All You Need to Know About Foreclosure Prevention

Owning a home is gratifying but can also be stressful. Making payments can be tough if you’ve lost your job or had other financial troubles. Many homeowners are forced to go through the foreclosure process as a result of economic downturns, bad luck or poor money management. Foreclosure isn’t only emotionally difficult; it takes its toll on your credit, too. If you’re worried about foreclosure, you may be able to prevent or delay it by taking certain precautions.

Don’t Ignore Foreclosure Notices

Refusing to acknowledge that you’re in trouble with your mortgage only brings foreclosure closer. Talk to your lending company about your situation. By communicating with your lender as soon as possible, your lender might be able to try and help you keep your home. Lenders would rather make money on a property than take it away from you. Your lender might allow you to postpone some payments or suspend principle payments so that you only owe interest.

Refinance Your Mortgage

Refinancing can reduce the interest you pay each month and lower your overall monthly payment. Your lender can help you refinance, or you can apply for a loan refinance with a different lender.

What to Do If You Need to Sell Your Home

While not ideal, selling your property might be the best way to avoid foreclosing. The goal, while not always possible, is to make enough from the sale so that you can pay off the loan and eliminate the risk of missing payments. You will also avoid the negative effect of foreclosure on your credit score.

For more tips on preventing foreclosure and managing your mortgage, read GOBankingRates, where you’ll find helpful how-to articles, comparison tools and expert financial advice.

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