Dealing with foreclosure? Here Are Your 3 Options

Investing in a property is a crucial decision everyone can make, you have to be responsible
for settling the payment on time. Failure to comply even in just a few missed payments,
there are corresponding penalty fees and consequences.

The first thing you should do to avoid foreclosure is to reach out to the mortgage lender.
Make time to set an appointment with them to figure out possible ways to prevent
foreclosure, because you already have few missed payments on the record. Some mortgage
lenders will definitely agree to offer some leeway but with penalty fee whichever is higher.

Fortunately, as soon as possible you can discuss to them your financial problem, other
mortgage lenders might understand and be willing to accept partial payments.

The second option you have is to declare bankruptcy, doing so if the process of foreclosure
begins, it can help to halt the process. It means, declaring bankruptcy will stop the
mortgage lender for a while in bothering you as well as to get your investment. In this way,
the lender cannot proceed until such time that your case is over, that’s the only time the
court will release permission to “lift the stay” towards the lender.

Moreover, you still have to pay your outstanding loan after you declare bankruptcy.
Though it allows you to have some time saving up to settle the payment, it also affects your
credit score.

The last option you can do is to find an investor and sell your investment. If you don’t want
to deal with the different impacts of declaring bankruptcy to your credit score, future
employment and loan applications. There are investors who buy houses as is without the
need to renovate the house and fix the damages, they can immediately provide cash offer.

We know investing is good, as we have become prepared for the future and the sake of our
children. But, if you don’t know how to manage your investment well, you will lose it. Think
before you invest.

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