What is foreclosure anyway?

Foreclosure is the legal process that lenders use to take back property securing a loan after the borrower stops making payments. This article will help you avoid foreclosure Farmville. Foreclosure is no fun.  But just know that it’s not the end of the world.

When you knowing how foreclosure in Farmville, VA works arms you with the knowledge to navigate it well and come out the other end as well as possible.

What You Can Do to Avoid a Foreclosure?

If you’re a struggling homeowner in danger of falling behind in your mortgage payments, you should be proactive when it comes to saving your home from foreclosure. Your lender doesn’t really want your home and will potentially work with you to keep you in the property.

Learn about your legal rights.

Take the time to carefully read your mortgage documents so you know what will happen when you don’t make your payments. The mortgage (or deed of trust) and the promissory note will contain important information. Look to see whether you can reinstate the loan by catching up on the past-due amounts. What the amount of late charges and other fees that may be required when you are behind on mortgage payments will be, etc…

Under federal law, in most cases, the lender can’t start a foreclosure until you’re over 120 days delinquent in payments.

Know your options.

Often, borrowers have access to permanent or temporary loss mitigation options to help them avoid a foreclosure. Here are just a few possibilities:

Loan modification. A loan modification is a permanent change to your loan terms. For example, a modification might extend the amount of time you have to pay off the loan or reduce the interest rate. With a loan modification, the servicer can often add any past-due amounts to the loan balance. Depending on your circumstances, you might qualify for a loan modification.

Forbearance agreements and repayment plans. If the reason you’re unable to make your monthly payments is temporary, you might be eligible for a forbearance agreement. With a forbearance agreement, the lender agrees to reduce or suspend the payments for a limited amount of time. Then you bring the loan current by paying back the missed or reduced payments in full, through a repayment program or a modification.

Communicate.

Call your bank and work with them:  Most banks are willing and ready to work with you. If you can show that with their help you can get back on track and save your house.  If you just want out of the house but you owe more on the house than it’s worth, see if the bank has any programs to lower the mortgage burden. That way you can get out from underneath it without it going through an expensive foreclosure.

Selling your house to avoid foreclosure

If you’ve exhausted all options and aren’t able to work out a deal that will allow you to keep the home, you might still be able to avoid a foreclosure by selling it.

If you have equity in the home, you can sell it and use the proceeds to pay off the mortgage. If you’re underwater on your mortgage loan, your lender might allow you to complete a short sale. A short sale is when you sell your home, but the sale proceeds are less than the loan’s balance.

Talk with a local real estate expert, like Linken Investments LLC. We know the local Farmville real estate market well and are very experienced in the foreclosure process here in VA.  Give us a call or text at 434-390-2906 so we can guide you toward the resources that can help you.

Click Here to Download Your FREE Stop Foreclosure Guide!

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