While you think foreclosure will never happen to you, the FDIC says that “1 out of every 200 homes will be foreclosed upon. For a city like Washington, D.C., that translates to 3,000 Washingtonians losing their homes to foreclosure each year.” Those numbers are sobering. Even though the housing market is turning around, people in Baltimore and Washington, D.C. are struggling to make their monthly payments. If you find yourself in trouble, you might also be facing foreclosure on the horizon. Thankfully, we know of ways to avoid foreclosure on your home.
Moving quickly is key if you want to stay out of foreclosure, so let’s get right down to it.
Avoid Foreclosure in Baltimore and Washington, D.C.
Many people become overwhelmed at the thought of foreclosure, so they simply abandon ship. You might have noticed that there are entire areas in Baltimore that are beginning to look like ghost towns. Giving up or walking away is not the answer to your problem.
When people walk away from their homes, you end up with cities that look like Detroit. We don’t want to see that happen to the area we call home.
We understand that the situation is stressful, but you must calm down and strategize a solution. Allowing your home to go into foreclosure needs to be your final option because it’s going to have a profound effect on your credit rating. In fact, you’ll likely have trouble purchasing another home in the future. You also don’t want to look for loans to stop foreclosure.
Some people are under the impression that signing a Deed-in-Lieu of Foreclosure will protect them from the negative consequences. While it’s true that this action is you voluntarily signing the home back over to the lender and they forgive your mortgage, it has the same effect to your credit as if you foreclosed, so be careful.
If you opt to sell your home and leave the loan unpaid slightly, the bank could pursue action against you in the form of a judgment, so that is not an option either.
Now that we’ve reviewed the ways you don’t want to handle this situation let’s look at the ways to remedy your predicament.
Negotiation
The first step is to attempt to negotiate with the mortgage lender. They won’t give you loans to stop foreclosure, but there are some options. Most of the banks are aware that the locals are struggling to make ends meet. Your best chance of getting somewhere is to talk to them prior to missing a payment. This gives you the leverage you need to renegotiate the loan’s terms.
Contrary to what you might believe, most mortgage lenders don’t want to foreclose a home. Because of this, they are often willing to work with a customer as long as you aren’t falling too far behind. They might offer you forbearance or a full load modification. They could also point you in the direction of foreclosure assistance grants.
Government Assistance
Most people are also unaware that there are government programs available to help those in need. The federal government has a number of quality programs that are useful to look into if you are a struggling homeowner. Again, these are loans to stop foreclosure, but assistance for those who need it.
One of these is The Home Affordable Modification Program, otherwise known as HAMP. This program was created to help people avoid foreclosure by modifying their existing loan to the degree that makes it more affordable and long-term sustainable. There are both incentives available for the borrower and investor alike, so it’s a win-win situation. Keep in mind that this program is subject to eligibility, so not everyone will qualify.
You will also want to look into foreclosure assistance grants offered by the government. Sometimes you can qualify for programs they offer.
What’s Your Best Option?
Each situation is going to have its own best option to avoid foreclosure. We do know that this is a stressful time for you and want to reassure you that you aren’t alone in it. Aside from the other options listed above, we might be able to help you avoid foreclosure on your home.
If you need cash immediately so you can start over, we can help! Integrity Homebuyers is a group of investors located in the beautiful area of Maryland and Washington, D.C. We will purchase your house from you at a fair cash price. You don’t have to do anything! We’ll handle all the paperwork and cut you a check.
Not only will this solution stop the foreclosure process and protect your credit, but you can walk away with cash in your pocket. At Integrity Homebuyers, your home is more than just another piece of property to us. Your home is a piece of the communities we love and cherish. That’s why you can be sure we treat every home just as if it were ours.
By the way, if you think that you should only sell a house with a realtor, you need to read our Myths Associated with Selling a House without a Realtor. Give us a call at (800) 818-4145 or get an online offer quickly. We look forward to working with you.
We Buy Houses in Maryland and Washington DC
