If you find yourself in a situation where you just can’t pay your home mortgage, you have several options, some that may help save your home.
Don’t be denial. Act quickly so you can get a handle on the problem and find a solution.
First of all, call your mortgage servicer, the company that you pay your loan payments to. You can most often find this information on correspondence or on your payment book. They want to help you. The mortgage servicer would much rather see the loan stay with them than to see your home go into foreclosure. They will want to know why you are unable to pay and if the problem is temporary or permanent. They may offer you mortgage assistance or another program they have available to avoid foreclosure.
Sometimes you can refinance, get a loan modification, work out a repayment plan, get a forbearance or SHORT SELL your home or give your home back to the lender through a “deed in lieu of foreclosure.
If you don’t wait too long, a REALTOR © can help you by placing your home on the market and working with your mortgage servicer to short sell your home. This means that you may be able to sell your home for less than is owed on your current property. You won’t get any cash, but you will not go into foreclosure.
If you have an FHA loan, call a HUD-approved housing counselor. Through the Department of Housing and Urban Development (HUD), you can find a housing counselor to help guide you through the process.
You may qualify for the HARDEST HIT FUND. The federal government created the Hardest Hit Fund (HHF) to help homeowners in states that have been affected the most by recent housing and economic downturns. The HHF includes multiple programs developed for homeowners faced with different types of financial hardship. Hardest Hit Alabama. It is worth investigating. http://www.hardesthitalabama.com/programs.aspx
Filing for bankruptcy is a last resort for any individual or family. This status legally means that you are claiming to be unable to pay your current debts. In a Chapter 13 Bankruptcy, individuals have an opportunity to repay their debts under longer-term repayment plans and may be able to keep the home. You will need an attorney to file for bankruptcy.
Watch out for Scams Don’t pay anyone to help you avoid foreclosure. The help you need is available at no cost to you from your servicer. Foreclosure scammers might tell you they’ll save your home from foreclosure when they’re really just taking your money.
Watch for these scam warning signs: Don’t pay upfront for help. Companies can’t guarantee it will get your mortgage up to date nor can they get the terms of your mortgage changed. DO NOT sign over title to your home or any other documents you don’t understand.
If you are facing the problem of losing your home, call your real estate professional at Azalea Real Estate Agency at 251-865-4266. REALTORS© are not credit counselors, but they do have experience in real estate problems and can help guide you in the right direction to help resolve your mortgage situation.