Agreed, foreclosures are bad news, but it’s just a bend in the road and not the end of it. With a little planning and forethought, you can manage your credit situation and save yourself from more financial mess. Here are five mistakes you can avoid when faced with foreclosure.
Being too little too late
You still have a few weeks to work things out after you’ve been served with a foreclosure notice. Do not wait until the last minute to do something. Lenders are more than happy to help, provided you contact them while it’s still a win-win situation for both you and them. Talk to one to see if you can work out a payment agreement or modify the terms of the loan.
Not considering alternatives
You might be able to make a few modifications to your loan that make it easier for you to pay the monthly mortgage payments. A short sale is a popular option and is appropriate when the proceeds from the sale are less than the balance you owe on the mortgage, and the lender is ready to accept the payoff. Some owners sign a deed-in-lieu of foreclosure – meaning they hand over the deed to the house in return for an agreement canceling the loan.
Not knowing all the options available
There are several options for people who want to get out of a sticky foreclosure situation. Contact a lawyer or a foreclosure expert to explore your options and save your home.
Not calling the lender
As mentioned earlier, lenders are more than happy to help you avoid foreclosure. That’s because foreclosures are expensive! They cost 30-60% of the loan balance. So make sure to contact your lender and ask for easier payment options.
Refusing to sell before foreclosure
If all other options fail, you can sell your house before the foreclosure goes through. Call us if you’d like to sell your house quickly for cash. We buy houses in Pittsburgh in less than two weeks and will take care of the paperwork and pay for closing costs as well! Call us for more details.