Homeowners who have a hard time making on-time mortgage payments or have already fallen behind must be proactive to avoid foreclosure.
Foreclosure is a harsh reality for many Americans, and those in the Buffalo, New York area are unfortunately not exempt. The intense fear and overwhelming anxiety of a looming foreclosure can be highly stressful. If this is you, the good news is that you have options that could help you avoid foreclosure and save your property.
Learn more about how to prevent foreclosure on your Buffalo home below.
Contact Your Lender to Avoid Foreclosure
If the potential of losing your house to foreclosure is becoming more and more likely, the first thing you will want to do is contact your lender and talk about any options. There are several ways lenders may be able to help, and yours could offer one of them:
- REFINANCE — You could be able to get a new loan with different terms and rates that will cover some (or all) missed payments and the balance on your property. This option will not negatively impact your credit and could lower monthly payment amounts.
- REPAYMENT PLAN — You and your mortgage lender may be able to work out a budget-friendly payment plan. You will make payments towards past due amounts in addition to your regular monthly payments over a set amount of time.
- FORBEARANCE — You may find that your lenders offer an option called forbearance. This is a special agreement where your lender will defer payments for a determined amount of time and typically tack them onto the end of your loan term.
- LOAN MODIFICATION — Your lender may be able to alter your existing loan’s terms, making monthly payments a bit more manageable. For example, they could change the amount due, the loan’s length, your interest rate, etc.
File for Bankruptcy to Avoid Foreclosure
While filing for bankruptcy will negatively impact your credit score, it can help you prevent foreclosure after entering the “automatic stay.” Just remember, declaring bankruptcy doesn’t always guarantee you’ll stop foreclosure forever, but it can delay it. It’s best to consult an attorney who specializes in bankruptcy so you can fully understand all of your options, time frame, cost, and any potential associated repercussions.
Selling Your Property Can Help You Avoid Foreclosure
If you face foreclosure and your house is worth more than you owe after commissions, closing costs, and other taxes, you may want to consider listing your property. If you owe more than your home is worth, you might want to consider a short sale or a deed-in-lieu to prevent foreclosure — although both will negatively affect your credit score. However, selling your home to a professional home buyer won’t hurt your credit at all!
Avoid Foreclosure by Contacting WNY Home Buyers Today!
If you’re a homeowner in the Buffalo, New York, area and are at risk of losing your property, contact the pros at WNY Home Buyers to avoid foreclosure. We buy properties regardless of their condition for cash, eliminating the need to get your house ready for a sale by spending money on renos, repairs, and even cleaning the space. Contact the home buying experts at WNY Home Buyers today to get your fair, all-cash offer now!