How to Respond to Threats of Foreclosure

27 Apr

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Your home is a symbol of security. However, if you have purchased one of the homes for sale in South Bay area, it is your bank (or other lender) that actually owns the deed until you have repaid your loan in full. If you are unable to make your mortgage payments, the bank is allowed to foreclose and take possession of your house.

There are currently over 1,000,000 U.S. homes in foreclosure, according to the U.S. Real Estate Statistics & Foreclosure Summary by RealtyTrac. If you are threatened with foreclosure it is important to understand your options.

Negotiating with the Lender

The foreclosure process can take up to a year, depending on where you live. If you are in one of 22 “judicial foreclosure” states, the foreclosure must go through the court system. The long process leaves you time to consider alternatives to bankruptcy.

Lenders lose money when they have to foreclose on a property. They are often open to negotiating with you to find a solution or to help you sell your house fast in California. If you want to negotiate, call your lender as soon as possible. The sooner you seek help then the more options you will have.

Foreclosure Alternatives

The two most popular foreclosure alternatives are:

  • Loan modification: Reduces your monthly payment by changing the terms from an adjustable rate to fixed rate, extending the loan or forgiving past-due balances
  • Forbearance: Suspends payments temporarily by adding them to the back end of the loan

If you are unable to secure a loan modification or forbearance, you may want to consider a short sale, in which you agree to sell your home for less than is owed. Lenders are encouraged to accept short sales due to government regulations. In many cases, you can sell your house fast in California through a short sale.

By being proactive, eventually, you will be able to look at other homes for sale in the South Bay Contact Redondo Mortgage Center for help with your situation by calling (310) 318-8999.


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