When homeowners fail to make three or more mortgage payments, the lender may start the foreclosure process. However, this doesn’t mean that there aren’t any options or ways to avoid foreclosure. Understanding these options may make it possible to keep the home or at least sell it and avoid the stigma of a Foreclosure in Cincinnati OH.
The first step in minimizing the risk is to talk to the lender as soon as it’s clear there may be a problem that will make it difficult to make the mortgage payments. Lenders are often willing to work with buyers to come up with a plan, which may include restructuring the terms of the mortgage. However, once a homeowner starts missing payments and the foreclosure process starts, it’s harder to negotiate.
Contact the Making Home Affordable Program
This program offers a number of strategies to help minimize the risk of foreclosure and may work with lenders to refinance the loan make the payments easier, reduce the principle, or even temporarily suspend the payments because of unemployment. This program can also help people who want to leave home for one that’s more affordable sell the home and purchase a more suitable one.
Try to Sell the Home
In some cases, the lender will accept a short sale, in which the home is sold for less than the homeowner owes, instead of foreclosing. As long as the deal is reasonable, it can be less trouble and less difficult for the lender to recoup as much as possible of their losses through a short sale than through Foreclosure in Cincinnati OH. Of course, this is only suitable if the homeowner is willing to give up the home to avoid a foreclosure on their record.
One of the last resort options for avoiding a foreclosure is to declare bankruptcy. This gives the homeowner time to work out a solution, as all collection activities must stop during the bankruptcy process. It doesn’t mean the money owed won’t need to be paid back, but a reasonable payment plan for the next five years will be developed to help resolve debts, including the mortgage.
Learn more about us by visiting our website. R. Dean Snyder can provide information about the bankruptcy process and the different types of bankruptcy.