If you are financially struggling and in danger of falling behind in your mortgage payments, it is important to be proactive to prevent foreclosure.
Facing potential foreclosure can be extremely stressful; however, there are many resources to help you get back on top of your payments and keep your home.
Here are six ways to help save your home if you are faced with the possibility of foreclosure.
1.Know Your State’s Foreclosure Laws
Foreclosure laws vary from state to state. You should learn about your state’s laws to understand how long you have to work out a deal and what your rights are during the process.
In New Hampshire, foreclosure permits a lender to take possession of the property that was used to secure their loan. This process can happen in less than 120 days. New Hampshire is a “non-judicial” state, which means that a lender can take your home without taking you to court if you are behind in your home mortgage payments.
2.Set up a Case File
If you are already behind on your mortgage payments or anticipate missing one, the first thing you should do is set up a case file. You will want to include the following documents:
- Mortgage loan documents
- Deed of trust
- Promissory note
- Monthly billing statements
- Payment history
- Escrow statements
- Property tax information
- Insurance information
- Recent pay stubs
- Bank statements
- Federal tax return documents
- Supporting documentation for any other income you receive (social security, alimony, etc.)
3.Review Your Budget
Take a look at your income and expenses. Before missing a mortgage payment, create a budget to see if reviewing your spending habits could improve your circumstance. Look for ways to reduce everyday expenses (such as eating out), monthly expenses (gym memberships, entertainment subscriptions, etc.), and bill amounts. You might be able to negotiate a lower payment on credit card debt or other loans.
4.Communicate With Your Lender
Communication with your lender is perhaps the most significant way you can prevent foreclosure. Now that you have prepared a case file and reviewed your budget, you are prepared to present your case to your lender. Your lender may be willing to negotiate a plan to relieve your situation.
5.Explore Your Loan Options
- Loan Modification – You might be able to negotiate a plan that results in lowering your monthly payment amount, reducing your interest rate, or extending the length of the term.
b.Forbearance – If your inability to make payments is temporary, you might be eligible for a forbearance agreement. This reduces or suspends your payments for a set period of time.
6.Other Resources for New Hampshire Residents
- Foreclosure Relief Project – legal assistance
- Making Home Affordable (MHA) Program – foreclosure avoidance counseling
- New Hampshire Housing Finance Authority– foreclosure avoidance programs
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If you cannot afford your mortgage payments and would like to sell your home to prevent foreclosure, NH Home Buyers will buy your house as-is and put more cash in your pocket. We are eager to offer you a fair price without fees or commissions.
If you live in Hillsborough, Rockingham, Merrimack, or Strafford counties in New Hampshire, we want to pay you cash for your home, regardless of its condition. Contact us today for more details.
