If your home has gone into foreclosure, then the bank that financed your mortgage is attempting to establish the legal right to repossess your property due to a failure or inability to stay up-to-date with your mortgage payments. However, San Antonio residents who cannot pay their home loan bills do not have to end up in foreclosure proceedings. Here are five alternatives.
-- Special forbearance: This involves the negotiation of a new loan repayment plan that fits your current financial abilities This might also involve a temporary secession or reduction in loan payment obligations. Qualifying for a special forbearance usually requires proof of increased living expenses and/or proof of reduced income.
-- Mortgage modification: This involves refinancing or extending the terms of a mortgage. Those who can afford the new mortgage payment amount and have now recovered from a previous financial calamity might qualify for a loan modification like this.
-- Partial claim: This involves qualifying for a one-time payment provided by the FHA-Insurance fund in order to get your mortgage loan current again.
-- Pre-foreclosure sale: This involves getting permissions to sell your property for less than is required to pay the mortgage, but sufficient to avoid foreclosure.
-- Deed-in-lieu of foreclosure: This involves the voluntary return of your home to the lending organization. Although this doesn't save your home, it could save your credit rating.
San Antonio homeowners who would like to explore the above five alternatives to foreclosure can do so by getting in touch with a foreclosure defense attorney. Such a lawyer can examine your situation to determine which of the above options might be suitable given your unique circumstances and needs.
Source: FindLaw, "Alternatives to Foreclosure," accessed Nov. 16, 2016