Sunday, January 13, 2019

Ways Of Avoiding Foreclosure In Northwest Indiana

By Richard Morris


Millions of people around the country are currently looking for loans to buy a home. Millions of others are currently servicing their home loans while others have defaulted on their mortgages and are about to lose their home to the bank. If you have defaulted on your loan, you should know that you still have options for stopping foreclosure in Northwest Indiana.

Failing to make your mortgage payments accordingly can have serious consequences. For starters, your bank will initiate foreclosure proceedings. The end result of this process is usually loss of not just your home, but also equity, and damage of your credit rating.

When you home has been foreclosed on, your lender will have you listed as a defaulter, so your credit rating will reduce considerably. This will reduce your chances of securing an affordable loan in the future. Buying another home will also be a huge challenge. You may also have a difficult time getting a better job as employers nowadays run credit checks, and they often avoid job applicants with poor credit ratings.

After your home has been foreclosed on, you will obviously have to look for another place to stay with your family. After all, your home will be gone. In addition to that, your equity will be gone. If you had serviced your mortgage for a decade, you will lose all the equity you might have built in the 10 years you have been servicing the debt. This is a huge loss.

If your property is about to be repossessed by the bank, the best option for stopping the process is short-selling the property. This is the process of selling the house at a lower price than it is worth to settle your mortgage balance. The selling price must be lower than the outstanding balance and the lender must approve the process. As you can see, you will lose both your home and equity through this process, but you will avoid getting adversely listed.

If you have missed a few payments, but you have not yet received the notice of default, you might be able to stop the process easily. All you need to do is put your property on the market. You can sell at the current market value or at a premium to not only recover your equity, but also make a profit. After settling your mortgage balance, you can buy a smaller house that you can afford.

A declaration of bankruptcy can stop foreclosure. After all, creditors will be stopped from taking any legal actions to recover their funds or assets. During the bankruptcy proceedings, you can look for some cash to cover missed payments. Once you are current on your mortgage, the lender will stop the process of repossessing your home. While your credit may be damaged, you will be able to save your equity and home.

If your mortgage is too expensive for you to afford, consider refinancing it. By refinancing your mortgage, you will be in a position to reduce your monthly payments, thereby making your mortgage much more affordable. There are many lenders that can refinance your mortgage, so you should not just look at your current lender.




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