Home ownership has long been the American dream, but for those facing foreclosure it can quickly turn into a nightmare. When you are in danger of losing your home, you cannot think about anything else, and everything from your relationships with your family to your performance on the job can suffer.
If you find yourself in this difficult and unenviable situation, you may think that you are totally out of options, but that may not be the case. No matter how dire the circumstances, there are strategies you can use to save your home and keep your investment intact. Here are four strategies that could stop the foreclosure from happening and keep you in your home.
Foreclosure Completion Numbers Continue To Rise. Lenders repossessed 4,784 U.S. properties through completed foreclosures (REOs) in January 2022, up 57 percent from last month and 235 percent from last year – the 7th consecutive month with an annual increase in completed foreclosures. January 2022 shows California had 1,226 started. Orange County, California is one of the hottest markets in the country. With government-mandated forbearance coming to an end, more than 1.2 million mortgages are now coming due.
If you are a borrower and have fallen behind on your mortgage payments, with the ultimate goal of you keeping your property, Saunders & Associates, APC, will help you achieve your goal. The difference between winning and losing come down to the law firm that represents you. Saunders & Associates, APC, has been practicing law since 1989.
We Will Stop Trustee Foreclosure Sales For:
In today’s economy, foreclosure sales are happening with increased frequency. Foreclosure proceedings often start within three to four months after payments become delinquent, but it can also happen when the borrower fails to meet other terms in the mortgage document. We guide our clients through difficult issues, bringing our insight and judgment to each situation. Our innovative approaches create original solutions to our clients’ most complex deals and disputes.
#2. Explore Governmental and Charitable Support Options
Society has a vested interest in keeping people in their homes, and no one wants to see families on the street and previously stable homeowners without a place to live. As a result the government has set up a number of programs aimed at supporting struggling homeowners. Some of these governmental programs will actually make the mortgage payments, while others work with banks and lenders to defer interest and penalties. No matter which one you qualify for, help from the government could give you the breathing room you need to catch up and stay in your home.
Even if you do not qualify for help from the government, you may be able to access assistance from local churches and other charities. There are many charitable organizations providing this kind of help, and taking advantage of it could mean the difference between staying in your home and being out on the street.
#3. Rent Out Your Empty Rooms
If you have extra space in your home, you might be able to rent out those empty rooms and bring in some much-needed cash. From young college students fleeing the dorms to travelers looking for a safe place to stay to retirees seeking a simpler way of life, the demand for rental space is high, and you could be the beneficiary.
In some cases, the rent you receive may pay the bulk of your mortgage, allowing you to catch up on your payments and giving you some much needed breathing room. Even a small amount of extra money can help, and room rental is definitely an option to consider.
#4. Borrow from Your Retirement Account
This is not an optimal solution, but it can be a last resort for homeowners facing foreclosure. Depending on the amount you owe in back mortgage payments, your overall financial circumstances and the amount in your retirement fund, a loan from your 401(k) or 403(b) could solve your current problems while giving you the time you need to rebuild.
Borrowing from a retirement plan is not the ideal solution, and it does come with a number of issues. For one thing you will probably be locked out of making additional contributions for a time, and that could reduce the amount you are able to accumulate. Even so, borrowing against your future to solve a present problem is sometimes the best (and often the only) option.
#5. Selling to an Investor
This is also not an ideal solution, but it could be the best choice under certain circumstances. From local buyers to large corporate real estate investors, plenty of people would be interested in your home, and many of them would be willing to let you live there.
This solution would essentially turn you into a renter, and it may not be the best choice for everyone. But if you are desperate to stay in your home and loathe to leave, selling out to an investor could be one way to avoid the pain and financial disruption of foreclosure.
Facing foreclosure is one of the most frightening things that can befall a homeowner. You have worked hard to afford the down payment, you have paid your mortgage on time, and now you have fallen on hard times. Now instead of helping you out and lending an understanding ear, the bank is swooping in to take your home.
When you find yourself in such a dire situation, it is important to explore all of your options, no matter how difficult or disruptive they may be. With the exception to strategy #1, the rest of the strategies outlined above may not be perfect, but they could all help you stay in your home.
If you need a law firm to handle all of your foreclosure needs, Saunders & Associates, APC, is the firm for you. We represent clients throughout California. Our clients’ are our focus. We are committed to leveraging our combined knowledge and experience to exceed our clients’ expectations. Let us help you every step of the way. If you are wondering what makes Saunders & Associates different. The answer is YOU. Saunders & Associates, APC is an excellent partner and guiding light for you, your business and legal needs.