We are in turbulent times and many homeowners are struggling to make their mortgage payments. If you’re having trouble with your mortgage payments, you might be concerned that your lender will foreclose on your home. This can be even worse if you are underwater on your home (meaning you owe more than it is worth).
Fortunately, you have a few options to avoid foreclosure in Omaha or in any city. The most important thing is to take action quickly so you can control the outcome, protect your credit rating, and possibly save your home. If you delay, you may lose control of your situation.
Let’s review the best ways to avoid foreclosure in Omaha with your home mortgage.
First Key to Avoid Foreclosure: Don’t Give Up
Sadly, it’s not uncommon for people to feel so overwhelmed that they just give up and walk away from their homes. Many cities have neighborhoods blighted by abandoned homes and this gets worse when the economy suffers. An example of this is Detroit following the 2007-10 downturn. It is tragic that so many people left their homes.
Facing foreclosure is stressful, but it’s critical that you stay focused and think clearly about your options. In addition to potentially losing your home, foreclosure has a long-term impact on your credit score. That could prevent you from buying a car or another home in the future. A foreclosure will typically stay on your credit report for up to 7 years, although some lenders will ignore it after just a few years. If you are underwater on your house and owe more than its worth, you’ll need to plan carefully to avoid leaving a loan unpaid and having the lender pursue legal action against you for the unpaid portion.
Next, Negotiate with your mortgage lender.
Lenders have become much more experienced in helping consumers facing financial challenges. In many ways, it has become a normal part of their business. That means your bank or financial institution may be more willing to help than you expect. If you haven’t missed a payment yet, you may first ask about forbearance (essentially delaying payments for a few months). You will still owe the balance, but it can be helpful if you face a momentary setup. Another option is to renegotiate the terms of your loan. That can be tricky if you don’t have any income to report but can be effective if you are facing a temporary setback.
There are some programs that only work if you’ve already missed a few payments. If you are behind on payments, there may be programs just for you. Remember that your bank doesn’t like foreclosing on homes, and many will work with you if you aren’t too far behind. You may be offered forbearance or even a full loan modification depending on your situation.
Can The Govermnent Help?
While the government isn’t always as helpful as they try to be, they are trying.
The CARES Act (Coronavirus Aid, Relief and Economic Security) was passed to offer relief to consumers struggling with the impacts of the COVID-19. Part of the Act allows mortgage payment forbearance and protections for homeowners with federally backed mortgage loans. That includes FHA, VA, USDA, Fannie Mae, and Freddie Mac. Most traditional mortgage loans qualify. No documentation should be required to request forbearance, just a claim that you are facing a Coronavirus-related hardship. Although the modification will show on your credit report, it will be removed once you are caught up with payments.
There are also prior programs that might provide some help, such as the Home Affordable Modification Program (HAMP) also allows loan modification, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments refinance an adjustable-rate mortgage into a low-interest, fixed-rate loan. Both of these programs are subject to eligibility requirements.
Ask An Expert for Advice
We understand that the possibility of losing your home can be stressful. You aren’t alone. We can come alongside and work with you through the process. Even if you just need to understand your options, we can work together to find the best path for your future. It may make sense to refinance or pursue forbearance, or it may be best to sell your home to a home buyer like us. We may be able to help you avoid foreclosure. We don’t charge any fees and we can close as fast as you need.
Connect with us today and we can discuss your situation. We’ll evaluate your situation… and present you with options so you can move forward and get this foreclosure behind you. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly to find the right option. You could save both your credit rating and remain in your home.