Avoiding Foreclosure When You Can’t Afford to Keep Your House

When you look for advice about avoiding foreclosure, it becomes obvious that the best way to stop the bank from trying to get its paws on your house is not to borrow a mortgage loan that you cannot afford.  To someone who has fallen behind on mortgage payments, this is as unhelpful as saying, “Don’t get sick,” or, “Get a job with health insurance,” to someone who is struggling to pay medical bills.  People who take out mortgage loans with high interest rates do it because it is the best deal they can find, just as people who agree to adjustable-rate mortgages are aware of the risks; they do it because the only other option is continuing to rent, which is not exactly a road to prosperity, either.  If you have missed one mortgage payment, you can buy time by asking your mortgage lender to modify the terms of your loan.  If you already did that, and you still can’t pay, then giving up your home is probably inevitable.  That does not mean that you have to go through a legal battle over foreclosure, though.  A Plantation foreclosure defense lawyer can help you mitigate your financial losses if you have passed the point where you can simply pay the overdue amount and go back to making mortgage payments on schedule.

Accepting Your Fate Courageously

During the foreclosure process, the bank that lent you the mortgage files a legal action for the court to declare the bank the legal owner of your house.  The court usually sides with the bank, because when you signed the mortgage loan, you agreed to secure it with the house; this means that, if you do not repay the loan, the bank has the right to take possession of it.  In other words, you consented to the foreclosure long before it happened.  It only makes sense to stall if you are sure that you will soon receive enough money to repay the overdue amount.

If you know you cannot pay, it makes more sense to willingly hand over the house to the bank.  It means that you will have to move out of your house, but it also means that you will be able to get out of your mortgage loan obligations faster and with less expense.

The Next Best Thing to a Deus ex Machina

You have another option, a more appealing one, if you have an FHA, USDA, or VA mortgage, namely, your mortgage is assumable.  This means that you can sell your house and let the buyer take over responsibility for the mortgage loan.  This is almost always less expensive for buyers than starting over with a new mortgage loan.  The buyer must pay you a down payment equal to your equity in the house, but the buyer will get enviably low monthly mortgage payments.

Work With a Debt Lawyer About Mortgage Foreclosure

A South Florida debt lawyer can help you if you are running out of options to keep paying your mortgage.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

finance.yahoo.com/news/want-buy-sell-home-3-090731680.html