Many homeowners mistakenly believe that once a foreclosure notice is received, they will inevitably lose their homes. However, that’s often not true. In reality, several foreclosure alternatives may help you protect your home and gain control of your situation.
Here are some options that some homeowners choose over foreclosure.
Loan Modification
A loan modification is an agreement with a lender to change the original terms of your mortgage. The modification allows for adjustments ranging from lowering interest rates to adding any missed payments to the end of the loan. For many homeowners, a loan modification can provide long-term relief and help them stay in their homes.
Repayment Plans
Many homeowners who are facing foreclosure are also facing financial hardships such as job loss and medical expenses, and have a difficult time keeping up with their payments. Thankfully, repayment plans allow them to catch up with their missed payments by spreading them out over several months in addition to their regular mortgage payment.
Short Sale
If keeping a home is no longer feasible, some homeowners may opt for a short sale. This allows them to sell their property for less than what is owed on the mortgage with lender approval. The lenders can avoid foreclosure by taking a loss on the mortgage balance and helping the homeowner sell. While it’s often a lengthy process, some homeowners see it as the ideal option compared to foreclosure.
Foreclosure Does Not Define Your Financial Future
With the right legal strategies, there are many paths you can take to regain control of your situation. Our team at Todd Cushner & Associates is here to help. Contact us today at (914) 600-5502 for more information.
