6 Tips To Avoid Foreclosure:
1. Talk to Your Lender: Your lender may agree to wait before taking legal action against you and allow you a forbearance period.
2. Repayment Plan: Your lender may allow you to spread out missed payments over a longer term, such as increasing monthly payments.
3. Change Terms of Loan: If your mortgage is an adjustable loan, your lender could freeze the interest rate before it changes. They could also extend the amortization period.
4. Add the Back Payments to Your Loan: If you meet the lender’s lending guidelines, they might increase your loan balance to include the back payments and re-amortize the loan. This is called a refinance.
5. Partial Claim: Particular government loans have provisions that let borrowers (who meet the criteria) apply for another loan, to then pay back the missed payments.
6. Sell to an Investor: Most investors have cash on hand to buy houses quickly. If you find yourself in a situation where you cannot make up missed payments but don’t want to go into foreclosure selling to an investor could be an option for you. Certain Investors might even lease the house back to you so you don’t have to go anywhere.