Avoiding Foreclosure in Las Vegas
Few things are as devastating as losing your home. But it's not always inevitable. In many cases foreclosure can be avoided with some outside help.
Finding a New Home
Don't believe that it will be better to let the foreclosure happen, because after you lose your home, you will still need to find a new place to live. All too often, the price you will need to pay in rent will be almost as high if not higher than your current mortgage payment. Remember: The owner of the property needs to make his mortgage payment, too, so he's going to charge a rental payment that's higher than his mortgage costs.
It's not uncommon that the sale of the home is insufficient to cover the remainder of the mortgage. When the property has been damaged, or market values have dropped, the owner may end up with a bill in the tens of thousands for the difference.
Despite what many people think, most lending institutions are not anxious to foreclose. It's a last-ditch effort to recover their money and minimize their losses, and it's an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources for help that you should be aware of, and most lenders will be happy to hear that their clients are going to try to keep their home rather than just await a foreclosure.
Housing Counseling Agency
The US Department of Housing and Urban Development maintains a list of HUD-approved counseling agencies. Call (800) 569-4287 to find the agency nearest to you.
FHA borrowers may qualify to have HUD make a one-time payment to bring their mortgage current. See www.hud.gov/foreclosure for more information on the requirements to qualify.
Different Mortgage Program
Talk to a loan officer about the possibility of refinancing your mortgage to a more affordable program.
Many borrowers can qualify for a new payment structure if they've had an increase in their cost-of-living, such as unexpected medical expenses, or a decrease in wages. This payment structure will allow the owner to repay the lender in a given time frame.
Even if you are not able to keep your home, often a negotiated sale or "short sale" can be arranged with your lender. This will affect your credit less adversely than an outright foreclosure and allow you the possibility of buying another home sooner. Many lenders are also giving sellers a "cooperation credit" at closing, usually $2k to $3k, for maintaining their homes in good condition during the short sale process. This gives homeowners extra cash for moving after the sale.
If you are interested in finding out more about your options, the Tonnesen Team can help. Call us at 702-985-7654, or fill out our simple online contact form below.
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