Financial difficulties can be stressful, and if you are struggling to make your mortgage payments, losing your home may be a possibility. Having your home taken away due to a failure to make mortgage repayments is called foreclosure under the law.
This blog is a brief overview of how it’s possible to take matters into your own hands and take steps to prevent foreclosure.
Inform your lender if you are struggling to make repayments
The best thing that you can do if you are struggling to make mortgage repayments is to have good communication with your lender. You can then discuss the matter together and come to mutual decisions on the best way forward.
Know your rights when it comes to your mortgage
It’s important to make sure that you are well-informed when it comes to your rights as a mortgage holder. There will be specific time frames depending on the state that you should be aware of.
Use your assets and re-prioritize your spending
You may have possessions such as jewelry or a car that could be sold to help you to keep on top of your mortgage repayments. Doing this will also help to build trust with your lender. Make sure that you prioritize your mortgage repayments and put it before any unnecessary spending. Think about nonessential spending, and look for ways that you can lower your outgoings.
Understand your prevention options
Prevention of foreclosure is often called mitigation loss, and you can find more information about that here. Filing for bankruptcy can often be a way to avoid the loss of your home and put together a debt repayment plan.
Getting legal advice
If you are interested in knowing the possibilities of bankruptcy to help ensure the prevention of foreclosure, it is important to seek trusted legal advice so that your case can be assessed. Please contact a Quinn Law Firm bankruptcy attorney for a free initial consultation.
Source: FindLaw, “10 tips to avoid foreclosure,” accessed July 27, 2017