If you live in Washington, D.C. and are facing foreclosure, you have a few ways to avoid foreclosure. The economy is showing signs of improvement, yet you may still need help to stop your Washington, D.C. home foreclosure.
If you live in Washington, D.C. and are facing foreclosure, you have a few ways to avoid foreclosure. The economy is showing signs of improvement, yet you may still need help to stop your Washington, D.C. home foreclosure.
Talk to your lender
When you need to stop Washington, D.C. home foreclosure, your first step is to talk to your lender. Lenders do not want to see homes go into foreclosure, because foreclosure is costly and they may end up getting far less from the home's sale than they would if you were able to pay your mortgage. It is in the lender's best interests to try to help you stay in your home. However, you will need to ask for the help. The first step in saving your home from foreclosure is asking your lender to sStop my Washington, D.C. home foreclosure." Many lenders have internal programs for modification and refinance to help save your home.
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Making Home Affordable
When it comes to Washington, D.C. home foreclosure stoppage, you may be able to refinance your mortgages to get lower, more affordable monthly payments. You may be eligible for assistance through the federal government's Making Home Affordable (MHA) program. Under this program, you may be eligible to refinance your mortgage to make it more affordable if you owe more on the home than it is worth because the market value has dropped. You may also be able to get a loan modification that lowers your rate, payment or total principal.
Home Affordable Foreclosure Alternatives
When mortgage modification is not an option, you can apply for a short sale or Deed-in-Lieu (DIL) of foreclosure through the federal Home Affordable Foreclosure Alternatives (HAFA) Program. In a short sale, you sell your home for less than you owe and your lender agrees to take a payoff with a deficiency balance. Under the HAFA program, your lender must also waive the deficiency. You can also give the home back to the bank through a DIL, which is less harmful to your credit than a foreclosure.
Bankruptcy
You may also opt to file Chapter 13 bankruptcy so that you can reorganize your debts and stop your Washington, D.C. home foreclosure. When you file Chapter 13 bankruptcy, all creditors, including your mortgage servicer, are usually ordered to cease attempts to collect a debt. This will allow you, in some instances, to modify your mortgage so that you can repay the arrearage and get back on track with payments going forward. Keep in mind, however, that if you fail to honor the payments as agreed, the foreclosure can proceed.
You can stop your Washington, D.C. home foreclosure in a few ways. If you can sell your home in a short sale, Reply! can help you find a real estate attorney who specializes in short sales to help you.