A foreclosure hangs over your head like a dark cloud on a sunny day, so don’t ignore the rain when it starts to fall on you. How do you deal with one looming over the horizon? Read your lender’s updates to know where you stand in the process. Make sure you have easy access to all of your mortgage paperwork so you can understand what can happen if you don’t make your payments.
If they’ve only started sending notifications of non-payment, they haven’t filed for foreclosure yet. However, ignoring pending legal action letters will not serve as an excuse in court. You might still have time to resolve the problem before it becomes official on your credit report.
Here are 5 ways to avoid foreclosure and get a better handle on your financial situation!
Work With The Government
Time is of the essence if you want to avoid foreclosure. By familiarizing yourself with the process and comparing this information to any letters or other communications from your lender, you can know how quickly you need to act in order to avoid losing your home. Contacting your state for more information about the specific time frames that apply in your foreclosure case is a good first step.
There are a number of government-sponsored programs that can assist you in getting out of your bind. Many of these initiatives are based on the value of the property versus the amount still owed on the mortgage.
Experiences like an upcoming foreclosure can help you move towards financial responsibility. It’ll be a lesson on understanding how to budget, how only to buy the necessities, and setting aside for savings.
Taking a long, hard look at your finances is a good way to avoid foreclosure. Make a budget that meets your basic requirements, such as food, gas, and mortgage payments. Be sure to keep a list or an online sheet. Skip the charges for optional or unneeded goods, such as credit cards or expanded cable packages. Consider getting a cheaper phone plan, and think about eating out less.
To make more money and avoid foreclosure, you should look for an extra job or do small gigs from social market boards and local listing sites. Another idea is to sell some of your nicer home furnishings to get a quick infusion of cash. These are all great solutions if you’re facing hardships but still make mortgage payments for the next few months.
Rent It Out
There are a lot of creative ways to avoid foreclosure. Renting out your property to someone is one of them. Their rent payment now becomes your mortgage and insurance payment, so you’ll need to find another place to live that’s less expensive.
You could also reorganize your house so that you can share it with a friend and, depending on the size of your mortgage payments, they may be able to pay a substantial amount of it to help fit better within your budget. On the other hand, renting out your property might bring about additional problems, and run the risk of unexpected expenses as well for things like repairs.
If you want to avoid foreclosure, you need to stay consistent in your budgeting strategy. To keep your house in good condition, always check if it needs any maintenance, and be sure to provide house rules for tenants to avoid any damage.
Sell your Louisville home fast
To avoid foreclosure before it starts, doing a short sale is your best bet. With a short sale, the bank negotiates a selling price with buyers that falls below what you owe on the house. Although banks would rather not own properties themselves, they are often willing to take an offer close to the loan principal — even if the property is worth more than what’s left of its mortgage. That makes for prime investment opportunities for buyers who have cash readily available.
Have you been approached by the company that sold you a house? Are you at risk of foreclosure? For a free consultation, call Rylo Homes at (502) 317-8553 or send us a message to learn more about why approaching a cash home buyer in Louisville like us can help guarantee the profits you want without all the delays associated with a traditional home sale.
The best part? We can guarantee a lucrative cash offer for you in just 72 hours! Plus, you can choose the closing date in just 14 days or less.