As a property owner, you’ll be pleased to know that you do have several options to avoid foreclosure in Houston. Although they all have varying success rates, borrowing from acquaintances, loan modifications, filing for bankruptcy, secondary loans, and selling to a cash investor are all possibilities you can consider.
You also have to know that all foreclosure options aren’t equal in any way. Some methods previous homeowners have used in the past have made them go broke and still drowning in debts. As funny as this may sound, the least likely option is usually the best one if you wish to disrupt and eventually halt the process.
You have to try everything when fighting to keep the house. One common option you might consider is modifying the preexisting mortgage. The first step is to make contact with the lending company and asking for a loan modification program. However, it’s difficult to meet the strict regulations, and that’s why many homeowners will seek alternatives in their quest to keep the foreclosure process at bay.
A loan modification can change the terms of an agreement between a creditor and borrower. If you can get the lender to understand your financial situation, they would be willing to extend the loan term, lower the interest rates, or reduce the original amount. The ultimate goal is to reduce the monthly payment plan so that you may be more comfortable making the payments.
The only way you can keep your creditors satiated is by finding cash fast. In that case, if you’re cash-strapped, approach a family member or close pal and ask for a loan. Just don’t borrow an astronomical amount because you might not be able to pay them back and at the same time lose your home to the bank. Sabotaging the relationship you have with family for money is not worth it.
Some homeowners have also tried to borrow cash from various loan-offering entities to offset the mortgage. It’s not a wise move trying to pay off one loan with another because it can dent your credit score and lead to significant debt.
It’s another ill-advised option if you find yourself having to deal with financial distress. Several people will approach you with blanket statements meant to give you hope. For instance, one will tell you how simple it is to file bankruptcy which will help you keep your home and at the same time not pay what you owe the bank. By the time you realize it was a fallacy, it will be already too late to do anything. Filing for bankruptcy buys you more time, but won’t make the problem go away.
If you think foreclosure is imminent, you can sell the home to a cash investor and use the sale’s proceeds to pay off all your debts. In the end, you will have extras left for a fresh start. Of all the four options this is by far the best one on the list.
Contact us and learn more about the process.