If you find yourself facing a foreclosure on your home in Covington, Louisiana, don’t despair yet – you still have options.
Of course, the best course of action would be to fully pay back your mortgage and keep your house.
But that’s not often possible. You may have lost your job, experienced a medical crisis, or faced some other sort of financial catastrophe. If you don’t have the funds or resources to immediately make all necessary payments on your house, keep reading.
Here are five courses of action you can take if your house in
Covington, Louisiana is facing foreclosure, and you’re unable to pay back your mortgage:
Negotiate a New Deal with Your Lender
Before foreclosure sets in, you may be able to work out a new deal with your lender to pay back your mortgage. For example, you may be able to make smaller payments over a longer period of time, or be able to put a temporary pause on payments. Approach your lender to ask about options.
If this solution sounds intimidating to you, consider the fact that your lender doesn’t want to foreclose on your home. Lenders want happy customers who can pay back their debt!
File for Bankruptcy
Filing for bankruptcy is never ideal, but it will allow you to prevent foreclosure from happening. Bankruptcy indicates to all of your creditors that you are unable to pay them back.
However, this is not recommended. Bankruptcy can affect your life more dramatically than a foreclosure can, by staying on your credit score for many years and affecting your ability to buy a new car or home, or even get a job.
Give your Deed in Lieu of Foreclosure.
A third option would be a deed in lieu, which is when you hand the deed of the house over to the bank in exchange for avoiding foreclosure.
Typically, this will only work if the value of your house is equivalent to the amount owing on the mortgage. Otherwise, the bank may pursue action to get the difference in value.
Pursue a Forbearance
A forbearance program can help you hold off the foreclosure process for a grace period, during which you will make reduced payments, or no payments at all. When the period ends, you will be responsible for paying back everything you owe on your mortgage.
This can be a good solution if you have the financial means to eventually pay off your mortgage, given a little time. But if you are strapped for cash and in a financial crisis, a forbearance program may not help you.
Sell your Home
The fastest way to get out of foreclosure is simply to sell your home quickly. This is also called a “short sale.” A short sale is an ideal solution because it puts you in control of the process and allows you to pay back your mortgage quickly.
A short sale also enables you to avoid the destructive consequences of foreclosure, like damage to your credit score, tax complications, and difficulty purchasing another home in the future.
Selling your Covington home quickly to avoid foreclosure may be easier than you think. You don’t have to put your house on the market – you can sell your house to a professional home buyer, enabling you to sell your home quickly and efficiently.
Of course, you’ll still have to find a new home – but you will be able to put an end to the stress and hardship that a foreclosure brings.
If you’re facing foreclosure in Covington, Louisiana, we’d love to talk to you about selling your home. We buy homes in Covington, and can help you get out of foreclosure fast. If you have any questions, contact us.