5 Effective Ways To Avoid Foreclosure
If you live in Peoria Illinois and can’t keep up with your mortgage payment, you’re at risk of having your home foreclosed. The good news is, you can save your property and avoid foreclosure. In this article, you will find 5 effective tactics to help you avoid foreclosure in Peoria Illinois.
Lower Your Monthly Payments
Refinancing means lowering your monthly payments if you can’t keep up with them. You have a chance to lower your monthly payments by up to $1,000, which is a lot if you think long term. According to HUD data, you can use the Home Affordable Modification Program to refinance and reduce your monthly payments by up to 40%. You can also consider Principal Reduction Alternative and Second Lien Modification Program to refinance your mortgage.
Talk To Your Lender about Your Situation
Your lender is interested in your monthly payments as well, so he might be willing to help you with mortgages. Lenders often have options to go through in your situation, so always contact them and explain your problems. Doing so is better than doing nothing and waiting until a lender starts the foreclosure process to talk about your situation.
Speak to a Housing Counselor
You can use these programs to arrange a meeting with a housing counselor in Peoria Illinois. They will analyze your situation and your finances and give advice on legal options. They can also guide you through all refinancing steps and help you modify your payments if it can help you save your property and keep you financially stable. Call your Office of Housing Counseling to find out more about foreclosure avoidance. You can also find Foreclosure Avoidance Counselors online to see which one is near your home.
Enroll in Unemployment Assistance Programs
There are lots of programs for unemployed homeowners that you can use to help you go through financial difficulties and avoid foreclosure. For example, you can enroll in a Home Affordable Unemployment Program that allows you to suspend your mortgage for 12 or more months while you search for a job and improve your financial situation. You might also be eligible for the Special Forbearance and count on a longer forbearance period.
File Chapter 13 Bankruptcy
If you are in a huge debt and don’t have any money for monthly payments, Chapter 13 Bankruptcy can save you. Even though this will lower your credit score and you might have problems with applying for a loan, you will get time to improve your financial situation. Moreover, you will be able to keep your property, manage your other debts, get back on track with your current payments and have up to five years to solve problems with tax payments. However, due to negative consequences, consider this option only when nothing else works.
Even though you’re in a tough financial situation, no one will ask you to leave your home right now. You can avoid foreclosure by talking to your lender, refinancing your mortgage and using special programs for unemployed homeowners.