Have you ever imagined selling your Virginia house? It is likely that you’ve already researched its market value, considered making small repairs, and planned every step of the way. However, selling your house is not the only way to get separated from your property.
One of the most undesired ways to say goodbye to a home as a homeowner is via a foreclosure process. Often, house foreclosure arrives unexpectedly and leaves behind stress and uncertainty. You may not only lose your house but could end up owing your lender a large amount of money that you’re not prepared for.
You can stop foreclosure now by learning more about the process itself and the ways you could avoid reaching this stage. We will help you by sharing useful information that can support you in saving your house.
How Does Foreclosure Work in Virginia And How To Avoid It
Understanding House Foreclosure
Foreclosure in Virginia occurs when a homeowner is no longer able to make regular mortgage payments as agreed. As a result, the lender has the right to take repossession of the property, request that the homeowner leaves the house, and sell the property.
The consequences of house foreclosure in Virginia can be long-term. As a homeowner who has gone through foreclosure, your credit applications in the future may be negatively affected. You may not be able to qualify for the credit, leaving you restricted in your next home purchase decision.
Don’t Ignore the Situation
It is essential to pay close attention to your financial situation at all times, especially if you have purchased a house with a mortgage. Unexpected situations may always arise but it is essential to welcome them open-minded and prepared to create new plans to fit the new scenario. If you are experiencing financial difficulty or are expecting changes at work, seek help, and remember to contact your lender.
Keep in Touch With Your Lender
Regularly communicating with your lender can help you resolve the problem without a foreclosure process in Virginia. If you are struggling to make your mortgage payments on time make sure that the first thing you do is reach out to your lender. Share the information about your financial troubles with them and work together to come up with a solution to the problem. Don’t wait until the last minute. Often, your lender may agree to loan modifications if you speak to them early on, before you start missing payments.
Read and Respond To Letters from Your Lender
Don’t ignore letters or emails that you receive from your lender. Despite how busy your lifestyle may be, consider the communication with your lender priority. You will receive notices informing you about the stage that you are at with your mortgage and the rights and alternatives that you have. There may be a solution to your problem but failing to acknowledge it on time may be detrimental.
Know the Foreclosure Laws and Timeframes In Your State
How long is the foreclosure process in your state? What foreclosure laws apply to you and what alternatives do you have?
These are all important questions that deserve your time. For instance, in Virginia, it takes between 60 and 90 days for a non-judicial foreclosure to take place. However, the timeframe is subject to changes resulting from court actions, delays and adjournments of sale, filing for bankruptcy, and more.
Understand Your Mortgage Rights
Every state has its distinctive mortgage rights. Locate your loan documents and read all the information regarding your payments and rights. If necessary, seek the help of professionals who can offer professional guidance and consultations and can inform you about your rights as a homeowner paying a mortgage.
Avoid Foreclosure and Explore Your Alternative to Keep Your Virginia Home!
Learn About Your Foreclosure Prevention Options
There are a number of actions that you can take to prevent having your house for foreclosure. If you’ve ever asked yourself “can I sell my house before foreclosure”, the simple answer is yes. Avante Home Buyers can help you quickly get rid of your house and avoid foreclosure as fast as possible, even without repairs.
Failing to pay your mortgage for two or three months can lead to a pile of unpaid bills and potential house foreclosure. Getting a mortgage reinstatement allows you to restore your loan to its original condition and continue your payment terms according to the normal schedule. If your lender agrees to a reinstatement you may be able to keep your home.
Make Up Your Payments with Special Forbearance
Another way to get temporary relief and prevent house foreclosure is by being granted a special forbearance. Loan forbearance is a form of loss mitigation where the lender reduces or suspends the borrower’s mortgage payments for a certain period of time due to a current financial difficulty.
The bank holds the right to announce foreclosure on the home but agrees to hold back on this right and help the borrower repay the loan in a more convenient way and time.
You must qualify for a special forbearance in order to receive this temporary break from your mortgage payments.
Request for Loan Modification
A loan modification can permanently change the terms originally agreed upon in the promissory note. As a result, the borrower can receive more affordable payment terms on their mortgage. The loan modification is a written agreement and usually decreases the interest rate and extends the loan’s term to make it more convenient for the borrower.
There are certain requirements that apply in order to request a loan modification:
· The property must be your primary residence
· You’ve gone through financial turbulence
· You have proof that you are able to make regular payments
Go for Short Refinance
Under short refinance, the lender refinances the mortgage for a borrower who is unable to currently meet their mortgage payment requirements. The aim of short refinance is for the borrower to receive help and prevent foreclosure.
Use Your Assets to Help Reinstate Your Loan
Consider any options you have for reinstating your home. Use any assets that you can, including cars you own, jewelry, life insurance policy, and others. Think about asking someone from your household to get a second job for extra income or start a freelance job. Although the money acquired from these efforts may not be enough to recover your ability to make your full payments, it demonstrates to your lenders that you are doing everything in your power.
There are instances in life when we lose control of the situation and must quickly adapt. Unexpected circumstances such as divorce, loss of a job, or medical conditions can significantly impact your income. This could lead to an inability to pay your mortgage loan and can cost you your home and other long-term consequences.
You can prevent this from happening. At Avante Homebuyers, we work with you to prevent this from happening. There are a lot of ways to avoid house foreclosure in Virginia. You can keep your home if you know the right things to do firsthand. We hope that this article will help you be better informed and prepared for what you need to do to avoid losing your home in a foreclosure process.