Many people in Baltimore] are struggling to make their mortgage payments. The housing market in many areas has seen a recent increase in foreclosure rates.
If you’re underwater on your home (owe more than your house is currently worth), or are having trouble keeping up with your mortgage payments each month, you could be facing the possibility of foreclosure in the near future..
Thankfully, there are a number of things that you can do to avoid foreclosure in Baltimore. It’s important to remember that moving quickly is extremely important. Doing so will likely lead to minimal damage to your credit score and may allow you to keep your home.
So let’s review a few options on how to avoid foreclosure in Baltimore with your home.
The Keys of How To Avoid Foreclosure in Baltimore: Don’t Abandon Ship!
When facing this difficulty, many people feel they have no other option but to walk away from their home and take a significant hit to their credit score. There are several areas throughout America and in Baltimore that are beginning to resemble ghost towns, as the recent economy has negatively impacted residents significantly.
Facing foreclosure is a very stressful situation. A foreclosure will have a negative impact on your credit score, and likely prevent you from purchasing a home for several years to come. Even if you sell your house, if you owe more than they house is worth, your lender could pursue legal action against you in order to collect the unpaid portion.
While foreclosure is an extremely stressful, you do have options!
• Negotiate with your mortgage lender. Banks and other financial institutions are well aware that citizens of Baltimore are struggling. Many individuals are leaving Baltimore and demand for housing in the worst areas of Baltimore is low. Therefore, even if you wanted to sell your house, it may be difficult to find anyone in Baltimore willing to buy your house at a “reasonable” price.
If you are facing financial difficulty and have not yet missed a payment, you may be able to renegotiate the terms of your loan. Banks do not like foreclosing on homes as it is a lengthy process and sometimes costs them money to do so. Therefore, many lenders are willing to work with you when you aren’t too far behind on payments. You might be offered a full loan modification forbearance depending on your unique situation.
• Ask for help from Uncle Sam. Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans which will reduce monthly payments, making it easier for homeowners to pay down their loan each month. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments to refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements at the time of application.
The possibility of losing your home is stressful. Just know that you are not alone. Residents throughout Baltimore are going through the same troubles. There are resources to help you avoid the foreclosure process in Maryland. Foreclosure can have a negative impact on your financial life, so it is important to move quickly in order to take advantage of any options available. Doing so may mean you could remain in your home and save your credit rating.
We may be able to help you avoid foreclosure in Baltimore… connect with us today and lets discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you with different options so you can move forward and get this foreclosure behind you.