Know Your Options To Avoid Foreclosure In Austin
Perhaps you have fallen behind on your mortgage payments. And now, your lender is breathing hot on your neck, threatening foreclosure. Do not hit that panic button yet. Just relax since you haven’t yet lost your property. It is important to know your options to avoid foreclosure in Austin.
There are various steps you may take when you want to stall or even prevent your property from being foreclosed. The following are just some of them.
- Refinancing Your Mortgage
Refinancing your mortgage is an ideal means of paying off your debts while at the same time keeping intact your credit. If you happen to have fallen behind on your mortgage and you possess meaningful equity, one step you can take is appealing to your lender. They can be compelled to add back payments to your loan’s remaining balance, and agree to longer amortization period.
- Appeal for Forbearance
Forbearance is a binding agreement between you and your lender. It is going to stall your payments to enable your finances to recover. The catch is that over time, you will have to pay back your negative balances. You will need to prove to your lender that your lack of payments comes from financial difficulties. This could be brought about by such unfortunate factors like a lost job or an illness. You must show your lender that sooner or later you will be able to overcome these difficulties. Often the lender will acquiesce to forbearance instead of channeling the issue into a legal tussle.
- Short Sell Your House
When your lender is adamant about renegotiating your mortgage, and you are faced with imminent foreclosure, still you may save your credit rating through short-selling your property. A short sale normally involve listing your property on the market for lesser amount than you owe your lender, in exchange for forgiveness of your debt. While this implies that eventually you are bound to lose your property, the advantage is that you will be clear of the debt and you are not going to be stuck with a foreclosure as far as your financial records are concerned.
- Declare Bankruptcy
Sometimes desperate situations call for desperate measures. Therefore, when this looks like an extreme step you have to make to avoid foreclosure, so be it. But when you are looking for a means to stall for some period till you find ways to wriggle out of your financial mess, filing for bankruptcy is going to freeze your debts to the lender, and it will also prevent them from foreclosing your property till a judge has reviewed the case. This normally takes months to do. Though declaring bankruptcy is just a temporary solution, in the nick of time it may offer you a roof over your head till you are able to find a new home.
Summary
Having to lose your property is an unfortunate mess which is not easy for anybody to recover from. When you happen to have fallen behind on mortgage payments, you should immediately contact your lender to appeal for a means of repayment which will not involve losing your property. When the debts are so much that they cannot refinance your loan, do not hesitate to employ every available means. It is important to know your options to avoid foreclosure in Austin
We Can Help
Reimagine Realty Solutions is the leading real estate investing company in Austin. Nobody who purchases a home has intention of missing mortgage payments, though unexpected life circumstances may stymie quickly your best intentions. We are able to help you know your options to avoid foreclosure in Austin. Often we are able to buy your house for cash in less than 10 days. Call us for a free consultation at (512) 575-2222.