Homeowners struggling to make on-time mortgage payments, or those that have already fallen behind, need to be proactive to avoid foreclosure.
This is a scary reality for many Americans, and those in the Oklahoma City area are not exempt from this fact. The intense anxiety and fear of a looming foreclosure can be overwhelming and highly stressful. Thankfully, there are several options that can help you save your home and avoid foreclosure.
Learn more about preventing foreclosure on your OKC home below.
Avoid Foreclosure by Contacting Your Lender
If the threat of losing your home to foreclosure is becoming more and more real, the first step you will want to consider is to reach out to your lender and discuss your options. There are four ways lenders can help, and yours may offer one of them:
- REPAYMENT PLAN — You and your lender may be able to work out a payment plan within your budget. Over a set amount of time, you will make payments to make up for those past due as well as your regular monthly payments.
- REFINANCE — You may be able to get a new loan with different rates and terms that will cover your missed payments and the remaining balance on your home. This option does not negatively impact your credit and can potentially lower your monthly payment costs.
- LOAN MODIFICATION — Lenders are often able to alter the terms of your existing loan to help make monthly payments more manageable. For example, they may be able to change how much is due each month, your current interest rate, the loan’s length, etc.
- FORBEARANCE — Many lenders offer an option called forbearance — a special agreement where they defer mortgage payments for a set amount of time, which are typically tacked on to the end of your loan.
Avoid Foreclosure by Filing for Bankruptcy
Though filing for bankruptcy negatively impacts your credit, it can help you avoid foreclosure once you enter the “automatic stay.” You will want to work with a lawyer specializing in bankruptcy to help you understand each of your options, costs, time frame, and any repercussions involved. Keep in mind, bankruptcy will not permanently stop foreclosure, but it can postpone it.
Selling Your Home Can Help You Avoid Foreclosure
If your property is worth more than you owe on it after closing costs, you may want to think about listing your home to avoid foreclosure and save your credit. If your house is worth less than you owe on it, you may want to consider a deed-in-lieu or a short sale to avoid foreclosure — although these both negatively affect your credit.
Contact Sell Your OKC Home
If you’re a homeowner in the Oklahoma City, Oklahoma, area and are at risk of losing your property? Avoid foreclosure and contact the experts at Sell Your OKC Home. We buy houses in any condition for cash, eliminating the need to spend money on repairs, renovations, and even cleaning. Contact the home buying professionals at Sell Your OKC Home to get your fair, all-cash offer today!