While the housing market is rebounding, many people in Kansas City] are still struggling to make their mortgage payments.
If you’re having trouble catching up or making your mortgage payments, you may be worried that your lender is going to foreclose on your home.
Thankfully, there are a number of things that you can do to avoid foreclosure in Kansas City. You MUST move quickly though. Time is not on your side. You still have options, but you need to be proactive in order to preserve your money and your credit.
So let’s dive in on a couple of quick tips on possibly how to avoid foreclosure in Kansas City with your home.
The Keys of How To Avoid Foreclosure in Kansas City Don’t Abandon Ship
Surprisingly, a lot of people simply give in and give up their home to the bank when they get a notice of foreclosure. There are even areas of Kansas City 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.
Foreclosure can be really stressful. But you don’t want to have that on your credit report. It will tank your credit score and can prevent you from getting another home for many years. 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 do have options:
• Negotiate with your mortgage lender. Banks and other financial institutions are well aware that citizens of Kansas City are struggling. No matter how far behind you are, there are government and lender programs to assist you right now. Contrary to popular opinion, banks don’t enjoy owning homes and don’t like foreclosing on them, and many will work with you if you aren’t too far behind. Banks like to own debt, not properties. You may be offered forbearance or even a full loan modification.
• Obtain a HELOC to provide temporary funding. Banks, especially community and local banks will lend you money using the equity in your home as collateral. If you’re cash crunch is predicted to be temporary, you may want to consider a home equity line of credit (HELOC) to get you by until you can get your finances in order again. The interest rates are generally fairly low, and the money can be taken out easily the same as cash. For more information on HELOCs, Money.com has a great article detailing HELOCS and the best currently available in 2020!
• Ask for help from Uncle Sam. 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 refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements.
Believe us that we understand the pain and stress that you’re under when facing a foreclosure. It’s important to know that you aren’t alone. Citizens all over Kansas City 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 you your options so you can move forward and get this foreclosure behind you.