While the housing market is rebounding, many people in Phoenix are still struggling to make their mortgage payments.
If you’re underwater on your home or having trouble keeping up with your monthly mortgage payments, it is possible that your mortgage provider is going to foreclose.
There are a number of things that you can do to avoid foreclosure in Phoenix. It’s important to remember that moving quickly is important and could save your credit rating and your home.
Here are a couple quick tips on possibly how to avoid foreclosure in Phoenix with your home.
Preventing Foreclosure in Phoenix: Essential Steps to Save Your Home
Many people simply give up and walk away from their home. There are even areas of Phoenix that have begun to resemble ghost towns, as the economy has impacted residents significantly.
Detroit is a prime example of what can happen when people abandon their homes.
This can be a stressful situation. A foreclosure will have a huge negative impact on your credit score, and likely prevent you from purchasing a home for years to come. If you sell your home, you could leave a portion of the loan unpaid, and the lender could pursue legal action against you for the unpaid portion.
While it’s extremely stressful… You have options:
• Negotiate with your mortgage lender.
Banks and other financial institutions are well aware that homeowners in Phoenix are struggling. If you haven’t missed a payment yet, you may have some leverage to renegotiate the terms of your loan. Banks prefer not to foreclose on homes, and many will work with you. You may be offered forbearance, or even a loan modification.
• Ask for help from the government.
Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments to refinance an adjustable-rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements.
We understand that the possibility of losing your home can be stressful. You aren’t alone. Homeowners all over Phoenix are going through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure… connect with us today and let’s discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present your options to you so you can move forward and get this foreclosure behind you.
In addition to the above steps, consider these further actions on How to Avoid Foreclosure in Phoenix
- Seek Professional Counseling: There are numerous non-profit organizations that offer free or low-cost counseling services to homeowners facing foreclosure. These counselors can help you understand your options and work with your lender on your behalf.
- Rent Out Your Property: If you’re struggling to make mortgage payments, consider renting out a portion of your home or the entire property. This can provide you with additional income to cover your mortgage payments.
- Sell Your Home: If keeping your home is not feasible, selling it might be the best option. By selling your home, you can pay off your mortgage and avoid foreclosure. In some cases, you might even be able to negotiate a short sale with your lender, where the lender agrees to accept less than the amount owed on the mortgage.
- Refinance Your Mortgage: If you have equity in your home, refinancing your mortgage could lower your monthly payments and make them more manageable. This option is particularly useful if you can secure a lower interest rate.
- File for Bankruptcy: While this should be considered a last resort, filing for bankruptcy can temporarily halt the foreclosure process and give you time to reorganize your finances. Consult with a bankruptcy attorney to understand the implications and whether this option is suitable for your situation.
- Explore Local Assistance Programs: In addition to federal programs, there are local and state assistance programs available in Phoenix that can provide financial aid or other resources to help you avoid foreclosure. Research and reach out to these programs to see if you qualify for any additional support.
- Consider a Deed in Lieu of Foreclosure: A deed in lieu of foreclosure is an agreement where you voluntarily transfer the ownership of your home to the lender in exchange for the cancellation of your mortgage debt. This option can be less damaging to your credit score than a foreclosure and can help you avoid the lengthy and stressful foreclosure process.
- Communicate with Your Lender: Open and honest communication with your lender is crucial. Keep them informed about your financial situation and any difficulties you are facing. Lenders may be more willing to work with you if they understand your circumstances and see that you are making an effort to resolve the issue.
- Create a Budget and Cut Expenses: Take a close look at your finances and create a budget to identify areas where you can cut expenses. Reducing unnecessary spending can free up more money to put towards your mortgage payments and help you stay on track.
- Seek Legal Advice: If you are facing foreclosure, it may be beneficial to seek legal advice from an attorney who specializes in foreclosure and real estate law. They can provide you with guidance on your rights and options and help you navigate the legal aspects of the foreclosure process.
Remember, the key to avoiding foreclosure is to act quickly and explore all available options. The sooner you address the issue, the more likely you are to find a solution that works for you. Don’t hesitate to reach out for help and take advantage of the resources available to you.
We may be able to help you avoid foreclosure… connect with us today and let’s discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present your options to you so you can move forward and get this foreclosure behind you. Give us a call anytime at (480) 637-5500 or fill out the form on this website today!