If you have used your home to secure personal loans or have a mortgage, your home is used as collateral. If you cannot pay your loans, your home can be legally repossessed or placed into foreclosure by the lender. The lender Solidcashsolutions can then legally sell your home and evict you in order to recoup the money you owe on the loan. If you have fallen three months behind on your mortgage in most states, the foreclosure process can begin. If you are facing foreclosure, however, there are several things you can do:
Work with the lender to establish a new repayment schedule if you can and try to give your lender advance notice if you will be late on your mortgage payment. Your lender will often be willing to work with you to help you, since the foreclosure process is costly and annoying to the lender as well. Ignoring foreclosure only increases the odds that you will lose your home.
If your mortgage is no longer affordable, try to modify your mortgage or refinance it to make it more affordable. You will have an easier time doing this if you have good credit and equity in your home.
Find a way to save your home
If you cannot refinance and cannot afford your mortgage, you may need to find an alternative way to save your home. You may need to work with an investor, who can purchase some of the equity in your home. Or, you may need to take in a lodger or tenant to earn extra income to pay your mortgage. You may also want to sell other assets in order to save your home.
If you cannot save your home, save your credit rating. Saving your credit rating means that you can at least buy another home. If you cannot save your home, consider selling it before the foreclosure date if you have some equity in the property. Use the proceeds to purchase a smaller home or start over with renting.