Avoiding Foreclosure: How to Keep Your Home in Your Hands

Jaden Ghylin
Jaden Ghylin

Jaden has been working in real estate since 2005. Jaden has a degree in Electrical Engineering and has a talent for helping people work through all sorts of difficult problems — and his passion is real estate. Jaden’s priority is understanding his clients’ unique situations and working together to find win-win real estate solutions that benefit his clients.

Foreclosure is a scary proposition for anyone. The home is where the heart is, and it’s tough for any family to pack up and find a temporary place to stay while you try and get back on your feet.

If you don’t want to ever deal with the bank trying to strip you of your home, then follow these helpful tips to make sure that your home stays in your hands, where it belongs.

Don’t Ignore the Problem

This is one issue that you cannot afford to put off. If you recognize that your home is underwater (that the equity of your home is less than what you owe on the house), then you need to act quickly. Refinancing is a possible option and one that works for many people who find themselves in this situation. Another potential option is to sell your home early before the home’s value falls even more. This is a tough choice to make, but if you believe that you can’t afford the necessary costs going forward, then it is the smart choice to make. A financial advisor can work with you to make the right decision. 

One reason many face foreclosure is due to the loss of a job. If you ever find yourself without work, reach out to your lender immediately and discuss your situation. Despite what you may think, lenders do not want to take your home from you. They’ll work with you to reduce monthly payments until you get back on your feet, or they may even suspend payments altogether.

So, if you ever find yourself in a tough situation, be proactive and don’t be afraid to seek help from a trusted professional.

Understand Your Mortgage Rights

mortgage rights
Courtesy of Credit.com

While hopefully, you have a firm grasp on the details of your mortgage, it’s a good idea to refresh yourself as soon as you see yourself potentially falling into foreclosure territory. Seek out your loan documents and read them thoroughly so you are aware of what may happen if you don’t make your payments.

You can use this helpful resource if you have any questions about your states foreclosure laws and timeframes, which varies state by state.

Budget Wisely

Budgeting smartly in times of financial distress is easier said than done. But even creating a rough outline of a budget can help you understand your finances and the moves that you must make with your money to maximize the amount you can put towards your mortgage. Any monthly memberships or entertainment payments, or other expenses that you can do without should be the first costs you cut.

Take Inventory of Your Assets and Use Them

assets
Courtesy of Dallas Divorce Law blog

Do you own a second car, jewelry, or anything else that you can live without? Selling these assets can help you reinstate your loan. Is there another member of your home who can acquire a job, or a second job, to help bring in additional household income?

While these actions may not increase the overall income in your home by a lot, it will at the very least illustrate to your lender that you are willing to do what it takes to keep your home.

Be wary of Foreclosure Scammers

There are some people out there who will pretend to be someone you can trust and that they can help you avoid foreclosure, but will end up tricking you into becoming a renter in your own home. Check out this list of approved housing counselors courtesy of the Department of Housing and Urban Development. Before signing any legal documents, make sure you speak with an attorney, a real estate professional, or a trusted financial advisor.

Minnesota Home Guys – An Efficient Option

At Minnesota Home Guys, we help people who are nearing foreclosure but don’t want to lose their home for an unfair price. We’ll buy your home from you, for cash, fast and efficiently so you’ll get a fair price for your home, as opposed to having it taken from you.

If you want to sell your home quickly, contact us today and we’ll work with you to avoid foreclosure and get you cash for your home.

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Jaden Ghylin
Jaden Ghylin

Jaden has been working in real estate since 2005. Jaden has a degree in Electrical Engineering and has a talent for helping people work through all sorts of difficult problems — and his passion is real estate. Jaden’s priority is understanding his clients’ unique situations and working together to find win-win real estate solutions that benefit his clients.