Buying a home is the dream of tens of millions of Americans. Hundreds of millions of other Americans are currently servicing their mortgages and live in their own homes. Others have settled their mortgage balances and have taken out home loans for one reason or another. Unfortunately, there are homeowners who are facing foreclosure in Northwest Indiana.
Failing to make your mortgage payments accordingly can have serious consequences. For starters, your bank will initiate foreclosure proceedings. The end result of this process is usually loss of not just your home, but also equity, and damage of your credit rating.
Most employers nowadays run credit checks. They usually avoid job applicants with low ratings as well as those who have had foreclosure or bankruptcy in the past. Lenders also avoid borrowers with poor ratings. As you can see, your life will be changed by the repossession of your house. Therefore, it is important you explore all the available options for stopping the process of foreclosure. The good news is that there are many of them, and some can leave you with a great credit rating and save your equity. All you need to do is consider the pros and cons of the different options.
After your home has been foreclosed on, you will obviously have to look for another place to stay with your family. After all, your home will be gone. In addition to that, your equity will be gone. If you had serviced your mortgage for a decade, you will lose all the equity you might have built in the 10 years you have been servicing the debt. This is a huge loss.
If your property is about to be repossessed by the bank, the best option for stopping the process is short-selling the property. This is the process of selling the house at a lower price than it is worth to settle your mortgage balance. The selling price must be lower than the outstanding balance and the lender must approve the process. As you can see, you will lose both your home and equity through this process, but you will avoid getting adversely listed.
If you have missed a few payments, but you have not yet received the notice of default, you might be able to stop the process easily. All you need to do is put your property on the market. You can sell at the current market value or at a premium to not only recover your equity, but also make a profit. After settling your mortgage balance, you can buy a smaller house that you can afford.
The last option you should consider is declaring bankruptcy. When you have been declared bankruptcy, your mortgage lender will be prevented from repossessing your property. This will give you time to look for funds to make up for missed payments to ensure you are current. This will not only prevent foreclosure, it will also give you a chance to retain your home.
If your monthly mortgage payments have become affordable, you can refinance the loan to improve the terms and conditions. For instance, you can have the repayment period extended to reduce your monthly payments. Reduced monthly installments will boost your chances of successfully servicing your mortgage and avoiding foreclosure.
Failing to make your mortgage payments accordingly can have serious consequences. For starters, your bank will initiate foreclosure proceedings. The end result of this process is usually loss of not just your home, but also equity, and damage of your credit rating.
Most employers nowadays run credit checks. They usually avoid job applicants with low ratings as well as those who have had foreclosure or bankruptcy in the past. Lenders also avoid borrowers with poor ratings. As you can see, your life will be changed by the repossession of your house. Therefore, it is important you explore all the available options for stopping the process of foreclosure. The good news is that there are many of them, and some can leave you with a great credit rating and save your equity. All you need to do is consider the pros and cons of the different options.
After your home has been foreclosed on, you will obviously have to look for another place to stay with your family. After all, your home will be gone. In addition to that, your equity will be gone. If you had serviced your mortgage for a decade, you will lose all the equity you might have built in the 10 years you have been servicing the debt. This is a huge loss.
If your property is about to be repossessed by the bank, the best option for stopping the process is short-selling the property. This is the process of selling the house at a lower price than it is worth to settle your mortgage balance. The selling price must be lower than the outstanding balance and the lender must approve the process. As you can see, you will lose both your home and equity through this process, but you will avoid getting adversely listed.
If you have missed a few payments, but you have not yet received the notice of default, you might be able to stop the process easily. All you need to do is put your property on the market. You can sell at the current market value or at a premium to not only recover your equity, but also make a profit. After settling your mortgage balance, you can buy a smaller house that you can afford.
The last option you should consider is declaring bankruptcy. When you have been declared bankruptcy, your mortgage lender will be prevented from repossessing your property. This will give you time to look for funds to make up for missed payments to ensure you are current. This will not only prevent foreclosure, it will also give you a chance to retain your home.
If your monthly mortgage payments have become affordable, you can refinance the loan to improve the terms and conditions. For instance, you can have the repayment period extended to reduce your monthly payments. Reduced monthly installments will boost your chances of successfully servicing your mortgage and avoiding foreclosure.
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