With the housing market still recovering from 2008, there are still a lot of people in Los Angeles that are still struggling to pay their monthly mortgage.
If you’re house is underwater or you’re having a hard time to keep up with the mortgage, you might have the fear that your property is headed for foreclosure.
The good news is that there’s plenty you are able to do to avoid foreclosure in Los Angeles. You should always remember that moving is an option and it is paramount in order to prevent your credit score from driving into the ground.
So look at a few possibilities for how you can avoid foreclosure in Los Angeles and save your home.
The Key To Avoid Foreclosure In Los Angeles Is Not To Abandon Ship
Some people start to get overwhelmed by the process so they just give up and move out of the house. There are areas in parts of California and other places in the US that have started to look like a ghost town after the economy did some damage to it’s residents.
Detroit being a perfect example – tons of people just got up and left and just abandoned their houses.
Foreclosure is definitely a stressful circumstance, but you need to keep your wits and deal with the situation head on. Not only will a foreclosure negatively impact your credit, it will make it very hard to buy another house later down the line in the coming years. Even if you owe more than your house is worth, oftentimes the lender will let you pay a portion of the loan and might forgive the rest in order to avoid foreclosure in Los Angeles, that’s why it’s important to discuss with your bank.
Even though it’s stressful, you have some options:
• Try negotiating with your bank. Mortgage lenders are well aware that there are people in Los Angeles who are struggling. Whether your already behind on your payment or if your only starting to get behind, you do have some leverage to negotiate. You see, the bank doesn’t actually want to foreclose on you – they stand to make more money by keeping you in the loan. So look at your options to either refinance, get a loan modification or even a forbearance in order to avoid foreclosure in Los Angeles.
• Get help from the government. Since the crash in 2008, the government has started to implement a number of different programs in hopes of helping homeowners who are struggling. The Home Affordable Modification Program (HAMP) allows homeowners who are struggling to modify their home loans, which ends up reducing their monthly payment. HAMP has two programs:
- To help homeowners who are current with their payments to refinance out of an adjustable rate mortgage(ARM) and into a fixed rate loan with low interest.
- To help homeowners who are already behind to get the amount that is behind forgiven.
There are eligibility requirements for both programs.
We know that the chance of having your house foreclosed on can be an emotional and stressful time, but know that you are not alone. There are folks all over Los Angeles who are experiencing similar worries. But do not let that discourage you, let it cause you to start taking some serious action to avoid foreclosure in Los Angeles so that you can either remain in your home or sell it, and restore your credit score.
We might also be able to help you avoid foreclosure in Los Angeles… you can connect with us today and we can have a talk about your situation and how we can help. There are never any fees to work with us. We’ll evaluate your particular situation and then go over your options so you can decide what the best move is going forward for you to leave this foreclosure behind and more towards the good times that are surely ahead!