Foreclosures are becoming more and more common in our current economic environment. With a large portion of the population undergoing forbearance procedures, it’s the perfect time to learn about and how to avoid foreclosure.
Foreclosure is the process when the bank forces borrowers to surrender a property they are not making payments on. With many people being laid off, lots of people can no longer afford their monthly payments and have applied for forbearance procedures, which can only delay the inevitable for so long. For those who can’t find a job and make payments by the time their grace period ends, knowing your options is key to avoiding a foreclosure.
Foreclosure is a final call, and once you start there’s no magical safety net, there’s quite a few nets before starting the process.
There’s ways you can contact your bank to consider delaying payments. If your current forbearance ends in 6 months, under the CARES act you can extend it for another 6 months as long as homeowners have a GSE (Fannie Mae or Freddie Mac), FHA, VA, or USDA loan.
Another method is to perform a loan modification to work out a payment plan with your existing lender. This will likely delay paying your home in full, but it’s good idea when your home and job is at risk.
Lastly, though these are general statements, it’s a good idea to contact a loan officer to discuss methods of saving yourself from foreclosure and to see if you qualify for any of the above methods to avoid foreclosure.
