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Tuesday 15 January 2019

Guide To Avoiding Foreclosure In Northwest Indiana

By Richard Morris


Buying a home is the dream of tens of millions of Americans. Hundreds of millions of other Americans are currently servicing their mortgages and live in their own homes. Others have settled their mortgage balances and have taken out home loans for one reason or another. Unfortunately, there are homeowners who are facing foreclosure in Northwest Indiana.

Failing to make your mortgage payments accordingly can have serious consequences. For starters, your bank will initiate foreclosure proceedings. The end result of this process is usually loss of not just your home, but also equity, and damage of your credit rating.

When you home has been foreclosed on, your lender will have you listed as a defaulter, so your credit rating will reduce considerably. This will reduce your chances of securing an affordable loan in the future. Buying another home will also be a huge challenge. You may also have a difficult time getting a better job as employers nowadays run credit checks, and they often avoid job applicants with poor credit ratings.

After repossession of your house, your family will have to stay in a hotel or a rental property. You can also stay with friends or relatives, which can be embarrassing. Therefore, it is in your best interest to stop the process. In addition to that, all the equity you might have accumulated over the years will be lost. Therefore, you should do everything you can to stop the process.

If your property is about to be repossessed by the bank, the best option for stopping the process is short-selling the property. This is the process of selling the house at a lower price than it is worth to settle your mortgage balance. The selling price must be lower than the outstanding balance and the lender must approve the process. As you can see, you will lose both your home and equity through this process, but you will avoid getting adversely listed.

If you have missed just a few payments, and think that you cannot make up for the missed payments, you should consider selling the house before it is put on foreclosure listings. By selling early, you can be assured of recovering your equity. You will also prevent the bank from repossessing your home and listing you adversely.

The last option you should consider is declaring bankruptcy. When you have been declared bankruptcy, your mortgage lender will be prevented from repossessing your property. This will give you time to look for funds to make up for missed payments to ensure you are current. This will not only prevent foreclosure, it will also give you a chance to retain your home.

If your monthly mortgage payments have become affordable, you can refinance the loan to improve the terms and conditions. For instance, you can have the repayment period extended to reduce your monthly payments. Reduced monthly installments will boost your chances of successfully servicing your mortgage and avoiding foreclosure.




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