If you have been defaulting on mortgage payments, probably, you are already thinking of letting the bank foreclose your property. Losing the house is a sad chapter of your life; it is a nasty one. But, you don't have to succumb to the negative circumstances. You can either choose to retain the house using possible alternatives or disposing your house to transfer to another one.
Before deciding on the matter of foreclosure due to mortgage loans or such, it is recommended to ask a foreclosure lawyer of your options to retain the house. Here are some of the options you have to avoid foreclosure of the house and still keep the property:
- Repayment Plan Schedule. There are several reasons why you defaulted on paying your loans, but you can always negotiate with your lender to create a new repayment plan schedule. Depending on how things turn out with your lender, you may repay the loan in a new term with the aim of covering the defaulted payments.
- Forbearance. In this alternative, you are praying for the forgiveness of the lender on your failure to make timely payments. Forbearance allows you to suspend payment for a limited period of time, until you can recover from the financial crisis, but with the intent of resuming the payment schedule when things are good. Of course, the borrower is always up to the mercy of the lender; a good negotiation will do.
- Mortgage Modification or Refinance. Refinancing the loan is a good option to explore. Of course, you need to renew or revise the terms of the loan. By extending the mortgage loan, you will be able to buy time. You can use equities of your house to pay defaulted payments and start anew.
- Payment Assistance. There are charitable organizations that offer financial assistance to individuals who have problems with their mortgage loans. You can also tap state or federal government financial aids to help you in making a direct payment for your mortgage loan.
However, if you wish to dispose the house and you want to transfer to a new apartment or a new house, you may do the following:
- Sell the House. You can ask a foreclosure lawyer on the amount you can get with the property, including equities. With the advice of your foreclosure lawyer, you can compare how much you can get on selling the house over the mortgage loan.
- Assumption. Do you have a friend or relative moving to the area? You can ask them to take possession of the property. A lawyer can help transfer deeds of the property to another person. This way, the mortgage loan will be transferred to the new owner.
- Deed in Lieu of Foreclosure. Another option you can explore is just giving the deeds of the property to the lender to forfeit the loan.
Disposing the property can keep your credit rating in good shape, and you will be able to regain back your financial freedom.
