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What can I do to avoid foreclosure?

On Behalf of | Sep 15, 2021 | Mortgages |

Homeowners throughout the country continue to fight off foreclosure. Many continue to struggle with finances after the COVID-19 pandemic threw a wrench into their plans. Some had to cut back on work hours, others lost their jobs. Whatever the cause for the financial difficulties, those that found themselves in this position were not alone.

What are other homeowners experiencing?

Homeowners are struggling. According to a Jacksonville based real estate analytics company, approximately 1.5 million borrowers in the United States are 90 or more days past due on their mortgage payments as of August. The group also finds the number of homeowners who are seriously delinquent remains “significantly elevated.”

What options are available for homeowners that are struggling to make mortgage payments?

One of the first options is to see if you can negotiate with your mortgage provider. In some cases, they may be willing to adjust the terms of the mortgage agreement to a more manageable payment plan. If this does not work, other options can include a deed-in-lieu of foreclosure or short sale. A deed-in-lieu of foreclosure essentially means the homeowner turns their home over to the lender to avoid the foreclosure process. In some cases this can result in the waiver of any deficiencies. It is important to carefully review lender documents to see if this is an option.

A short sale results in the lender selling the home for less than the loan amount and using the proceeds to forgive any remaining debt. This can help you move on without the burden of the foreclosure process.

These are just a few options. The right choice will vary for each situation. As a result, it is wise to speak with a professional to discuss your options to help better ensure you make the right decision for your future.