If you are facing foreclosure proceedings, you have likely been struggling financially for a significant period. Generally speaking, mortgage lenders would prefer to avoid foreclosure proceedings, but they initiate them as a last resort when they believe that it is the only way they will get back at least some of what they are owed.
Therefore, when worrying about foreclosure and feeling intimidated by your lender, it is important to remember that there are many ways that you can work with your lender to find a solution that is in everyone’s favor. The following are some of the most common ways that people prevent foreclosure.
Ask for a change in the loan interest rate
If you are struggling to pay your mortgage because of the high-interest rate or repayment obligations that you are subject to, you should start by requesting a change in these rates.
Ask for a forbearance
Banks will sometimes offer debtors a vacation from paying their mortgage if they are going through a financially difficult time. This is known as forbearance.
Request that all late fees and penalties are eliminated
If you previously went through financial difficulties but have since recovered, you may be able to afford your mortgage repayments but feel crippled by the late fees and penalties that you still owe. If you speak to your bank about this and explain how the penalties could cause you further financial hardship, they may be willing to eliminate or reduce them.
If you are worried about the possibility of losing your home to foreclosure proceedings, it is important to take swift action and protect your home.