The answer is YES! (but with caveats, read below for more details)
Alternatives to a Costly Foreclosure
If you’re aiming to avoid foreclosure, a great first step is reaching out to your lender right away to discuss potential options.
Acting quickly before missing multiple mortgage payments can often help prevent foreclosure. If you know you’re about to fall behind, contact your lender as soon as possible to discuss your financial situation. Mortgage companies typically prefer finding a solution over going through the foreclosure process, as it helps them avoid losses.
Honest communication is key. Your lender may agree to modify your loan by adjusting your interest rate, which can lower your monthly payment. Even if you’ve missed a few payments, some lenders allow you to add them back to your loan once you’re able to resume payments. However, you must be proactive in explaining your situation and requesting help to make this possible.
Prioritizing Mortgage Payments Over Other Bills
Avoiding foreclosure often means making mortgage payments a priority over other bills, like credit cards. While it may be tempting to keep credit accounts current, your home loan should come first, as the consequences of falling behind are much more severe for your credit score and overall financial health.
Falling behind on credit cards won’t impact your credit nearly as much as mortgage payment delays. Additionally, missed mortgage payments can eventually make it harder to pay other bills, so it’s essential to put your home loan at the top of your payment list
Considering a Sale to Avoid Foreclosure
One strategy to avoid foreclosure is selling your property and using the proceeds to pay off your mortgage. By selling your home, you may be able to settle your loan and potentially have money left over to make a fresh start. This option can prevent foreclosure and protect your credit from the severe impacts of a foreclosure process.
You can also cut back on expenses to stay on top of your payments. For example, if you’re self-employed, consider setting up a home office to save on rent or even consider reducing transportation costs by sharing a vehicle.
With the right steps, you can take control and protect your credit while preventing foreclosure.
Interested in Selling to Avoid Foreclosure? Gulf Coast Home Buyers Can Help!
At Gulf Coast Home Buyers, we purchase homes in Fort Walton Beach, FL, and nearby areas. We may be able to help you out of your current situation and help you avoid foreclosure.
Here’s how our process works:
- Fill out the form over here, or call us at (850) 972-0550 and we’ll make you an offer within 24 hours
- If you accept the offer we’ll get the documents drawn up and come out and visit you in your home to go over the paperwork
- We buy your house when you want us to (in as little as 30 days) at a reputable local closing agent
That’s it!