Losing one’s job or medical emergencies can reduce your income significantly, leaving you with just enough to survive. Many other circumstances can occur that lead to homeowners in Oahu defaulting on their mortgage payment; however, such can happen to anyone. The way you handle it is what matters. Don’t just cross your hand and wait till you lose your home to foreclosure; you can do something to stop foreclosure even if you don’t have enough cash. Consider the following options:

• Sell your home

Selling your home to private investors before it is foreclosed is a significant step to consider. The money gotten can be used to pay off your loan; however, you need to inform your lawyer about this step to prevent unnecessary liabilities later. Also, using this method to stop foreclosure helps you keep your credit score in good shape and makes it easier for you to secure another mortgage loan.

• Short sale

Some homeowners default not because of financial difficulties but because they no longer see a reason to keep paying the loan on their home as it’s value has dropped dramatically. What homeowners do not understand is that your lender can sell your home, and if it does not cover for the mortgage, you can be sued to pay the rest. It’s a dangerous thing to do nothing, and a short sale is one of the ways you can sell your home at a price below the amount you owe and still avoid been sued for the remaining.

• Loan modification

Maybe you don’t want to give up your home but still can’t pay up on the delinquent amount, requesting a loan modification is the best option for you. Once your application is accepted, you will negotiate with your lender on your payment plans and reconstruct another plan. That makes it easier for you to keep up with your mortgage payments and stop foreclosure.

Comments

comments