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When life-changing events occur, such as the loss of a job or a medical crisis, you may find yourself falling behind in mortgage payments. You may even feel trapped, not knowing what to do to rectify the situation. While foreclosure may seem imminent, it's important to know your other options, to make choices that help you preserve your credit a well as possible.
If you find yourself unable to pay your mortgage on time, you have a number of options available to you. By working directly with your lender, you may be eligible for reinstatement if you can promise to make a lump sum payment to bring your mortgage current. Alternatively, you may be allowed to utilize a forbearance plan, which enables you to delay payments for a short time with the understanding that after the period of delay, you will bring the account current. Banks will sometimes offer a repayment plan option whereby a portion of the delinquent mortgage payments would be added to your current payment over several months until the mortgage is caught up.
Whether you currently own a Dorchester home, Roxbury home, Mattapan home or Boston home, the stress of being unable to meet your financial obligations may be unbearable right now, and you may choose to be relieved of the debt completely. If this is the case, consider the following two options to avoid foreclosure. First, you may be able to sell your home while in the pre-foreclosure state. Many banks will allow you several months for this process, in order to reclaim some of what is owed. However if selling your home is not a viable option for you, and you are at least three months behind in payments, you may want to consider pursuing a short sale.
Essentially, a short sale can save you from total foreclosure, reduce or eliminate an expensive monthly mortgage payment, and allow the bank to reclaim some of what is owed. In a short sale, you sell your home for less than the amount you still owe on the mortgage. Your lender can either choose to forgive the balance that you owe, or allow you to pay the remaining balance in manageable installments. In this way, you avoid foreclosure and the bank recoups its money in a more timely and efficient manner than what would be possible with foreclosure.
Whether you're facing foreclosure or have more questions about real estate short sales, contact expert real estate agent Randy Wilburn.
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