Has financial distress caused you to fall behind on your mortgage payments? If so, your lender is legally able to take back the property, i.e. foreclose. This can be a nightmare, especially if you have a family to worry about. The good news, however, is that there are some things you can do to prevent foreclosure in Philadelphia.
1. Mortgage Modification
Check with your lender to see if there’s anything they can do to help. They may not ask for payments for a few months, or they may reduce how much you need to pay each month. What they can do is largely based on your income and general financial situation. Lenders can usually modify their loans for six months to a year. To get a modification, you must produce proof that shows you can meet the terms of the new payment plan.
2. Selling The Property
If you can’t afford to pay your mortgage, consider selling your house to make a profit. You won’t have to go through foreclosure and you’ll avoid getting a black mark on your credit report. If you’ve thought “I need to sell my house fast in Philadelphia to prevent foreclosure,” you should reach out to cash home buyers.
3. Rent It Out
If your income is down, renting out your home can help you avoid foreclosure. Just make sure having a tenant doesn’t disrupt your life too much. After all, they could damage your home or cause routine headaches. But if you find a good tenant, you can use their rent money to pay off your mortgage, ensuring there’s a roof over both your heads.
4. Short Sale
You can voluntarily surrender your property to the lender if you have no other option. You do this if you don’t qualify for any other options or your attempts to sell a house fast in Philadelphia before foreclosure have failed. Even though this method does not prevent you from getting kicked out, it will protect your credit score. You won’t profit from the sale, but your credit score will be intact.
If your home is nearing foreclosure, consider the tips discussed above. Your lender may be able to help you out if you reach out to them promptly and inform them of your situation. But if your financial stability seems uncertain, consider selling your home to cash home buyers in Philadelphia. This way you can generate some money from the sale.
At Diamond Equity Investments, we buy houses in Philadelphia as is and for cash. We promise a hassle-free sale, and we can close in under 30 days. Does your home have liens against it? No problem! We’ll still buy it. Call us today to avoid foreclosure!