A foreclosure in Lincoln can be a very scary thing.

  Avoid foreclosure in Lincoln NebraskaAnytime you run into financial trouble you never know what can be the outcome.  Too many times we see this lead to a foreclosure of your home. The initial fear of a foreclosure in Lincoln can be very stressful. But, did you know there are multiple options available to you as a homeowner? While some methods do require money. There are others that do not require money right away. Below are a few quick tips to help you avoid a foreclosure in Lincoln Nebraska.

Step 1: Don’t Panic. Most people have a surprising amount of assets available that can be used to make some payments to delay a foreclosure. Just a few that often times get overlooked are unemployment insurance, disability insurance and a IRA or 401k can be used to delay a foreclosure in Lincoln. Changing your household budget can be a big one that often times is overlooked. Having expensive cars or trucks that can be traded in for cash.
  • Step 2: Late And Missed Payments.
If you cannot defer or delay a payment, you need to contact your lender as soon as possible. Often times they can work with you if they know in advance. Your over all goal is to help your lender and work out an agreement that will modify your mortgage, this can stop a foreclosure before it goes to completion.
  • Step 3: Look At Workout Options.
Enter into talks with your lender. Don’t just try to handle this all by yourself. Often times a lender can give you some great options to work out the issues. they can be anything from:
  1. Loan Modifications: This should be talked about when you run into issues making your normal mortgage payment as this can give you a long term solution for saving your home.
  2. Repayment Plans: An example of this is – if you miss a payment that is normally $1000, with a repayment plan you might pay $1,100 a month until the missed payment is repaid.
  3. Reinstatement: What if you missed two or three payments? With a reinstatement, you bring your mortgage up to date. Pay off any late fees you may have and any other additional costs that can incur and your loan continues as before.
  4. VA Refunding: If you have a loan that is backed by the VA, They can contact your lender and buy the loan from them. This would make the VA your new lender. This is a good option if your lender can not work with you on your current mortgage.
  5. FHA Loans: If you have a loan that is guaranteed by the FHA just call 1-800-569-4287 or 1-800-877-8339 (TDD) or go to the HUD site. Ask for the counseling agency for assistance and advice.
  6. Forbearance: This is just a temporary change to the terms of your current mortgage. And can include the right to skip a payment or to allow lower monthly payments for up to one year.
  7. Private Mortgage Insurers: Typically mortgage insurance companies will require the banks to start the foreclosure process first. Once a mortgage falls behind either 6 payments or 150 days is typically when this becomes an option. However, there are times when this requirement my be waived. Typically during times of natural disasters or other non typical reasons.
  8. Claim Advance: If you set up your mortgage with less then 20% down then typically the loan is either self insured or there is a private mortgage insurance. In some cases some companies will be able to offer a cash advance. to help bring your loan current. Sometimes this is a interest free loan and will not require repayment for a few years.
  9. Disaster: Most mortgage lenders but not all, will provide a great amount of relief when dealing with a disaster. Usually this will include a suspension or even waived late fees, not reporting to the credit agencies or pausing all actions on your loan until things are back to stable ground. However, you need to contact your lender quickly to find out what options are available to you and your situation.
  10. Re-Amortization: In this situation what happens is your missed payment is just added to the mortgage balance. This will bring your current mortgage up to being current. Keep in mind doing this can cause your monthly payments to actually be higher. This is due to the length of your loan is not extended. Sometimes though you can get the lender to extend the length of the mortgage. This can keep your monthly payment the same.
  11. Deed in Lieu: A deed in lieu allows you to sign the ownership of your home to your mortgage company, as an agreement not to foreclose on your home.
  12. Short Sale: This is an agreement with the lender to accept less than the mortgage amount to pay off the entire mortgage of your home. Be careful with these though. Sometimes a lender will sue to recover the short sale value that was lost in the loan. Other times money not repaid can be classified as taxable income.
  13. Bankruptcy: When everything else has failed this maybe a last resort to save your home. Often times filling for bankruptcy will only delay the foreclosure, at times it can speed up the process as well. Make sure you find out all of the details before you take this step.
  • Step 4: Refinance The Loan.
Beginning in 2001 all kinds of new loan types have been issued. Some of them start your payments off low and increase over the term of the mortgage. If you are in one of these loans your best option is to refinance your mortgage now before you end up in a bad situation. Another loan that is worth getting out of as soon as you can is and ARM. Adjustable Rate Mortgage loans can cause a bankruptcy very fast once the rates start to change. While your monthly payments maybe low at first you never know what rate the lender will jump your mortgage to at a later date.
  • Step 5: Sell The Property.
If there comes a time where you can not work out a solution or come up with a refinancing solution to save your home. Then we can help out. With our ability to give you a fair cash offer for your home. We can help you get your mortgage paid off in days and avoid the whole sticky mess. If the situation is getting worse every month, you have to protect your interests and sell the property. This is a hard choice but if you sell before foreclosure you will get a better price for the property and preserve your credit standing. Most importantly, remember that there still are options, but you have to act quickly. Also, never rule out seeking out foreclosure assistance.