So you have found a house that you really liked and worked for many years to pay your mortgage knowing how valuable such an investment can be. You may have made payments on your home for many years and have built up a lot equity. Of course you never imagined it would come to this and you certainly don’t want to lose the house and all the equity you’ve worked for to foreclosure.
Perhaps you are current on your mortgage payments and aren’t facing any serious financial problems or maybe you’re months behind on your loan and mere weeks away from foreclosure. In any case, you should take any steps necessary to ensure that your house will not be lost in a foreclosure. If you want to avoid foreclosure in Houston, you should try your best to keep your mortgage on track and do everything in your power to prevent it from being auctioned off if the bank starts foreclosure proceedings. Don’t procrastinate or put off taking care of the problem if you’re facing foreclosure as time is often a very important factor in these situations.
1. If you’re going to be late on your mortgage payments…
1.1 Analyze your finances.
You can start with looking over your finances and getting a basic idea of how serious your situation is. Find out how much money you can rake together now (if any) and figure out how long it will take to get the rest. The earlier you resolve this problem the better so don’t wait until you’re behind on a payment or two before you start looking into it. After you’ve figured out what state your finances are in, you can start looking for a way to recover.
1.2 Inform your lender.
Staying in touch with your lender when you’re going to be (or already are) late on your payments will make them realize you’re serious about keeping the house. In most cases, lenders don’t want to foreclose on one of their houses because it will cost them time and money. If you can convince them that you are trying to get your mortgage back on track, it will make them more likely to cut you some slack.
1.3 Discuss solutions with your lender
After you’ve explained you situation to your lender, you can start discussing your different loan options with them. They may let you hold off on your payments for awhile until you get back on your feet. You can also ask them what programs they have for homeowners who are having trouble keeping up with payments. If you show that you’re making an effort, you may find that your lender is willing to compromise if it means they will continue receiving your monthly payments.
1.4 Get the money to make your monthly payments.
After you’ve bought some time by working with your lender, you need to find a way to come through with your promises to catch up on your mortgage. Your house is probably one of your most valuable assets so if you’re left with no other choice, don’t hesitate to sell your vehicle or other valuables to save your mortgage. If you have enough time, you could even get an additional job until your finances are more stable. You can also get the money by taking out a personal loan however; you should only do so if you’re positive you will have considerably more money in the near future. You don’t want to make your financial situation worse or unnecessarily complicate it.
2. If you’ve missed quite a few payments, you should already be considering the following…
2.1 Loan modification.
Any changes that can be made to your loan will depend on your lender and his willingness to work with you so make sure your on good terms with them. Contact them as soon as possible and ask them how you can modify your loan so you can avoid losing the house. They may suggest extending the length of your loan so you have a higher interest rate but more affordable monthly payments. Another thing they might be willing to do is work out a payment plan for you to catch up on any missed payments while keeping up with your current ones. You can also ask about refinancing your home if you want to cash in your equity and start over.
2.2 Signing ownership over to your lender.
Although there are many downsides to surrendering ownership to your lender, it might be the only way for avoiding foreclosure if everything else fails. The legal name for this is a “deed in lieu of foreclosure”. Be warned that you will lose all of your equity if you give it your lender. This should only be considered if the auction date is near, you can’t find a buyer, and there is absolutely nothing else you can do.
2.3 Selling your house.
Avoiding foreclosure in Houston by selling is a popular choice among local homeowners. That’s because it’s relatively easy, hassle-free, and will not damage your credit in any way. Homeowners that sell can get back all of the money they’ve put into the house, pay off their lenders, and pocket whatever is left.
There are a number of ways that a house can be sold. You can hire a realtor to sell the house for you as long as you trust them and don’t mind paying them a commission and any other fees they might charge. Some people don’t want to pay a realtor and instead choose to sell their house on their own. They put a “For Sale By Owner” sign in their front lawn with their phone number and wait for investors to call with an offer. Others try to sell their house through the property market. However, finding a buyer who is willing to pay market price for your home takes time. If you’re facing foreclosure then you probably don’t have a lot of time to spare and need to find a buyer right away. It would be a shame to lose your house just because you were waiting for someone to pay you an extra few thousand dollars.
You can avoid foreclosure in Houston by selling your home to us. We can purchase your house for a decent price and won’t waste any time in getting it closed on and out of foreclosure’s grasp. We are used to buying all kinds of houses so don’t worry if your home isn’t in perfect condition. The important thing is that the house is closed on immediately and you get off the hook of foreclosure. Send us your property details and contact information so we can make you an offer and (if you are satisfied with it) start the closing process right away.