Just because you have gotten the house of your dreams does not mean you are free from the threat of foreclosure – especially if you're home entails hefty mortgage payments.
If you are a homeowner who is struggling to keep up with their mortgage payments, you need to start taking proactive measures to save your house from foreclosure. As long as you act quickly, there is a high chance your lender will let you keep the house. So here are a few options you can use when you feel a foreclosure on the horizon.
Reinstate Loan
This is for when you have enough cash on hand, which gives you the opportunity to reinstate your loan by making up for all of your missed payments. The state law allows homeowners specific time periods to reinstate their loans.
However, in some cases, state laws do not allow that, but many mortgages and deeds of trust can provide this right as a part of the agreement. Moreover, lenders are not too fond of pushing ahead with the foreclosure and would instead prefer to work something out with you.
Repayment Plans
In case you are not too far behind in your payments, you can always qualify for a repayment plan. This way, you can arrange to make up for your missed payments over time and keep up with your current expenses.
For this plan to work, you need to make sure that your income will cover up both your overdue and ongoing amounts. Plus, depending on your situation, these repayment plans can last for six to nine months.
Refinance
If you have the opportunity to refinance at a better rate and can pay off all of your past loans, you can then start afresh. Every state gives you the right to recover your mortgage through financing until the foreclosure time sale.
Forbearance
Another thing you can do is to enter a forbearance agreement. This is when the lender permits you to make fewer mortgage payments or even no payments at all for a certain amount of time.
You can qualify for this agreement if you are currently having trouble making up for your payments but can convince your lender that you can pay them back at a later date. At the end of the forbearing time period, you will have to continue paying the regular amount alongside the additional charges to pay down for your missed payments.
There are also several other methods you can approach, many of which are shared by the revered real estate investor Lloyd Segal.
Aside from being an investor, Segal is also an author, a mentor, and a national public speaker who also serves the position of President of the Los Angeles Real Estate Investors Club – also known for being one of the oldest and largest investor groups in California.
The club focuses on providing its members with education, mentoring, and networking, which is supervised by Segal himself, including all the activities and committees that take place. Additionally, after spending years in the real estate industry and writing books on distressed properties, Segal has been in much demand as a guest speaker at many industry events and real estate investors groups worldwide.
He has also used his experience to buy distressed properties worth millions of dollars which he rehabs and then either sell them or puts them up for rent. Hence, his efficient techniques have made him one of the best investors in the industry that many aspiring real estate investors look up to.
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