If you’re underwater on your loan or struggling to keep up with your monthly payments, you may fear that your mortgage provider will foreclose on your home.
Even if you’re able to make your monthly payment, catching up on a past-due balance can be a daunting challenge. However, it’s crucial to remember that moving quickly is absolutely paramount if you want to avoid foreclosure and protect your credit rating.
Thankfully, there are several options to avoid foreclosure in Lehigh Valley and maybe even keep your house.
So let’s dive in on a couple quick tips on possibly how to stop foreclosure in Lehigh Valley with your home.
The Keys of How To Avoid Foreclosure in Lehigh Valley – Don’t Abandon Ship
When faced with financial difficulties and the inability to keep up with mortgage payments, some homeowners may feel like giving up and walking away from their home. Unfortunately, this has led to certain areas of the country becoming ghost towns as the economy has impacted residents significantly.
One prime example of this phenomenon is Detroit, where the effects of home abandonment are still visible today. However, it’s crucial to keep in mind that abandoning your home can have severe consequences.
Foreclosure, in particular, can have a huge negative impact on your credit score and prevent you from being able to purchase a home for years to come. If you decide to sell your home, leaving a portion of the loan unpaid could result in legal action being taken against you by the lender.
While it may be a stressful situation to face, it’s essential to keep your wits about you and consider all of your options carefully. You may be able to work with your lender to negotiate a loan modification or forbearance plan that will allow you to keep your home. Alternatively, selling your home through a short sale or other means may be a better option than simply walking away and facing the consequences of foreclosure.
While it’s extremely stressful, you do have options:
1. Talk to your Bank or Lender
If you’re struggling to keep up with your mortgage payments, it’s important to remember that many lenders offer some level of assistance. While it can be challenging, you may be able to negotiate a reduction in your interest rate or a temporary reduction in your payment amount.
In many cases, lenders will suggest refinancing your loan as a solution. While this can be a great option, it’s important to be aware that it may increase your monthly payment depending on the current interest rates. Additionally, if you’ve fallen behind on your payments, you may not qualify for a reduction in interest rate.
Negotiating with a bank can be a time-consuming and frustrating process. It often requires persistence and patience to navigate through the bureaucracy. It’s crucial to remain polite and professional when speaking with bank representatives, asking for help and explaining your situation while providing supporting documents. Be sure to reassure the bank that you’re committed to living in your home for the long term.
If you need a temporary solution to stay in your home, many banks may be willing to add a few months of payments back onto the primary balance of your loan. Remember, to them, it’s all about dollars and cents, so remind them that working with you will ultimately lead to them receiving more money in the long run. If they foreclose on your home and sell it at an auction, they’ll take a significant loss.
While it may seem obvious, it’s important to remember that banks are more likely to work with you if you approach them respectfully and with a willingness to work together to find a solution.
2. Ask your family, friends, and network
It can be a challenging task to ask for help, but it is crucial to put aside your pride and take action to prevent your home from being foreclosed.
Are there any options available to borrow funds from someone you know, such as a friend, family member, or co-worker? Alternatively, could you sell some of your belongings to raise some money? It might also be worth checking with your employer to see if they offer any hardship loan programs that you could potentially benefit from. Collaborate with your loved ones and trusted friends to brainstorm possible solutions.
By exploring various options, there is a higher likelihood that someone may come up with an effective plan to address your situation.
3. Ask for Help from the Government
The US government has introduced various initiatives to provide support to homeowners experiencing financial difficulties. One such program is the Home Affordable Modification Program (HAMP) that enables struggling homeowners to adjust their loans and reduce monthly payments. Another program called the Home Affordable Refinance Program allows homeowners who are making their mortgage payments on time to refinance an adjustable rate mortgage into a low-interest, fixed-rate loan. It is important to note that both of these programs have specific eligibility requirements.
If you have a mortgage that qualifies, you may be able to participate in the Making Home Affordable (MHA) program. All loans supported by Fannie Mae or Freddie Mac are required to be considered for MHA, while other lenders may choose to participate in MFA. Through MFA, you may be able to lower your payments and/or interest rates, or even reduce the principal balance if your home is worth less than what you owe. If you are unemployed, you may be able to temporarily suspend or reduce your payments. However, since MFA is a government program, expect to deal with a lot of paperwork and work hard to qualify for the assistance provided.
4. File for Bankruptcy
Bankruptcy is generally considered a last resort option for those who are overwhelmed with debt. However, it can be an effective way to negotiate with multiple lenders at once. It’s important to keep in mind that bankruptcy won’t help you avoid mortgage payments.
Each lender has their own approach to such circumstances, so seeking professional assistance from the best available resources is highly recommended to navigate through the complexities of bankruptcy.
Keep in mind that filing for bankruptcy is a complicated process and requires a lot of work.
5. Work with a Trusted, Local Home Buyer
If you’re looking to sell your house quickly, there are many companies in the Lehigh Valley that can help you achieve your goal. However, not all of these companies have your best interests at heart. Some may seek to take advantage of your situation and offer you a deal that’s not in your best interest.
That’s why it’s important to be cautious when selecting a company to work with. You want to find a reputable company that you can trust to treat you fairly and honestly. Look for a company that is transparent and realistic with you about the process and what you can expect.
One good way to vet a company is to read reviews from other sellers who have worked with them. Check out online review sites and see what others have to say about their experiences. You can also ask for references from the company and follow up with those references to get a better idea of what it’s like to work with them.
When you contact a company, ask plenty of questions and be upfront about your situation. A good company will listen to your needs and work with you to find a solution that works for you. They should be willing to explain their process and the options available to you. If a company seems evasive or pushy, it may be a sign that they’re not a good fit for you.
We can Help
Losing your home can be a devastating experience, both financially and emotionally. We understand the stress and uncertainty that comes with the possibility of foreclosure, and we’re here to help.
As a family-owned business based in Allentown, PA, we have worked with numerous homeowners in the Lehigh Valley to find solutions to foreclosure problems.
Foreclosure can have a lasting impact on your credit rating and financial future, but it’s important to know that you have options. Our team is dedicated to helping you navigate through the process and explore every possibility to help you stay in your home. We don’t charge any fees for our services, and we’ll evaluate your situation and present you with your options, so you can make an informed decision and move forward with confidence. We have worked with numerous sellers before and helped them stop foreclosure in Allentown, PA.
At our core, we’re committed to making the Lehigh Valley a better, more prosperous community. We believe that everyone deserves a fair chance at homeownership and financial stability, and we’re here to help you achieve that.
So if you’re facing foreclosure, don’t wait. Contact us today and let us work together to find a solution that works for you.