With COVID-19 wreaking havoc on the economy, many people in Baton Rouge] are struggling to make their mortgage payments. It doesn’t look like that will change, even as things begin to go back to normal.
If you are having trouble keeping up with your monthly payments or are underwater on your home due to the declining real estate market, you may be afraid that your mortgage provider will foreclose. Thankfully, there are a few things you can do to avoid foreclosure in Baton Rouge. Taking action quickly is the most important thing, and could save your credit rating and your home.
So lets dive in on a couple quick tips on possibly how to avoid foreclosure in Baton Rouge.
The Keys of How To Avoid Foreclosure in Baton Rouge Don’t Abandon Ship
Many people simply give up and walk away from their home. There are even areas of Baton Rouge have begun to resemble ghost towns, as the economy has impacted residents significantly. It isn’t as bad as Detroit, and we want to keep it that way.
Foreclosure hanging over your head is a stressful situation, but it is important to keep your wits about you. If it happens, you will have a huge negative hit on your credit score that can keep you from getting a new house for up to seven years! If you sell your home, you need to make sure you cover everything you owe or the lender can sue you for the difference in the amounts.
While it’s extremely stressful, you do have options:
• Negotiate with your mortgage lender. Bankers and mortgage lenders are people too, and know that citizens of Baton Rouge are struggling. If you still haven’t missed any payments, banks are more likely to work with you on the terms of your loans (but you have to be planning ahead for this to work). Banks don’t like foreclosing on homes because it is expensive and time consuming, so many will work with you if you aren’t too far behind. You could negotiate forbearance (paused payments that get added to the end of your loan after a period of time), or even a full loan modification (changing terms like extending the loan period so the payments are smaller).
• Ask for help from Uncle Sam. The federal government recently started a few programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current (making all payments) on their mortgage payments refinance an adjustable rate mortgage (if you have one) into a low-interest, fixed rate loan. Not everyone qualifies for these programs though, so you will have to check to see if you are eligible.
We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Baton Rouge are going through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure. Connect with us today and lets discuss your situation. We don’t charge any fees, we’ll evaluate your situation, and present you your options so you can move forward and get this foreclosure behind you.