No one has the intention of signing a mortgage then plan on how to part with it. Let us face it, though, life happens; we can never be too sure of whatever lies ahead. Even the borrower with the best intention in mind, can one day be faced with every homeowner’s nightmare: a foreclosure.
Sometimes, many unanticipated events happen that may overwhelm you, like massive amounts put on medical bills or termination of work that make you fall behind on mortgage payments. Who would want to understand such reasons?
To be able to call it your home, you need to pay the mortgage to your bank or lender because, technically, it’s not your home yet; it’s yours and the bank. Definitely what you need to learn right now are the various ways you could avoid foreclosure in Houston or wherever you are. If you miss out on making mortgage payments, here are options you could choose from to avoid foreclosure.
Negotiate a Repayment Plan
You could always create a repayment plan with your lender to work on how to catch-up on the missed payments and keep them current. To make this approach easier, negotiable and possible, you need to have an income that will be able to pay the makeup and current payments without any inconvenience. These will ease your payment while at the same time help you get back on track to avoid foreclosure in Houston.
Take a Break from Payment; the Forbearance Agreement
With this agreement, your lender will accept to suspend your payments or for a certain period provided you agree to make the full payment, inclusive of an extra amount to compensate the missed payments, come to the end of this period.
Mortgage Modification: Make Lower Payments
The bank may modify your loan to reduce payments by lowering your loan’s interest rate, make an extension period from say 20 years to 30 years. This has the impact of reducing your monthly pay or even re-amortize your loan; adding your missed payments to the balance then giving out a new loan with a new interest rate and new period.
Other Available Options
Aside from these, a variety of options exist like selling your home at a lower price, filing for bankruptcy (though not an appealing option) or selling it back to the bank. Imagine all the legal fees you will avoid when you avoid foreclosure in Houston. All in all, if you need additional guidance on how to stop the foreclosure process, contact houstonhousebuyers.com for assistance.