Finding a Short Sale Expert in Denver That Can Help You
Foreclosure is a living nightmare. It can happen to anyone, and usually, people who’ve lost their jobs or faced extenuating circumstances that make it difficult to pay their mortgage are at risk of foreclosure.
Now, while there’s not much you can do if your lender decides to take possession of your home since the law sees homeowners as being responsible for paying the mortgage regardless of the personal situation—you can still do your best to avoid foreclosure by minimizing how much you owe on your mortgage in case something does happen.
How to avoid foreclosure
1. Pay your mortgage on time
Paying your mortgage on time is one of the best ways to avoid foreclosure. Your mortgage lender can’t foreclose on you if your mortgage is already paid. If you have difficulties finding money for your monthly payments, consider asking a family member or friend to help you.
The last thing you want is a debt collector calling and informing you that they’ll be taking possession of your home because you haven’t made a payment in three months. Pay your mortgage on time to ensure you aren’t subject to foreclosure.
2. Tell your lender early on if you have problems paying
If you’re having problems paying your mortgage on time, contact your lender and let them know. There are a lot of programs out there intended to help people who’ve been through difficult financial times. Your lender can work with you if you’re facing difficulties paying so they won’t have to foreclose on your home. Some lenders even extend the terms of loan agreements so borrowers can catch up later on their payments. It never hurts to ask.
3. Contact your lender early on if you have difficulties making payments
If you have problems making your monthly payments, it’s best to contact your lender early on. If you let them know that you’re having financial difficulties and ask if they could help by extending your loan, they may help. If they’re already contemplating foreclosure, they may not agree to extend the terms of the payment plan—but at least you tried. Many foreclosures occur when people do nothing about their money problems and sit back, hoping things will improve.
4. Participate in a housing counseling program
If you’ve reached the point where you feel your situation requires counseling, consider participating in a housing counseling program. Housing counselors can help you sort out your financial situation and advise you on how to get out of it. They can also help you work with mortgage lenders and realtors, so they don’t try to foreclose on your home. Consultations with a housing counselor may save your home.
5. Meet with your lender and realtor together
If you’re thinking of leaving your house, it’s best to meet with your lender and realtor so they can make the necessary arrangements. Sometimes, lenders or realtors try to foreclose on homes soon to be sold or rented. This is not uncommon. For this reason, discuss what will happen with the sale of your home with them, as there will likely be some agreement between the two parties. This will help avoid conflict and confusion while selling or renting your house.
Foreclosure in Denver, Colorado can happen to anyone, and it’s best to do everything you can to avoid it. If you follow these tips, you’ll minimize how much you owe on your mortgage so that if foreclosure does happen, there won’t be too big of a sum for the lender.
Foreclosure is a very emotional and frightening experience. However, if you have the correct support system, you’ll have the help needed to escape this difficult situation.