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Are you in a Financial Crisis? 3 Options to Help Stop Foreclosure


paperfree Aditi Bansal

Updated on Tuesday, June 20, 2017

In case you have received an official letter from your financier indicating that the entire mortgage is past due, then it can be very overwhelming to try and stop a foreclosure. You may have already started to trust that there is nothing much that can be done to help you when you’re in such a situation. Although such a situation can feel depressing, you have some alternatives that can help stop the foreclosure and to save you from bad credit.

tags  #Commercial Hard Money Loans  #Loan Modification #

 

Commercial Hard Money Loans

Accessing commercial hard money loans is an option that you should consider using to stop foreclosure. Most people aren’t familiar with commercial hard money loans because they are a bit different from conventional loans. Commercial hard money loans often have higher interest rates and unfavorable terms. However, you will still have the chance to retain your home. Keep in mind that this should be the last option.

You will most likely qualify to get funding from commercial hard money loans lenders in case your property is considered to have some substantial value. This means that if it’s old, run down, and needs an expensive repair, you may not qualify for commercial hard money loans. In most cases, commercial hard money loans lenders structure their loans depending on whether they can get back their money if they have to foreclose. These lenders work with commercial hard money loans borrowers that are in financial crisis. Therefore, foreclosure is more likely to occur. Although commercial hard money loans aren’t ideal, they can help you avoid the impending foreclosure.

Loan Modification

Even when your bank has made you believe that they will foreclose your property, usually they will still be willing to work with you. Therefore, ensure that you speak to a representative from your bank. They can modify your mortgage and include favorable terms that can benefit you. Sometimes you can also negotiate with your bank for them to lower the interest rates, payment, or even change the repayment agreement by restructuring old balances.

Consider Short Selling

Instead of letting your bank to foreclose your property, you can request that they short sell your home. Although this can lead to your home being sold for an amount that is less than the loan you owe your bank, doing this can avoid a foreclosure away from your record.

You can also avoid foreclosure by using your 401(K) funds.



This page with a focus on Commercial Hard Money Loans, Loan Modification was shared by Aditi Bansal.

 
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