Do you need help settling your mortgage and other bills? Well, you’re not alone. It has been said that approximately 3% of mortgages are in default. That’s one in every 27 borrowers. And that’s why today We Buy Fast Houston Houses thought we should talk about ways we can prevent foreclosure in Texas.
If you’re a sensible homeowners in Houston, Texas, you should know burying your head in the sand and hoping the problem will resolve itself is not a smart move. The first thing that you ought to do is reach out to your mortgage lender, so as to figure things out. The lender’s contact can be found on your coupon book or mortgage statement. Call them and schedule an appointment. At the meeting, explain to them why you don’t think you’ll be able to make the next payment and whether your situation is a temporary or permanent one. Don’t show up empty handed. Show up with records or receipts that show your household expenses, income, and savings. And with that being said, here are some of the ways you can avoid foreclosure in Houston, Texas:
Mortgage loan modification
Will you be able to pay the mortgage if the lender reduced it? Then ask if they can be open to the idea of modifying the terms of your loan. However, there’s a downside to this. And it’s the fact that you’ll be forced to pay the loan over a longer duration of time. So if it was a ten-year loan, and the monthly payments are halved, you could have 5 extra years added. Which also means you’ll pay more than you’re supposed to, considering they have to factor in the interest rates.
Repayment plan
There also the option of restructuring the payment schedule. The restructure will give you more time to sort out your personal issues and be caught up in due course. But that doesn’t mean that it will reduce the amount you owe. Therefore, before you make a decision, be sure you’ll be comfortable paying more until you become current.
Forbearance
Under this contract, you’ll be given an opportunity to skip a couple of months or temporarily make lower payments for a for an agreed upon period of time. But this is the kind of option that’s given to those who are going through temporary hardships. For example natural disasters, loss of job, divorce, illness, etc.
Short sale
A ‘short sale’ is exactly what the name suggests. You sell my house fast but for less its value, or the amount you owe the bank as mortgage. Once the sale is done, the lender still has an option of enforcing your obligation under the loan for the balance. But that depends on the terms if the mortgage and the laws of the state in which you reside.
Sell for cash
You can simply sell quickly to We Buy Fast Houston Houses and move on from that whole situation. What’s the point of holding on to a house, trying to save the memories, when you’re on the verge of losing it for nothing. Take the cash, pay your mortgage and life will be less stressful.
Comments