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12 Ways to Stop Foreclosure on Your Home
What is Foreclosure?
Foreclosure is a legal procedure that comes into play when a homeowner fails to pay their mortgage, leaving the lender at liberty to dispossess the homeowner and sell the property as per the contract.
Many might think we have come a long way from The Great Recession of 2008 Housing Crash but things aren’t as rosy as they may seem.
Approximately 47,000 U.S. properties had foreclosure filings in March 2020 as pointed out by ATTOM Data Solutions. Yes, that’s right! 47,000 foreclosures.
Imagine being unable to pay your mortgage payment on your home and the lender taking your beloved house back from you. The stress and pain that follows are unbearable. The uncertainty of where you and your family where live and what comes next, not to mention the toll it will take on your credit score. Lower credit scores will make it more difficult to rent a new home or apartment when searching for a new place to live. You sure don’t want to be in such a position do you? Then, it’s imperative you learn about the effective ways to stop foreclosure.
The following are 12 ways to avoid foreclosure on your Home
Forbearance eases off the mortgage liability on you for a short period of time with the authorization of the lender.
- Repayment Plan
A repayment plan splits your due payments into monthly installments in addition to your actual mortgage payment. The two payments combined equal your new monthly payment until the past due amount is paid in full. This technique helps you get back on track and avoid foreclosure.
- Loan Modification
Loan modification entirely restructures your mortgage. It provides you with a more feasible and affordable payment plan by modifying the terms of loan permanently.
- FHA Loan
FHA loan helps you refinance your payments. It is an interest-free loan that you can acquire from HUD and only is to be paid after your first mortgage is paid off.
In case of being behind in monthly payments, refinancing can help you bring monthly payments down to an affordable level and avoid foreclosure.
- Short Refinance
In short refinance, the bank agrees on a short pay off of your existing mortgage and lends you a new loan with an abridged balance, assisting you to avoid foreclosure.
- Temporary Restraining Order (TRO)
You can get a temporary restraining order from the court to stop foreclosure. This order can buy you a few weeks to pay your dues off.
Taking the plea of bankruptcy can stop foreclosure for an indefinite period. It is the easiest way to delay foreclosure and own the property for further time.
- Sell off Assets
If you own an asset that can pay off your due payments, sell that asset right away. This would let you avoid foreclosure and to keep hold of the house.
If everything else fails, you can hand the property deed back to the lender and be free of the liability. You can utilize this option to prevent foreclosure.
- Short Sale
A short sale means selling the property less than it is worth. The lender can get back its money, however, a bit less, without having to go through a foreclosure.
- Pay off the Balance
This technique is the simplest, i.e., just pay off your remaining loan due.
Avoiding foreclosure is not as challenging as it may seem. While anyone can land in the troublesome situation of foreclosing, one can prevent it with the right guidance and prompt action. Here at RESCO we help Homeowners get out of bad situations all the time. After all we don’t call ourselves Real Estate Solutions Company for nothing. RESCO is here to help you get out of any situation and on with your life by taking these stresses of your shoulders.
Trends in the United States of America
Foreclosures : The unpleasant and
Ugly side of Real Estate.
trends in the US have been fluctuating since the financial crisis of 2007-09.
Foreclosure happens when a Homeowner defaults in on their monthly mortgage
payments, which allows a lender the liberty to evict the owner and take over
control of the property.
As per the latest reports, currently, 270,552
properties in the US are at some point of foreclosure, i.e. currently in
default on their loan, set for auction or result in becoming bank-owned if they
don’t sell at auction. Moreover, 730,053 houses have been put on sale on
see how foreclosure rates fared over recent years and try to get a handle on
what the future holds for the foreclosure markets.
How many Foreclosures Happen Each
Year in the US?
foreclosure activity in the US reached its peak in 2010 in the aftermath of the
great recession when the foreclosure rate touched 2.23%. Since then, the rate
has been steadily declining and relatively stable. Although at a low pace, the
ratio again began to inch up starting in 2013.
to the latest report by “ATTOM Data Solutions”, America’s premier property data
provider, only 8,892 foreclosures were filed in July 2020, which is four per
cent less than June filings and 83% lower than July 2019 filings.
studying the foreclosure trends from 2005-2019, it is evident that except from
2007-10 foreclosure filings have been relatively steady and under control.
year’s 2008, 2009, and 2010 had the highest filing rate with 1.84%, 2.21% and
What Does the Future of Foreclosures in America Hold for Homeowners?
Due to the coronavirus pandemic (COVID-19) the foreclosure market has been put on a temporary hold resulting in a lower number of foreclosures. However, the industry analysts are afraid that after this long period of reduction and once the moratorium periods lapse, foreclosures in America will grow greatly in the subsequent years.
The main reason submitted for such rapid rise is greater unemployment rates and financial instabilities due to the global pandemic of COVID-19.
According to the Wall Street Journal, the unemployment rates have triggered to approximately 5% than the previous years amidst the pandemic.
These worrisome factors precede difficulties in keeping up with the monthly mortgage payments by house owners, ultimately leading to a massive uprise in foreclosure rates.
How can I prevent a Bank Foreclosing on my property if I am behind on my Mortgage payments?
Many Americans are concerned about losing their Jobs, their cars and even their House due to the contracting global economy caused by the Corona Virus. If you are one such homeowner who is facing difficulties and have fallen behind on your mortgage payments do not fear. There are several companies that are specifically dedicated and able to help in these difficult times we are all facing. Help is just one call away. For more information and a free consultation with a specialist who can advise of what options are available to you fill out the form below and we will be more than happy to call you and give you some information and options.
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