult for you to make the renovations and repairs you need to get a house sold.
However, you can manage these issues by working with HomeGo. We’re able to help you sell your home quickly at a fair price, in a variety of different regions around the country, no matter the condition. Make the best of your foreclosure situation with HomeGo.