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Potential Options During a Foreclosure

Potential Options During a Foreclosure

For Sale SignGoing through a foreclosure can be difficult. Not only are you losing your home, you will have to find a new place to live, with less than ideal credit. You may struggle for several years until you are able to get yourself back on track.

Because a foreclosure changes your life, you may want to talk to your mortgage company first. There are times when they will work with you through this process, instead of taking your home. You may wonder why they would do that but foreclosing on a home can be quite costly for a mortgage company. Some say that it can cost up to eighty thousand dollars to foreclose on a home.

So, what should you talk to your mortgage company about? Here are some potential options.

They may modify your loan so that you can afford your mortgage. Your mortgage company can change the terms of your mortgage. They may change your interest rate or the length of your loan so that your monthly payments are more affordable. Though it is not always in their best interest, it costs less than a foreclosure.

There are times when your mortgage will keep your interest rate the same. With adjustable interest rates, many people struggle to pay their mortgage as the rates continue to increase. By maintaining a regular interest rate, you might be able to afford to pay your mortgage, without worrying about an increase.

If a person doesn't want to stay in their home, the mortgage company may give them several options. They may allow them to sell their home for whatever they can get (even if it is less than it is worth). Rather than continue the foreclosure proceedings, they can forgive the rest of the balance. They may also let the owner give their home to someone else and have them take over the mortgage so that they won't have to foreclosure on the home.

Though you may be panicking when you get a foreclosure notice, it is not the end of the world. Lucky for you, mortgage companies don't want to foreclose on your home and they may work with you so that you can stay at home. If you don't want to stay in your home, talk to them anyway. You may be able to transfer your home to someone else so your credit doesn't suffer.

Contact us for all of your legal needs. We will help you through this difficult period so that you can get on with your life.