Foreclosure is a prevalent issue in the Columbus metropolitan area. In such a situation, the lender’s primary concern is protecting their interest in the property. They generally provide sufficient warning and notice before taking any legal action. If you are facing a circumstance that could lead to foreclosure on your Columbus property, there are steps you can take to address the problem. Here are some tips that may help you avoid or overcome the situation.
Talk To The Lender
If you find it challenging to meet your mortgage payments, contact your lender as early as possible. Despite receiving payment reminders, do not feel embarrassed or hesitant to contact your lender. Delaying the process could worsen the situation and lead to more severe consequences.
Based on your present financial status, the lender may offer you options for loan modification. Typically, most lenders agree to a repayment plan that suits your present financial circumstances. In some cases, they may even be willing to forgive one or two payments. However, it’s essential to note that such debt forgiveness is a rare occurrence.
Spreading out the missed payments over a longer period of time is another option that can help to alleviate the pressure of having to pay a large sum all at once.
For instance, your lender may agree to add a certain amount to your regular payments each month until you have repaid all pending charges. Alternatively, your lender may also allow you to refinance your loan, add the back payments to your loan payment, or extend the amortization period.
Be honest with your lender about your financial situation and work together to find suitable ways to avoid foreclosures. If this is not possible, you have the following alternatives to stop the foreclosure.
Sell Your Columbus House Or Rent It Out
Selling your home is the simplest way to avoid foreclosure. If you prefer to avoid the complexities of a traditional home sale, sell your property directly to leading cash home buyers in Columbus, GA.
These “we buy houses in Columbus, GA,” purchase properties without having to make any repairs and can thus expedite the selling process. With this option, you can sell your home without making any repairs, pay off your mortgage, and use the remaining funds to purchase your next home. In case the value of your home is less than what you owe to the lender, you can consider a short sale as an alternative. While a short sale can have a negative effect on your credit score, it’s still a better option than foreclosure.
You can also rent your property to use the rental income to catch up on your reimbursements. However, renting your home may require other living arrangements for you and your family.
Consider Bankruptcy As A Last Resort
Bankruptcy is something you might consider if you’re out of options. It won’t solve the problem forever, but it might give you some time. An automatic stay is imposed immediately after filing for Chapter 7 or Chapter 13 bankruptcy, requiring creditors to halt all collection efforts. If you think bankruptcy is the right choice, talk to a lawyer who knows about it. They can help you understand what to do.
Look For Cash Home Buyers
If you decide selling your home is the best option, look for ads that say, “We buy houses as-is in Columbus, GA.” These cash buyers in Columbus can buy your home quickly and give you money to help with your financial problems.