Here’s how to avoid foreclosure when your forbearance ends.
How can you avoid foreclosure when your forbearance ends? This is a tough question, but I don’t want to avoid answering it in case you or someone you know feels impending foreclosure weighing on their necks.
Even if you don’t bear this burden, you should care that people are going through foreclosures in one of the greatest markets of our lifetimes. To me, it’s such a waste of time, money, and resources. This sort of situation will break one’s credit score; though people can eventually recover from this, it’s very hard to do. That’s not to mention the emotional damage of being foreclosed upon.
Fortunately, it’s very easy to avoid being foreclosed upon these days. In this great market, you have options. We can, at the very least, do what’s called a deed in lieu of foreclosure, which will hit your credit the same but will certainly be less stressful. You could, of course, hire an attorney and fight, and in the end, file for bankruptcy; but that’s just not a good idea. The banks always win.
Alternatively, you could sell your home as a short sale, where you sell it with a negotiated payout approved by your lender. We’ve recently had some great success with short sales. Otherwise, you can simply sell your home at market value. If you’re concerned that your home isn’t worth what you owe, I’ve had success at getting penalties, fees, late charges, and interest waived by the mortgage lender when we could sell it properly and make the case for them. This option sits somewhere in between a short sale and a regular sale.
Fear, uncertainty, and doubt can be crippling, and I’ve seen this leak into other financial, health, and personal decisions. So if you feel this circumstance could be in your future, I encourage you to act, because mortgage forbearances can’t last forever.
If you have any questions about forbearance, foreclosure, or what options you have in this market to circumvent financial disaster based on the aforementioned, don’t hesitate to reach out to me via phone or email. I’d love to help you.