If faced with foreclosure, you may feel that your days in your home are numbered. You may begin to think that moving out (or being removed) is only a matter of time. While many people never take the steps necessary to save their home from foreclosure, others realize they don’t have to go away without a fight and that there ways to keep the home.
You put yourself in a bad situation by not paying your mortgage. Now, it is time to take the necessary steps to save the home you love.
Believe it or not, mortgage lenders are not interested in foreclosing on your home. They would rather work with you to ensure that you make the necessary payments in the future.
For this reason, the last thing you want to do is run and hide from your lender. Instead, it would be in your best interest to communicate with your lender as often as necessary.
When you show that you are willing to do whatever it takes to save your home, there is a much better chance of finding a solution.
Here are several strategies to consider if faced with foreclosure in Philadelphia:
1. Loan modification. This signifies a permanent change to the terms of your mortgage. This could include but is not limited to an extension to the term of the loan, reduced interest rate, or adding the missed payments to the principal balance.
Note: before you agree to a loan modification, make sure the new terms better your situation and put you in position to make the proper payments in the future. Some modifications contain a provision with a new mortgage payment which may be a lot higher than you can afford.
2. Temporary rate reduction. With a temporary interest rate reduction, your payment will be lowered for a predetermined period of time. During this period, it is the hopes of the lender that you can get your finances back in order.
This is not the best option if you are unable to make the normal payment once the interest rate reduction period expires.
3. Refinance. When you refinance your mortgage, you are in a position to adjust the terms. You may be able to lower the rate as a means of decreasing your payment. Along with this, if you increase your term your payment will also decline.
If you are unfamiliar with these strategies or simply want to discuss your options, contact your mortgage lender for more information.
And remember, hiring an experienced Philadelphia foreclosure defense attorney is also an option. It is always nice to have a knowledgeable professional on your side as you attempt to save your home from foreclosure in Philadelphia. There are more options available if you act sooner rather than later. In addition, If the mortgage company is not willing to work with you, there is always the option of using a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy filing to stop the foreclosure.