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Avoid Repossession

 Nobody buys a home thinking they can’t afford the payments. Be that as it may, there are many whose situations change. Other bills come up, people lose their jobs, health related problems happen, budgets are miscalculated, and all these factors can make homebuyers unable to pay their mortgage. If you’ve found yourself in danger of losing your home because of repossession there are actions that you can take that may save you from this tragic loss.

  • Communication is Important. Most lenders are willing to work with you if you’ve recently had a change in your life that makes you unable to pay your mortgage. Repossession for them is always the last resort, since it costs them a lot of money and is a big hassle. If you explain to them what has happened, maybe you’ve lost your job or are unable to work because of an accident, they may make arrangements with you to pay a smaller monthly payment until you get into a better financial situation.
  • Take the Gloves off. If your lender won’t agree to any better terms to help you get through this rough time in your life, you may not have any choice but to threaten bankruptcy. This might scare the company into considering another option. If you are eligible for Chapter 13 bankruptcy, it would be very hard for them to repossess your home. When making a decision, the judge granting your chapter 13 will not consider the wants of creditors.
  • Have Someone by your Side. Find yourself a good debt counselor to act as a mediator between your and your lender. Many times, creditors look at dealing with an impartial third party as a more professional way of dealing with things. They also see it as more of a guarantee that you really are serious in coming to some sort of agreement.
  • Start Fresh. If your current lender won’t budge and an agreement can’t be made, in order to avoid repossession of your home you could look for another lender that may provide you with a solution to your problem. Although this is a good path to saving your home, one should remember that these lenders will not be offering you the most competitive rates and terms. However, this new mortgage will allow you to pay off your existing loan and start fresh. You could refinance again to get a better rate once you get back on your feet and your finances are in order.
  • Sell, sell, sell. Perhaps these other options are not working for you. One thing you could do is sell your home with or without the option to buy back. You could also use the equity in your house to pay off any back payments to your creditors. If a family member or a friend is in the position to help you, perhaps they could buy the home with the option to buy back, allowing you to have time to put your finances in order. In the meantime, you could pay them some while they pay off the mortgage. Once you have saved the necessary amount of money. Make arrangements with them to buy back the home giving them a generous amount of cash for helping you.



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