Every single day, there are numerous individuals who find themselves in the challenging situation of struggling to keep up with their mortgage payments.
It can be a daunting and overwhelming experience, but fear not! Our latest article is here to provide you with invaluable advice on how to prevent foreclosure of your beloved New York home.
We have carefully curated a range of proven strategies and techniques that can help you navigate through this difficult phase, ensuring that you can save your cherished property from falling into the clutches of the bank.
Whether it’s exploring loan modification options, understanding forbearance programs, or discovering alternative payment plans, our comprehensive guide has got you covered every step of the way.
Don’t let the stress of potential foreclosure weigh you down – empower yourself with the knowledge and tools needed to protect your home and secure a brighter future.
Foreclosure can be a difficult and frustrating process.
Not only will you lose your house, but you will also lose your pride. It can be difficult for anyone to handle. But what you need to know is that it happens to people all the time. You are not the first person going through it, and you certainly won’t be the last. The good news is, that if you are still in possession of your house, there are some things you can do to stop the banks. But first…
Why Do Banks Foreclose?
Banks may initiate foreclosure proceedings when multiple payments are missed, affecting even the most responsible individuals due to various circumstances. Factors such as divorce, job loss, the loss of a loved one, welcoming a new family member, or sudden illness commonly contribute to missed payments.
It is important to understand that homeowners in such situations face immense challenges, and losing their home compounds their already difficult circumstances. When borrowers are unable to fulfill their financial obligations, the bank regrettably resorts to foreclosure, selling the property at auction in an attempt to recover their funds.
What You Can Do To Stop It
Find A Buyer… Quickly
When you sell your house in New York, the foreclosure process will stop in its tracks. You can try to find a buyer who can close quickly on your own, or you can our company, we will always pay you a fair and honest price for your New York house.
If you sell on your own, to a buyer using financing, the sale could end up taking weeks or months to be finalized, and by then, the bank may have already foreclosed. With a direct sale to Sell Now Homebuyers, you will typically be able to sell your house in only a few short days.
Short Sale
If you find yourself in a situation where you own a home that’s worth less than what you owe, there is a potential solution for you. This solution comes in the form of a short sale, which occurs when the homeowner and the bank reach an agreement to sell the house for less than its outstanding balance.
Short sales typically arise when the value of the property has decreased, making it difficult for homeowners to keep up with their mortgage payments. By opting for a short sale, the bank aims to recover a significant portion of the owed amount, rather than undergoing the extensive and time-consuming foreclosure process.
One important advantage of a short sale is that it tends to have a less detrimental impact on your credit compared to a foreclosure.
Work Out A Deal
When you first realize you are having difficulties making your mortgage payment, it is recommended that you reach out to your bank as a first step. Banks prefer to work with borrowers rather than dealing with missed payments and the consequences of foreclosure.
Consider looking into options such as a loan modification, which involves changing the terms of your loan to make it more manageable.
Additionally, exploring the possibility of refinancing your mortgage could potentially lead to a reduction in your monthly payments.
By taking proactive measures and exploring these alternatives, you can navigate through financial challenges while working towards a more feasible solution.
If you have missed a few payments, try to set up a payment plan to get back on track. Some lenders will agree to forbearance, forgiving the missed payment and adding it on to the end of your loan term. Before you do anything drastic, talk to the bank first. They are used to dealing with these situations and will likely have a solution to help you.
File For Bankruptcy
If you file for bankruptcy, the lenders cannot attempt to collect payment until the court allows it. Make sure you choose the right type for your needs, Chapter 7 or Chapter 13, and that you have talked this through with an attorney.
The act of filing for bankruptcy can have long-lasting and detrimental impacts on both your personal finances and credit rating in the years to come.