Here’s How You Can Save Your Home From a Foreclosure

If you have been falling behind on your mortgage payments and are worried about losing your home, do not worry. It may still be possible for you to save your home from foreclosure. Here are some tips to help you.


1. Call your lender or mortgage company

Be honest to your lender and inform them of your current situation. Let them know that you are having financial difficulties that may affect your ability to make your mortgage payments. You may also ask them about any loss mitigation options that may be available to you. 

Remember to keep notes of the new payment arrangement you make with your lending company, the name of the person you talked to, and the terms you discussed. And do your best to fulfill the requirements of the new payment agreement.


2. Ask for a loan modification.

A loan modification looks like a new mortgage with a different amount and interest rate. Sometimes, you can even get a lower interest rate or reduced payments. However, evaluate the companies that reach out to you with a promise of helping you avoid foreclosure through a consolidation loan. Some companies might give you even higher rates, which you do not want.


3. Look into refinancing.

In refinancing, you take out a new loan which will be used to pay off your existing mortgage. This may not be easy to get, however, especially if your credit is not perfect.


4. File for bankruptcy.

There are two types of bankruptcy you can file. The first is Chapter 7 bankruptcy. This is applicable if you are planning to stay in your home while you are clearing your debts on the property. The other type of bankruptcy is Chapter 13. This will immediately stop mortgage foreclosure. This applies if you are interested in permanently retaining the ownership of the property. This will give you the chance to file a plan to get up to five years to catch up on your delinquency.


5. Put your house up for a short sale.

In a short sale, the proceeds of the sale may not fully settle the outstanding mortgage balance. In this process, the lender accepts a payoff that is discounted to fully settle the loan. You may not get the full amount of your home’s value, but a short sale can help your credit and allows you to avoid a foreclosure. Read more about the details of this process in our previous blog ‘What is a Short Sale?”

There are many options available to you when you are facing foreclosure. However, not all of these options are guaranteed and some (like filing for bankruptcy) even have additional requirements.


At We Buy Any House Fast, we can provide you with a prompt deal and pay you cash for your home with no fees. We understand how stressful it can be when foreclosure is looming, so we are here to provide instant relief. If you are ready to sell your home for cash, talk to one of our expert real estate professionals at 1-800-976-SOLD or fill out the form here to get started!