Keep My Home California

Keep My Home California

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Are you thinking, I really need to keep my home California? If you are, it probably means you are behind on your mortgage payments and are looking for a solution. We’re here to help!

Of course, the first priority is to try and keep your home. We will provide some words of wisdom so that you may do everything in your power to stay! If those things don’t work, there are still a couple other options to prevent you from severely damaging your credit by going into foreclosure. With that said, here are some good options to consider if you are behind on your mortgage payments:

#1 – Negotiate with your lender

It’s definitely worth it to attempt to cut a deal with your lender. Do it sooner rather than later… ideally before you’ve missed any payments. That way, you won’t be on their naughty list, and you may still be able to get a present! Here are 3 “presents” that you might be able to receive if you haven’t contacted your lender too late:

  • Forbearance: This is when you are able to make a reduced payment, or no payment, for an agreed upon period of time. If you are due to receive a tax refund, a bonus from work, money from the sale of a car, or something of that nature, the lender may be willing to negotiate a forbearance with you. Usually, you will be required to make up the difference at a later time, but it will definitely give you more time to get yourself back on track.
  • Loan Reinstatement: This is when you agree on a new deadline for you to make up your missed payments.
  • Loan Modification: This is when your lender will modify the terms of your loan to lower the monthly payments. It is common that the loan will be stretched out over a longer period of time and the missed payments will just be added to the loan balance. This will lower your monthly payments, but will result in more interest over the life of the loan.

#2 – Apply for a government help program

There are a number of government programs that will assist homeowners who are at risk of foreclosure and/or are struggling with their monthly mortgage payments. Here are two that may help:

  • If you need to modify or refinance your home for lower payments, the Home Affordable Modification Program (HAMP) might be a good program to look into. According to the HUD, “HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.”
  • If you have an “underwater” mortgage, the Home Affordable Refinance Program (HARP) may be a more suitable program for you. An underwater mortgage is when you are “current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined.” If this is true for you, you may be eligible to refinance through HARP. It is designed to help you refinance into a new affordable, more stable mortgage.

The majority of these programs are administered through the U.S. Treasury Department and HUD. For more information about other programs that may be right for you, visit the U.S. Department of Housing and Urban Development website.

#3 – File for bankruptcy

If you file for bankruptcy, it will allow for an “automatic stay” which means that the foreclosure process if legally stopped. This may help you keep your home or, at the very least, get you out from under your mortgage. The foreclosure process can’t be reopened until your bankruptcy case closes or the lender “lifts the stay” (gets the court’s permission to continue the foreclosure process).

#4 – Sell your home by yourself

If none of these options work and you can’t keep your home, you should definitely try to sell it yourself to avoid foreclosure. This will hopefully allow you to pay back what you owe on the house, walk away with a clean slate, and save your credit score from taking a nosedive. If you’re lucky, you may even come out of it with a profit! If you need to sell your home yourself, CLICK HERE for a quick and easy solution and to save yourself from paying thousands of dollars in realtor commissions.

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