Hundreds of nationalities are represented in and around Cleveland. And when it comes to homeownership, many residents become frozen under the pressure of home foreclosure. There are many reasons why homeowners fall behind in their loan payments: losses of employment, divorce, unexpected illnesses, or medical expenses. These can all be life-altering occurrences that can happen to anyone!
While Lenders Do Not Want to Foreclose and Usually Help You to Get Back on Track, There Are Some Steps You Can Take to Apply Solutions to Avoid Foreclosure.
1. Reinstatement
Might be possible when you are behind in your payments but can promise a lump sum to bring payments current by a specific date.2. Forbearance
In forbearance, you are allowed to delay payments for a short period, with the understanding that another option will be used afterward to bring the account current. Lenders sometimes combine Forbearance with Reinstatement. This is a good solution if you know you’ll have the funds to bring your account current by a specific date.3. Repayment Plan “Short Sale”
This is where the mortgage company will allow you to sell your property for less than the amount owed. This prevents the word FORECLOSURE from being on your credit, the mortgage company is paid and you can start over.4. Repayment Plan
A great option, as long as you have a steady income and can commit to making significantly higher monthly payments than before. Before you commit to a repayment plan, be absolutely certain that you can follow through with your commitment. Otherwise, you'll end up sending the bank a lot of money and still end up in foreclosure a couple of months later.5. Mortgage Modification
You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).6. Partial Claim
Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current. Contact a HUD-approved housing counseling agency for further information.7. Pre-foreclosure Sale
This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating.8. Deed-in-lieu of Foreclosure
As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it will help your chances of getting another mortgage loan in the future.If you need more info on solutions to avoid foreclosure, talk to us – CPD Homes, LLC! We are buying houses in Cleveland, and have been helping families and homeowners since 2012. We’ve been working with home sellers dealing with – inherited properties, divorce, behind on the mortgage, major repairs needed, sudden move, or for whatever reasons why homeowners sell their homes, CPD Homes is here to help. We buy houses in any condition and in all price ranges! So call us today to discuss your property at (216) 619-4387 – or click here to drop in your information and we will get back to you with a CASH offer! We are here to assist you!
