Thinking about losing your home to foreclosure is scary. But what exactly is foreclosure, and how does it work? Foreclosure is the legal procedure that enables a lender to repossess your home after you’ve defaulted on your mortgage. In other words, if you stop making your mortgage payments, your lender can foreclose on your home and force you to sell it to recoup their losses.
Of course, you don’t want this to happen; that’s why you must know how to avoid foreclosure. This blog post will outline 3 things you can do if you’re in danger of foreclosure. Learn more!
Wondering How To Avoid Foreclosure? Try These 3 Methods
1. Forbearance
Suppose you’re experiencing a temporary financial hardship, such as a job loss or medical emergency. In that case, you may be able to qualify for forbearance from your lender. Forbearance means that your lender agrees to suspend your mortgage payments for a set period. Remember that you’ll still owe the fees and interest once the forbearance period ends.
2. Loan Modification
A loan modification permanently changes one or more mortgage agreement terms to make the payments more affordable for the borrower. It could involve extending the length of your loan, lowering your interest rate, or changing the type of loan you have. You’ll likely need to submit documentation of your financial hardship to qualify.
3. Short Sale
When you can’t afford your mortgage payments and are not eligible for the past 2 options, you may be able to sell your home through a short sale. With a short sale, you sell your home for less than what you owe on the mortgage and use the proceeds from the sale to pay off the mortgage balance. A short sale will damage your credit score, so it’s not an ideal solution. But it’s worth considering if you’re at risk of foreclosure.
At OC Home Buyers, We Buy Houses In Orange County Fast!
As you can see, there are things you can do to avoid losing your home to foreclosure. However, these solutions can be hard to qualify for and may not be ideal in the long run. If you want to avoid the hassle of dealing with foreclosure entirely, OC Home Buyers can help. We’re Orange County’s leading home cash buyer, and we’re here to help you sell your home quickly and easily, no matter your situation. Contact us today; we buy houses in Orange County!