The nation’s homeowners are still reeling from the housing crisis that overtook the U.S. back in 2008. Six years later, the effects are still being felt as homeowners continue to face foreclosure in some of the hardest hit states in the country such as Michigan, Ohio, and others in the Midwest. What can one do if faced with the threat of foreclosure? Fortunately, there are several options available.
Contact Your Lender
Homeowners who are having trouble making their payments should call their lender as soon as possible. You do not want to have to go through the foreclosure process and, believe it or not, neither does your lender. It is a time-consuming, lengthy process that costs your lender a lot of money in legal fees. To avoid foreclosure, your lender may be willing to work out some sort of deal to keep you in your home. That may mean a modification to your existing loan or a new mortgage altogether.
Find A Private Investor
If you have ever seen signs or ads that say “We Buy Homes,” the person or persons behind the sign are normally real estate investors. They will buy your home and, in essence, become the bank. They will work with you, the homeowner, to come up with a flexible payment program so that you may stay in your home. A private investor is more interested in monthly cash flow and the potential for future profit. Finding the right investor can help a homeowner avoid going through the foreclosure process and having to vacate a home.
Other Loan Programs
There are a variety of other loan programs that are available even to those with less than stellar credit. Those who have a job and a steady source of income can take out a payday loan. These are short-term loans that can provide a quick source of cash to make a mortgage payment or two and hold off a foreclosure. Another option is a car title loan. Car title loans from companies such as Embassy Loans of Florida do not rely on credit. If a person owns a vehicle with a clear title, he or she can use it as collateral to access cash. Ultimately, these types of loans can buy some more time in the foreclosure process while a more permanent solution is worked out.
For those facing foreclosure, there are options. If you really want to stay in your home, contact your lender first. If your lender cannot help you, remember that there are other alternatives available.