Foreclosure is a daunting prospect for any homeowner. The good news is that there are many options for avoiding foreclosure. The process is expensive, and banks like to avoid it whenever possible. As a result, it is important to consult with an attorney about the options that could be available to you to avoid foreclosure.
Different Ways to Avoid Foreclosure
There are many options available to homeowners for avoiding foreclosure. Not every option will be available to everyone, but it is important to learn about these common solutions:
A mortgage modification is one of the few ways to avoid foreclosure while allowing you to remain in your home. Modifying the terms of your mortgage can reduce your monthly payment, thus preventing you from getting behind. It is important to understand that this option requires your lender’s consent. Lenders will not always offer modified terms – especially if your arrears have gone on for a long time, or have grown to an untenable amount. Borrowers who act early have better chances of obtaining a lower monthly payment from their lender.
Homeowner Assistance Programs
Assistance programs are available to help homeowners avoid foreclosure. The US. Department of Treasury launched the Making Home Affordable Program in early 2009. This was a large, national effort to assist homeowners who were affected by the mortgage crisis of late 2008. One of the largest and most popular programs within the MHA is the Home Affordable Modification Program (HAMP). Ask a real estate attorney what federal, state, or local programs might be available to you.
A short sale occurs when a bank agrees to let you sell your home quickly at a distressed rate. This often results in the bank accepting less than it is owed on the mortgage, but many lenders will agree to this in order to avoid the costs of foreclosure. If you are not looking to stay in your home, a short sale is an effective way to walk away from it without additional debt.
Many real estate investors are interested in purchasing homes that are facing foreclosure. If the numbers work out, the investor can pay off the bank to avoid foreclosure. If you sell your home to an investor instead of short selling it, you also avoid the short sale being reported on your credit.
Call Us Today to Schedule a Consultation with a New Jersey Foreclosure Attorney
The sooner you get legal advice regarding your situation, the more options you will have for avoiding foreclosure. Call the Law Office of Attorney Lawrence M. Centanni at (908) 351-0028 or contact us online to schedule your consultation.