While the housing market is rebounding, many people in Massachusetts] are still struggling to make their mortgage payments.
If you’re underwater on your home, or having trouble keeping up with your monthly mortgage payments, you could be fearful that your mortgage provider is going to foreclose.
Thankfully, there are a number of things that you can do to avoid foreclosure in Massachusetts. 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 Massachusetts with your home.
The Keys of How To Avoid Foreclosure in Massachusetts Don’t Abandon Ship
Many people simply give up and walk away from their home. There are even areas of Massachusetts have begun to resemble ghost towns, as the economy has impacted residents significantly.
Detroit is a prime example of what can happen when people abandon their homes.
This can be 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. Banks and other financial institutions are well aware that citizens of Massachusetts 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.
• Ask for help from Uncle Sam. Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. 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 refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements.
Explore Short Sale Options to Avoid Foreclosure in Massachusetts
- Consider a short sale to prevent foreclosure. A short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage. This option can help you avoid foreclosure, as the lender agrees to accept the sale proceeds as a settlement for the outstanding debt. While a short sale will still have an impact on your credit score, it is generally less severe than a foreclosure. To initiate a short sale, you’ll need to contact your lender and discuss the possibility. Keep in mind that not all lenders will agree to a short sale, and it may take some negotiation to reach an agreement.
Rent Out Your Home to Cover Mortgage Payments
- Rent your property to cover mortgage costs. If you’re struggling to make mortgage payments, one option to consider is renting out your home. By doing so, you can use the rental income to cover your monthly mortgage payments and avoid foreclosure. This option is particularly useful if you have a secondary place to live, such as a family member’s house or a rental property. Before proceeding with this option, it’s essential to check with your lender to ensure that renting your property is allowed under your mortgage agreement. Additionally, you’ll need to comply with local laws and regulations regarding rental properties.
Sell Your Home to a Real Estate Investor
- Sell your house quickly to a real estate investor. If you’re facing imminent foreclosure and need to sell your home fast, a real estate investor like Pegasus Home Buyers can be an excellent option. Real estate investors can often close quickly and pay cash for your property, which can help you avoid foreclosure and the negative impact it has on your credit score. While you may not receive the full market value for your home, the speed and ease of the transaction can be a valuable trade-off in a difficult situation. Contact a reputable real estate investor in Massachusetts to discuss your options and receive a fair cash offer for your home.
We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Massachusetts 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.
In conclusion, there are several options available to help you avoid foreclosure in Massachusetts. By acting quickly and considering alternatives like negotiating with your lender, seeking government assistance, exploring short sales, renting out your property, or selling to a real estate investor, you can potentially save your credit rating and your home. Remember that you’re not alone – many homeowners in Massachusetts are facing similar challenges, and there are resources available to help you navigate this difficult time.
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 and get this foreclosure behind you.