If you are a struggling homeowner and in danger of falling behind for your mortgage payments or if you have already fallen behind, what should you do? Are you wondering if i sell my house fast Corpus Christi, TX, will it help? Be proactive in saving your home from foreclosure. Your lender does not want your home. He will potentially work with you to keep you on the property.
As for your part, you need to be organized and take action as soon as possible. Do your due diligence about the foreclosure process and know the options you have. Call your lender as soon as you feel that you cannot make the mortgage payment. You can find your lender’s contact information on the mortgage statement passbook. Explain to your lender why you cannot make the payment and whether it is a temporary problem. You will also need to provide the details of your income, household expenses, and savings. That being said, here are a few ways to avoid foreclosure and keep your home.
What can you do to avoid foreclosure?
If you are behind your mortgage payments and you see foreclosure sale coming in the future. There is still a way of hope to avoid the situation. If you can sense the situation, and you have e bit of more time, you can still apply for a loan modification or can think of any other option to workout. Below mentioned are a few things you can do to try to prevent a foreclosure from happening. As soon as you realize that there is a problem rising, contact your lender, they might have a solution for the borrower.
Gather up your loan documents and set up the file case
If you are already behind your mortgage payments or may have missed a few, the first and foremost thing you need to do is getting organized. Set up a file with a record of all the documents related to your home and put the important ones in that file. Include your loan documents like copies of the mortgage and the promissory note. Your file must also include –
- Monthly billing statements
- Record of the payments that you have made
- Escrow statements
- Copies of any letter sent to the servicer
- Correspondence from the servicer
- Insurance information
- Property tax information
Learn about your legal rights
Once your documents are gathered, take your time to thoroughly go through each and every document carefully so you know what exactly will happen when you do not make your payments. Your mortgage and the promissory note will contain important information like
- Possibility whether or not you can reinstate the loan by catching up on the past due amounts. State laws may provide you the right to reinstate.
- The monthly late charged amount
- What other fees the servicer can charge if you fall behind your payments.
- As per federal law, the lender cannot start the foreclosure until you have 120 days delinquent in your payments.
Organize all your financial information
Organize all your financial information along with your loan documents. If you are self-employed, collect your recent pay stubs and profit/loss statements, bank statements, federal tax returns, supporting documents for any additional income received like social security, alimony, rental income, etc.
Figure out your total monthly income including the monthly gross wages, self-employment income, overtime work, child support, social security, alimony, etc. Include our monthly expenses like your credit card payments, mortgage payments, car payment, student loan payment, utilities, food and entertainment, Condo fees, etc.
Your servicer will then use this information to see if you are eligible for an alternative to foreclosure.
Review your budget
Now that your income and expenses are figured out, it is time to review your spending habits and create a realistic budget until the circumstances improve.
Look out for different ways to reduce your daily expenses. If you are used to buying a cup of coffee every morning or eating your lunch out daily, then these costs can add up. You can have other expenses like cable TV, gym membership, or other forms of entertainment that maybe you can eliminate. If you have fixed payments like your credit card debt, you can negotiate with the bank for a lower monthly payment.
Just think about the different ways that you can cut back on spending money. If you can eliminate these costs, you will be in a better place to make your loan payments.
Know what options are available
Borrowers often have access to permanent or temporary loss mitigation options. This helps them avoid foreclosure. Here are a few possibilities
Forbearance agreement and repayment plan
If the reason for which you are unable to make the payment is temporary, you may be eligible for a forbearance agreement. With the forbearance agreement, the lender agrees to reduce the payments or suspend them for a limited amount of time. At the end of the forbearance period, you can pay back the missed or reduced payment in full, through a repayment program or modification.
It is a permanent change in your loan terms. For example, a modification can extend the amount of time you have to pay off the loan or may reduce the interest rate charged. With a loan modification, the service may add any past due amounts into the loan balance. Then, based on your circumstances, you may qualify for a loan modification.
Deed in place of Foreclosure
A deed-in-lieu foreclosure means that you sign your house over to the lender. You may then walk away to avoid foreclosure. As for a short sale, you need to make sure that you will not be held personally liable for the mortgage reminder. You must also check with your lender if they have a “Cash-for-keys” program that can help you pay for the relocation costs.
Call a HUD-approved house counselor
Before signing any agreements, call the Department of Housing and Urban Development (HUD) for their advice. They offer free home counseling to any struggling homeowners. The counselor can discuss your situation and look for government programs that will provide you enough help. They will also assist you with budgeting, managing your credit card debts, and help solve other financial challenges. You can contact or regional HUD office to learn more about it.
Sell houses for Cash
If you still cannot afford to pay your mortgage, another easy option that can move you out of this ugly situation is to sell houses for cash.
If you are wondering “How can I sell my house fast in Corpus Christi?” The Grahambelle Group will be your savior. They are the country’s number 1 home buyer throughout different locations in the US. They can close on your home quickly and guide you on how you can sell your house as-is. No waiting, no extra closing costs, and no fees.
Once you plan to sell your house for cash, Call us and give the basic details of your home, Our experts will go through the home inspection, and will get you the best price for your home, once you are okay with the price, we will close the deal within two weeks.
To know more about “selling houses for cash to the most trusted name in this business, contact The Grahambelle Group today! To check out other houses for sale in Corpus Christi, click here.