Are you having insomnia due to impending foreclosure? You do not need to frantically run here and there looking for a way out. There are many options if you are missing monthly payments and want to avoid foreclosure. The most important is: BE PROACTIVE. Missing mortgage payment is not the end of the world. Here are some things you can do to stop foreclosure now:
1. TALK TO YOUR LENDER ABOUT REFINANCE.
Your lender or another may have special deals for homeowners. Ask your lender if they can refinance your loan. Your lender would help you if he/she perceives you are proactively seeking a means out of foreclosures. If you’re interacting with another bank or investment company, refinance proceedings might take time. You will need to remain current and ensure that all paperwork is done in time to avoid foreclosure.
2. SHORT SALE.
If you do not have equity in your home, you simply have to provide a case of difficulty for the lender. This is a much better option. Why? Because you do not need to wait seven years for your credit to recover as in foreclosure. The effects of the short sale on your credit are not as deadly as in foreclosure.
However, there is still a downside to short sales: If the sale does not cover the mortgage loan, the lender may want to make up the difference. Also, the procedures with the short sale takes time since it is not usually the bank’s first concern.
The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender. Seems a bad deal; where you find the buyer and put in the leg work but the bank gets all. Hold up! You owe the bank, don’t you? It’s reasonable that they take their money back. The bank either pardons the difference or gets a deficiency judgment against the borrower requiring him or her to pay all or part of the contrast between the sales price and the original mortgage value”. In a few states, this difference must legally be forgiven in a short sale.
3. DEED IN LIEU OF FORECLOSURE.
In this case, you give the bank your home. You stop foreclosure immediately and the property goes to the lender. This should only be a last resort for homeowners with no equity on their home. You’ll still walk away with nothing to show for the property; just like in foreclosure. However, you avoid the harmful effects of foreclosure on your credit.
4. SELL YOUR HOME.
When you have equity in your home and foreclosure is imminent, you should sell the house. You will probably not even need to employ an agent to sell your home; although it’s highly recommended to hire someone to get maximum price on the house.
More than 80 percent of house hunters start their home search on the net. Therefore your listing should be on all the top real estate sites like Trulia, Yahoo real estate, Craigslist and REALTOR.com. In a comparatively small amount of time, you can sell your home and take care of your mortgage problem or transfer your mortgage.
It is important that you do not sign anything until you talk to a real estate lawyer. Also, get more information from your local housing counseling agency on how to avoid foreclosure.