If you are struggling to make your mortgage payments you are not alone. Many people in Fort Worth and across the state of Texas are struggling to make their mortgage payments.
If you’re underwater on your home, or having trouble keeping up with your monthly mortgage payments, perhaps you are fearful that you will end up in foreclosure and lose your home.
Thankfully, there are a number of things that you can do to avoid foreclosure in Fort Worth. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating and your home.
So lets dive in on a couple quick tips on possibly how to avoid foreclosure in Fort Worth with your home.
The Keys of How To Avoid Foreclosure in Fort Worth Don’t Abandon Ship
Many people simply give up and walk away from their home. Detroit is a prime example of what can happen when people abandon their homes.
Facing a potential foreclosure can be a 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. 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.
While it’s extremely stressful, you do have options:
Negotiate with your mortgage lender. Call your lender and discuss your situation. Banks and other financial institutions are well aware that citizens of Fort Worth 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. Below are some possible options to consider.
- If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments. Check with your local Fort Worth mortgage broker… or contact us and we can connect you with a reputable one. Ask your mortgage company if you might be able to refinance into a lower payment before you go into foreclosure. But don’t wait too long to call the mortgage company because once you are in the foreclosure process you won’t be able to refinance.
- A second option if you aren’t able to refinance is to apply for a Mortgage Loan Modification. 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 to refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements. If you qualify it will change the terms of the original loan by lowering your interest rate or by changing the length of the payment terms. Either or both of these would lower your payments. A Mortgage Loan Modification might also include Principal Forgiveness where they agree to forgive a portion of your principal on the loan. Principal forgiveness is only considered if you owe more on your home than it is worth.
- Another option might be to request forbearance from the mortgage company. If approved this will pause your mortgage payments. But before the forbearance period is over you will need to have a new agreement with the lender. Unless you can pay the missed payments in a lump sum, the mortgage company will likely set up a plan to either increase your monthly payment or to extend the life of your loan.
- Talk with a local real estate expert, like Texas Best Home Buyers: We know the local Fort Worth real estate market well and are very experienced in the foreclosure process here in TX. Give us a call at (817) 808-4911 and we can help you understand your options such as loan modification, short sale or deed in lieu of foreclosure. We can guide you toward the resources that can possibly help you.
- You may be able to quickly sell your home to a real estate investor that’s reputable in Fort Worth like us at Texas Best Home Buyers, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments. We can buy your Fort Worth TX area home quickly, often in just a week or two, pay cash and take the stress out of trying to find a buyer.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy local Fort Worth houses for cash… and would love to look at your situation and make you a fair all-cash offer on your house. Just call us at (817) 808-4911 or shoot us your details through this website.
- You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. However, bankruptcy will remain on your credit report for years, and can cause significant damage.
We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Fort Worth are going through the same troubles. 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.
We 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 without the fear and stress of foreclosure.