While the housing market is booming, many people in Dallas] 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 might be afraid that your mortgage provider is going to foreclose on you. This is a common fear and you’re not alone.
Thankfully, there are a number of things that you can do to avoid foreclosure in Dallas. It’s important to remember that moving quickly is absolutely paramount, and could save your credit and your home.
So let’s dive in on a couple of quick tips on how to avoid foreclosure on your home in Dallas.
The Keys of How To Avoid Foreclosure in Dallas Don’t Abandon Ship
Unfortunately, many people simply give up and walk away from their homes in defeat. Since the last financial crisis, there are some cities in the U.S. that have pockets that 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 a 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. And if you do sell your home, you have to make sure you sell for enough so that the entire loan balance PLUS back payments are paid off. Otherwise, the lender could pursue legal action against you 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 Dallas 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.
In case you don’t know what forbearance is, ultimately it’s the bank granting you a little extra time to get your situation in order.
• Ask for help from Uncle Sam. Over the last several years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program, also known as HAMP, allows struggling homeowners to modify their loans, if needed, in hopes of reducing monthly payments to make them more affordable. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments to refinance an adjustable-rate mortgage into a low-interest, fixed-rate loan. Both of these programs are subject to eligibility requirements, of course.
Homeowners can visit also consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines during this COVID-19 Pandemic Era: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/
We understand that the possibility of losing your home can be very stressful and scary. You aren’t alone. Citizens all over Dallas 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. Because the longer you wait to stop the foreclosure, the fewer options remain for you.
We have another blog that I think you would find very helpful when trying to avoid foreclosure, and it goes over the 9 different ways you can stop a foreclosure.
We may be able to help you avoid foreclosure! Connect with us today and let’s discuss your situation. We don’t charge any fees, we’ll evaluate your situation, and present you with your options so you can make the best decision for you and your family moving forward and get this foreclosure behind you.