How to Prevent Foreclosure | We Buy Austin Houses

How to Prevent ForeclosureIf you are behind on your mortgage payments, you are not alone. According to the federal reserve, about 3.86% of mortgages are in default nationwide. However, if you are not paying your mortgage, your home may be foreclosed on, and you will lose your property. Fortunately, even if you find yourself in such an unfortunate situation, there are certain things you can do to prevent foreclosure. Here is a list of some of them.

Discuss a Mortgage Modification With Your Lender

Once you have missed your mortgage payment, you should contact your lender immediately and discuss possible solutions. In most cases, lenders do not like foreclosure either and are ready to offer homeowners a loan modification. A loan modification may extend the number of years you have to continue mortgage payments, but you will have a more affordable monthly payment. Make sure that you can afford the new monthly payment though, or you will face mortgage delinquency.

Accept a Repayment Plan

Very often, lenders also offer repayment plans. A repayment plan will allow you to catch up on missed payments. It is an agreement between you as the homeowner and the lender that the past-due amount that you owe will be spread over a certain number of months. The length of the repayment plan depends on the amount that is past due and how much the homeowner can pay each month. In most cases, repayment plans last up to six months.

Organize a Short Sale

A short sale means that the home is sold for less than the homeowner owes on the mortgage. One of the main advantages of a short sale for the homeowner is the possibility of being forgiven for a portion of the loan. It is also important to remember that a short sale is impossible without the lender’s approval. It is recommended you apply for a loan modification first to check if you qualify for it. If you are not eligible for a loan modification, then a short sale may be your last resort.

Consult a Foreclosure Expert

Before you decide anything, it may be a good idea to contact the Department of Housing and Urban Development, which offers free housing counseling to homeowners struggling with their mortgages. A counselor will review your situation and may recommend certain government programs, the purpose of which is to assist you with your monthly payments. They also provide you assistance with managing your credit cards and debts, budgeting, and other financial problems.

Consider a Deed in Lieu

A deed in lieu is the process of voluntarily transferring the property’s title from the homeowner to the lender. Even though a deed in lieu is one of the fastest and most effective solutions to get out of a foreclosure, it is quite risky for both homeowners and lenders. Lenders do not like deeds in lieu because homeowners can easily sue them in court to try to get a property back. Most homeowners prefer other methods because of the negative impact of a deed in lieu on the credit score.

Sell Your Home to a Cash Buyer

There is one method that many homeowners do not know about — selling your property to a home investor or cash buyer. This method is good because it allows you to sell a property immediately, and it does not require any repairs or cleaning because home investors buy homes as is.

If you own a home in Austin or any other surrounding town, We Buy Austin Homes is ready to help. Our mission is to make the home selling process as easy and straightforward as possible for homeowners. If you decide to sell your property to We Buy Austin Houses, you will be provided with a cash offer immediately that you can either accept or deny. If you want to know more about the process or the company, feel free to give We Buy Austin Houses a call.