If you have fallen on hard times, or are living from paycheck to paycheck, even the slightest change in your income can have significant rippling effects. One of these rippling effects can come in the form of a default on your mortgage payments.
If you are unable to make your mortgage payments, your bank or mortgage provider will take steps to recover its money through foreclosure. The good news, however, is that you can avoid foreclosure, as well as its direct and indirect consequences by selling your home before the foreclosure is complete.
So how do you get the best deal for your home and avoid foreclosure?
Know your home’s value
Pressure notwithstanding, you want the best possible deal from your home sale. And there is no better way of kicking the sale process off than by determining your home’s current value first. A real estate agent with experience in pre-foreclosure sales may be best suited to help you price the property to sell quickly, especially if you can’t afford to make repairs.
Just the same, you need to have enough equity in the home to cover the remaining mortgage and your agent’s fees. Otherwise, this might not be feasible.
Negotiate with your lender
Lenders usually would prefer not to foreclose. They’d rather just have their money. You may be able to negotiate for a little more time if a sale looks possible. Staying in contact with your lender is essential.
A home is definitely one of the most important assets you can ever own. However, if you run into financial difficulty thus unable to honor your mortgage payments, then you need to understand your legal options when facing a foreclosure.