Even though the housing market is red hot, many people are still struggling to make their mortgage payments and avoid foreclosure in Philadelphia.
If you’re underwater on your home, or having trouble keeping up with your monthly mortgage payments, you could be fearful that your mortgage provider is going to foreclose. Do you want to know how to avoid foreclosure in Philadelphia.
Thankfully, there are a number of things that you can do to avoid foreclosure in Philadelphia. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating and your home. Foreclosure is not something to be taken lightly.
So lets dive in on a couple quick tips on possibly how to avoid foreclosure in Philadelphia with your home.
Guide: How To Avoid Foreclosure in Philadelphia – Don’t Give Up!
Many people simply give up and walk away from their home. There are even areas of Philadelphia have begun to resemble ghost towns, as the residents have abandoned their homestead, left the bank to figure it out and moved out of town or out of state..
Detroit is a prime example of what can happen when people abandon their homes. It severely impacts the local economy and makes the area a difficult place for living and business.
This can be stressful situation, but it’s extremely important to keep your wits about you. A foreclosure will have a huge negative impact on your credit score, and likely prevent you from purchasing a home for years to come. Think of it like a “bankruptcy”. If you sell your home, you could leave a portion of the loan unpaid, and the lender could pursue legal action against your for the unpaid portion. This is called a deficiency judgment.
While it’s extremely stressful, you do have options:
• Negotiate with your mortgage lender. Banks and other financial institutions are well aware that citizens of Philadelphia are struggling. If you haven’t missed a payment yet, you may have some leverage to renegotiate the terms of your loan. Banks don’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. Again – banks want you to stay in the home so they can continue to hold your note and collect interest. That’s how they stay in business. Work with them and come to a reasonable and workable outcome!
• Ask for help from Uncle Sam. In the last decade, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, 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.
We understand that the possibility of losing your home can be stressful, daunting and outright frightening. You aren’t alone. Residents all over Philly are going through the same troubles. It’s just not something they talk about or advertise.
Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home. Win-win!
Looking for a next step? My team and I may be able to help you avoid foreclosure… connect with us today and lets discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you.