Travis Jones of Rush Properties, foreclosure is one of the most devastating financial burdens that a homeowner can face. The good news is that foreclosure can often be avoided. The options available to homeowners are many, but it is best to seek assistance as soon as possible since waiting may delay help and eliminate options.
Foreclosure prevention experts can provide a borrower with important information on how to create a plan to avoid foreclosure or minimize the impact, says Travis Jones, Rush Properties’ former president. Many lenders are willing to work with borrowers in order to help the homeowner avoid foreclosure, says Travis Jones of Rush Properties. Some offer a forbearance plan that may suspend or temporarily reduce a mortgage payment for a certain time. A loan modification involves changes to the original loan agreement. These changes usually result in a lower mortgage payment, states Travis Jones of Rush Properties.
With a reinstatement plan, the homeowner requests the total amount owed to the mortgage company to date and pays it. Refinancing the mortgage may be an option if there is enough home equity to pay off the previous mortgage with a new one. To avoid negative credit consequences, a borrower can give the lender the deed to the property in exchange for canceling the debt. The homeowner still has to vacate the property. Filing for bankruptcy automatically stops all debt collections. This may help the homeowner save enough money to catch up with the mortgage payments.
According to Travis Jones of Rush Properties, for some homeowners, the best option may be to sell. Homeowners with sufficient equity can place the home up for sale and repay the lender with the sale’s proceeds. If the home is worth less than the amount owed, a borrower can hire a qualified real estate agent to sell their property through a short sale, says Travis Jones of Rush Properties.
Travis Jones Rush Properties 