By Sandra Kilgore, GRI, ABR, SFR –
If there is one thing in life that we all share, it’s uncertainty.
An unexpected illness, job loss, or an unforeseen financial expense could leave anyone insolvent.
Here are a few options that may help you prevent foreclosure and keep your home.
Ask your lender for a forbearance agreement. If granted, the bank allows you a certain period of time to get back on track. However, when the forbearance period is up, your regular payments are due plus an extra amount to catch up the past due balance.
Another possibility is to rent the home. Rental income could give you the necessary cash to to pay off delinquent fees. Refinancing is a good option if you have sufficient equity in your home and your credit is acceptable.
Loan modifications are a possibility; however they can be very challenging to obtain due to the bank’s stringent underwriting. A short sale will work well if you owe more than the home is worth, and you are in need of a fresh start. Most short sale sellers are able to purchase another home two years following a successful sale.
Reinstatement allows the homeowner to come up with the balance due up until the final foreclosure sale is executed. If all else fails, filing for bankruptcy can buy you time in some states. Be advised, however, this should only be used as a last resort. Doing so may bring on additional problems down the road.
Sandra Kilgore GRI, ABR, SFR