If you fail to make your home mortgage payments, foreclosure is probable. Foreclosure is the legal means that your lender can use to repossess (take over) your home. When this happens, it is a requirement that you move out of your house. If your property is valued at less than the total amount that you owe on your mortgage loan, a judgement of deficiency could be pursued. If this happens, not only will you lose your property, you will also owe the lender more money. Both foreclosures and deficiency judgments wreck your credit and severely affect your ability to qualify for credit cards or loans in the future.
Below are some tips on avoiding foreclosure in Pittsburgh:
1. Don’t ignore the problem.
As you become more and more delinquent on your payments, the harder it will be to reinstate your loan, the more your credit score is affected and the more likely it is that you will lose your home. Don’t avoid the problem!
2. Contact your lender as soon as you realize that you have a problem.
Most people believe that banks are out to foreclose on your property in Pittsburgh. Lenders really do not want to own your home. There are opportunities for them to help you during these times.
3. Open and respond to all mail from your lender.
This is so key! Some of the first notices that you will receive will offer informative bits about foreclosure prevention options and can help you with weathering your financial troubles. As you become more and more delinquent, later mail may include important notice of legal action. Your failure to open your mail will not get you anywhere in court.
4. Prioritize your spending.
After your own health, keeping your house should be your first priority. You have most likely sacrificed so much to get it! Review your finances now to see where you can cut your spending? This could means cutting Netflix out, your tickets to the Steelers game and delaying payments on credit cards and other “unsecured” debt until you pay off your mortgage.
5. Use your assets.
Can you get an extra job to bring in enough month to pay off the mortgage. Do you have any assets like jewelry, a whole life insurance policy, or anything else valuable that you can sell?
6. Avoid foreclosure prevention companies!
You don’t need to pay fees for foreclosure prevention help — use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender could offer you!
7. Don’t lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Watch out for ads on Youtube, Facebook or Google promising things that are a quick fix. Mostly importantly, NEVER sign a legal document without understanding all the terms and getting professional advice from an attorney or a trusted real estate professional.
If you still need to sell your property to avoid the bigger hit on your credit, we’ve been helping people with avoiding foreclosure in Pittsburgh for years by offering them a solution to sell their house or property quickly for cash at a fair price.
Call 412-404-0248 to speak with Clayton, our client success representative or fill out a form below.