Foreclosure isn’t something anyone wants to worry about, especially since most of us don’t understand Utah foreclosure laws. Unfortunately, life sends a new obstacle every day, and sometimes they can’t be overcome. When you can’t make your mortgage payment or foreclosure is looming, you do have options.
When you realize that you can’t make your mortgage payment, your first step should always be informing your lender. You may think that they won’t work with you, but if you are willing to inform them of what is going on early in the game, they are much more likely to work out a deal with and provide you some form of relief.
If you know you’ll be able to make next month’s payment, but you can’t imagine being able to make double the payment to catch up, then you may speak to the lender about deferring that one payment to the end of your loan. Some lenders may call this forbearance. You won’t get out for free, but you won’t have to worry about doubling payments and risking foreclosure either.
Your next step is to take a look at your finances. If you really can’t afford your mortgage payment, possibly because your hours at work got cut or you lost your job and had to take a lower-paying one, then you need to consider asking your lender for a loan modification. This will delay foreclosure while the application is pending. If it is approved, then it wil stop foreclosure Utah and you’ll have a modified payment that you can hopefully afford.
Another option is to file for bankruptcy, as this will put a halt on foreclosure immediately as well as any other collection activities. However, bankruptcy isn’t a one-and-done deal and it most certainly is not usually the best option. You are never free of your debt. With bankruptcy, your creditors are agreeing to work with you in good faith to establish a reasonable plan for repayment, which will allow you to get back on your feet. Bankruptcy may be an acceptable option for some, but it isn’t the best option for most. Discuss your personal situation with a professional bankruptcy attorney to determine if filing for bankruptcy is a favorable strategy for you.
For a short sale to begin, your lender must first agree to willingly accept a payoff amount for your mortgage that is less than what you still owe to them. Essentially, the remaining balance of the mortgage is forgiven. A short sale can quickly resolve your financial problem without having to deal with the foreclosure of the home. However, you will still lose the home and you won’t make any profit whatsoever. You may even still be responsible for taxes and fees on the remaining balance that you owe to the lender. It does open you up to the opportunity of repairing your credit sooner rather than later as opposed to a foreclosure.
Unfortunately, most options have more drawbacks than they do benefits. Luckily for you, there is a way to avoid all of the consequences of foreclosure and foreclosure itself. All you need to do is get in touch with us at I Buy Utah Homes. Our foreclosure prevention services will work with your lender to put a stop to the foreclosure process and can usually work with you — quickly and effectively — regardless of how much you owe on the property. Don’t sit in the dark waiting for the lender to kick you out of your home; let us help you get the mortgage out from under your feet so that you can find an affordable place to live and potentially avoid the negative effects that foreclosure has on your current and future credit. Fill out our form to the right to learn more about our foreclosure prevention programs. You can trust us to help with Utah foreclosure prevention.