7 Steps to Rescue Your Home From Foreclosure After the Pandemic

Foreclosure has been on the rise in Los Angeles, California due to the COVID-19 pandemic but what really is foreclosure? The Foreclosure proceedings is a legal process, which the lender attempts to recover an outstanding balance loan from a borrower. Foreclosure to your dwelling is a horrifying nightmare that everyone should avoid. And if the sale of your home doesn’t cover your loan balance, you may end up paying more money than you have.

1. Pay Back Your Fees and Debt in Large Lumps Sum

Reinstatement lets you pay back the amount as a lump sum payment that could include interest and penalty charges. This must be paid before a specific date. You can reinstate your installments if you fall back on your mortgage payments.

2. You Need To Make Your Payments Your Top Priority

Prioritize your debt accordingly. Personal loans, credit card bills, and other financial debts can take a back seat until you pay off your mortgage amount completely.

3. Be Smart and Try to Negotiate the Interest Rate

Foreclosure can be expensive on your lender, so contact your bank first, and try to negotiate the interest rate. It is easier for any lender if you make payments for the property, rather than dragging this problem to court and selling the property again.

4. Beware of Foreclosure Scams

Swindlers may try to cash in on your situation especially in Los Angeles, California according to the Local Records Office. But, don’t let them prey on the desperate. They may promise to choose you up from the few, but do not sign over the deed to your residence. Foreclosure scams have been a problem in real estate for many years.

5. Try Extending the Mortgage Loan Plan

Try and revise your mortgage loan plan or negotiate to restructure the mortgage plan. You can extend the idea of the loan, spreading it over a few years. You will have enough time on your hands to pay the mortgage loan.

6. Make Sure to Get Receipts and Copies of All the Forms

It is always safe to offer the terms of an offer written as it acts as a new testament, and will be safer to verify later if required. As a part of the loan omitted, this can reduce your distress.

7. Apply for Special Forbearance

An unexpected occurrence being a medical emergency, or a decrease in income may come when it comes to making payments on time. In these cases, your lender may consent to your repayment where you will in the short term owe lower payments, or you will see a short-term pause on your payments.

According to the Local Records Office, foreclosure problems need to be tackled all at once, or it could be disastrous. Saving your home is not any walk in the park. Thus, consider all your options, and make wise decisions to prevent property foreclosure.