What Are the Best Strategies to Avoid Bay Area Foreclosures?
Let’s discuss a few strategies to avoid Bay area foreclosures. When faced with foreclosure, people give up. Either the situation is complicated, or they don’t understand their options. Selling your home is not the only way to avoid Bay area foreclosures. Real estate professionals can assess your situation to avoid Bay area foreclosures in San Francisco.
5 Strategies to Avoid Bay Area Foreclosures
Pay Your Mortgage
All types of foreclosures and short sales will seriously damage your credit history. The best option is to avoid foreclosure at all costs. It is acceptable to be late with a few mortgage payments, but it doesn’t have to end in a foreclosure. You can catch up with late payments.The loan can be reinstated if you can pay all the missed payments with a late-payment fine. The payment is all due in one voucher, but you can negotiate with the company to get some time to cover late fees.
Sell Your Property
A foreclosed home will pay less, but you can sell the property before the bank forces a foreclosure. If you have equity in the home, you can sell it to pay the loan. You don’t have to sell the property in a week. Even after the foreclosure, you can get 1-6 months to sell the property. Use this timeline to evaluate good offers and sell your home for the maximum profit. Don’t sell your home at the lowest price.
Govt. Programs
Govt. organizations offer different programs to help homeowners avoid Bay area foreclosures. Please contact us for more details. We’ll assess your situation to find a better solution. Two best programs are Home Affordable Modification program and the Second Lien Modification program. The goal of these programs is to modify the mortgage terms to help you realize your dream of homeownership. You must take action before it is too late. The officers will assess your financial problems. Sometimes the loan duration is extended to 40 years. Other times, the lender will charge less interest rate to reduce the mortgage loan.
Short Sale 
The short sale is a valid choice, but it should be your last option. A home is sold short when the appraised home value is less than the combined cost of closing fees and commission. Let’s say a property is worth $800,000, but the homeowner owes $920,000 on this property. The owner is unable to pay back the mortgage, and the property will either be sold at a discount or we’ll move in the foreclosure department.
As a homeowner, you have to discuss this strategy with the lender. The lender will decide whether or not it is profitable to pursue a short sale.
Power of Pessimism
Optimism is a great tool, but the power of pessimism is also a great strategy to avoid foreclosure on your home.
Fear of failure is always higher than the “tragedy” itself. Have a plan B if the plan A doesn’t work. Don’t panic. Your brain can create a plan a B if you can avoid facing unnecessary emotional burden. Use the power of pessimism to your advantage. Write down your worst scenario. What’ll happen if your home is foreclosed by the bank?
Visualize clearly and accept the worst case scenario. Now explain, how you’ll get out of this situation. That is your plan B!
Most people become frustrated at the thought of a foreclosure. Don’t do that. There are a million ways to finance your home to avoid foreclosure and we just discussed a few strategies.
Feel free to contact us for any questions or queries.