In this economy, a lot
of Indianapolis real estate investors are having trouble fending off the threat
of foreclosure. While this might be great news for prospective buyers looking
to get a good deal out of investment properties, this spells difficulty for
current owners. These are just a few basic ways to help you understand what to
do in case that fear starts to creep up and you are determined to keep your
property with you.
Understand first that
you need to keep in constant communication with your lender. Mortgage companies
and other financial institutions don't necessarily want to take the property
back. It's quite the opposite, actually: these financial institutions would
rather have you pay back the loans and let you keep the property. It would be
wise to contact them immediately if you feel that you won't be able to make the
payment. Not only will the lender offer you options, but it would also avoid
hurting your credit score for your future real estate investments in
Indianapolis.
You can ask the lender
for forbearance, which is an agreement between lender and borrower to keep a
foreclosure at bay. Again, you have to contact your lender before missing a
payment, although it is not totally impossible for lenders to allow forbearance
even after getting the notice of default.
More often than not,
upon agreeing to forbearance lenders would ask you to agree to a repayment plan
for the missed mortgage payment. Usually, lenders would add a certain amount to
your next months to make up for the missed payment. This is particularly good
if you are definite that you have more income before the next payment.
However, if times really
are tough, then you might want to ask for a loan remodification from your
lender. Asking for a remodification can potentially lower your mortgage
payments to something you can afford on a regular basis, although payment terms
will definitely be extended. This might take some time though, as lenders need
to determine if you are having financial difficulty and at the same time if you
can afford the remodification.
Another typical way you
can fend off foreclosure is knowing that you can refinance your home loan. If
you are stuck with particularly high interest rates, then asking another lender
can help you make those missed payments by including them in the new loan. This
also allows you to restudy your financing options and allow you to look at
longer terms you can afford much easier.
Filing for bankruptcy
will also delay the foreclosure process, if only temporarily. Doing so could
give you just enough time to refinance your property (if you are determined to
hang on to it) or possibly put it out on the market. You might need the advice
of both a reliable Indianapolis realtor and a lawyer to go through with this
process, but it could pay off in the end.
The short sale could be
your last resort to avoid a foreclosure if you see no other way to remedy your
mortgage problems. A lot of real estate investors also go for this option if
they want to avoid having any record of bankruptcy.
These are just a few of
the most basic ways to keep your home away from a foreclosure. The most
imperative thing you should do really is to contact a reliable Indianapolisrealtor to help remedy your financing troubles and he will surely point you in
the right direction.
If you need any help with buying, selling or renting a home in Indianapolis,Indiana please contact me at any time at jim@bardesrealty.com or you can visit http://www.expertzoo.com/indianapolis-real-estate.aspx
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