Most Lenders Want To Avoid Foreclosure
The main thing to understand when faced with a possible foreclosure is that the banks, lenders or mortgage companies do not want it any more than you do. They themselves want to avoid foreclosures.
It depends on you how you contact your mortgage or bank to see if refinancing with other loan is even possible. The sooner you do the process in the same way better you will find. There are many states which have foreclosure laws that give you more time than others. But if you live in Texas you have less than a month to make an overdue payment before the foreclosure process starts.
If in any case you can not avail refinancing, then try to work out a plan with your lender to modify your current loan that would allow you to make either a smaller payment or to miss a payment until you have the funds.
This option is possible if you can prove that you will have money coming in the future, such as a bonus, from an anticipated tax income, an inheritance, or from payments you are owed for work you have already completed. You will have to prove that the money will be forthcoming. Your lender may insist this be done by a certain date.
Another type of possibility would be modify the loan to spread out past money due by adding portions of it to the regular monthly payments are up to date.
Some lenders, in order to avoid foreclosure are offering to let you sell the property for less than the total amount due to on the mortgage and then forgive the remaining debt. But it will depend on whether this option would cost the lender less than foreclosing. If you consider this option, borrowers have the added advantage of not having to put a foreclosure on their credit report.
Always remember that your lenders want o help get you back on the track. They only need their payments not your house. It is also noted that most lenders want to avoid foreclosure as much as you do. Work with them. Get help from legitimate agencies to manage your debt.
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