Most homeowners are responsible and take their mortgage payment very seriously; however, unexpected circumstances occur from time to time, making it difficult to catch up. It could be medical emergencies, job loss, divorce, etc. Whatever it is, if you do not take action on time, you can lose your home to foreclosure. Foreclosure is the process your lender uses to gain their money back. Its effect on your credit score can make it difficult to secure another mortgage in years. So apart from saying your home, that is another reason why you should try your best to stop foreclosure.

There are many options to try out, but state laws differ and can determine which option you can or can’t use. Research the laws guiding foreclosure in your state and how it is processed. You will save yourself a lot of stress and time by doing this, and you should also discuss with a foreclosure lawyer before taking any step. In Houston, you can consider some loss mitigation options to stop foreclosure. Let’s consider two of the common ones:

Refinancing

Taking another loan or mortgage to pay off your current mortgage in full with the addition of late fee charges is known as refinancing. Lenders in Houston offers this option to homeowners who are having trouble paying their mortgage. However, there are several factors lenders consider before granting a new mortgage. One such factor is whether you have a stable income; your lender must be assured that you will regularly make payment.

Loan modification

There are so many benefits you can derive from a loan modification. Apart from helping you stop foreclosure, it will make it easier for you to keep up with the mortgage payment. A loan modification is simply the process of reviewing your loan agreement and negotiating with your lender on a more manageable plan. You can extend your loan life, reduce the monthly payment, reduce the interest rate, and other variations depending on your financial situation.

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