Struggling to Meet Your Mortgage Repayments? How to Avoid Foreclosure in Blaine

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July 30th, 2014

blaineStruggling to Meet Your Mortgage Repayments? How to Avoid Foreclosure in Blaine

If you are struggling to make your mortgage repayments due to escalating interest rates, a job loss or other unforeseen circumstance you may think that foreclosure is your only option. Foreclosure can not only cost you your home, it can affect your credit score and lead to further financial difficulties. Fortunately, foreclosure isn’t inevitable, even if your home is worth less than your mortgage. If you know how to avoid foreclosure in Blaine you may be able to save yourself a lot of stress and difficulties in the future.

What is a short sale?

If you have exhausted your refinancing options and your lender informs you that they are going to start foreclosure proceedings, in some cases you may be able to negotiate a short sale.

A short sale is when you sell your home to a third party, not the lender, and the proceeds go towards paying off your mortgage. Any difference is either repaid by you or in some cases it can be forgiven by the lender which means you won’t need to pay it back.

What are the benefits of a short sale?

A short sale can help preserve your credit score so you can keep your credit cards and get finance in the future when things pick up for you. Being declared bankrupt and having a foreclosure on your financial records can make it very difficult for you to get back on your feet financially.

Although a short sale could still show up on your credit record, along with any mortgage payments you were behind on before the sale took place, the impact is likely to be much less than a foreclosure.

How can I get a short sale completed as fast as possible?

Short sales are more complex than standard sales transactions as they require approval from your lender before they can go ahead. Speaking to a real estate agent who has experience in this area can help you learn how to avoid foreclosure in Blaine through a short sale.

Also Read: How can a real estate agent help me sell my house fast in Blaine?