Tuesday, January 15, 2019

Ways Of Avoiding Foreclosure In Northwest Indiana

By Richard Morris


Buying a home is the dream of tens of millions of Americans. Hundreds of millions of other Americans are currently servicing their mortgages and live in their own homes. Others have settled their mortgage balances and have taken out home loans for one reason or another. Unfortunately, there are homeowners who are facing foreclosure in Northwest Indiana.

If you fail to service your mortgage according to the stipulated terms and conditions, you should expect the lender to repossess it. The process of repossessing real estate after loan default is called foreclosure. After completion of the process, the borrower will be adversely listed as a defaulter.

When you home has been foreclosed on, your lender will have you listed as a defaulter, so your credit rating will reduce considerably. This will reduce your chances of securing an affordable loan in the future. Buying another home will also be a huge challenge. You may also have a difficult time getting a better job as employers nowadays run credit checks, and they often avoid job applicants with poor credit ratings.

After repossession of your house, your family will have to stay in a hotel or a rental property. You can also stay with friends or relatives, which can be embarrassing. Therefore, it is in your best interest to stop the process. In addition to that, all the equity you might have accumulated over the years will be lost. Therefore, you should do everything you can to stop the process.

The best way to prevent the bank from repossessing your home is to short sale the property. Simply talk to your lender before they complete the repossession and ask for a short sale. You must also find a buyer who is willing to buy the property at a price that is below the outstanding balance of your mortgage. While you will lose both your house and equity in the transaction, you will preserve your high credit rating and avoid getting listed.

Missing a few payments does not warrant the bank to repossess your home. If you have not yet received a notice of default, therefore, you should think about selling the house to pay off your mortgage and recover your equity. However, this can only be possible if the property has not been added to foreclosure listings.

The last option you should consider is declaring bankruptcy. When you have been declared bankruptcy, your mortgage lender will be prevented from repossessing your property. This will give you time to look for funds to make up for missed payments to ensure you are current. This will not only prevent foreclosure, it will also give you a chance to retain your home.

There are several ways of ensuring you do not default on your mortgage. The first is mortgage refinance. This is meant to reduce the monthly payments to make the loan more affordable. Be sure to look for a lender that will not only extend the repayment period, but also reduce the rate of interest you pay.




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