Due to recent turbulence in the housing market – and made worse by interest rate hikes, many people in Rhode Island have begun struggling to make their mortgage payments, amongst other debt obligations.
If you have gone ‘underwater’ on your home, or are having trouble keeping up with your monthly mortgage payments, it may be causing you stress wondering if your lender is going to foreclose on your home.
Thankfully, there are a number of things that you can do to avoid foreclosure in Rhode Island. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating and your home. You still have options and don’t have to give your home back to the bank as your only choice.
So lets dive in on a couple quick tips on possibly how to avoid foreclosure in Rhode Island with your home.
The Keys of How To Avoid Foreclosure in Rhode Island Don’t Abandon the Ship
Many people simply give up and walk away from their home, they think it’s their only option. There are even areas in the Rhode Island market which have begun to resemble ‘ghost towns’, as certain economic and social factors have negatively impacted property values and the residents who live there.
The Detroit housing market is a prime example of what can happen when people abandon their homes and cede control back to the bank.
This can be stressful and overwhelming situation, but it’s important to keep your wits about you and focus on the options you have available. A foreclosure will have a massive negative impact on your credit score, and likely prevent you from purchasing another home for years to come. If you sell your home and are unable to pay the remainder of the loan with your proceeds, the lender could pursue legal action against your for the unpaid portion.
While this can be extremely stressful, you do have options:
• Negotiate with your mortgage lender. Banks and other financial institutions are well aware that certain locals in Rhode Island may be struggling to make ends meet. If you haven’t missed a payment yet, you may have more leverage to renegotiate the terms of your loan. Banks don’t like foreclosing on homes, and many will work with you if you aren’t too far behind on payments. You may even be offered forbearance, or a full loan modification.
• Ask for help from Uncle Sam. Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments to refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements.
We at Home Tree understand that the possibility of losing your home can be stressful – You aren’t alone. Locals all over Rhode Island are going through the same troubles you may be experiencing. Foreclosure can have a lasting effect on your financial life, so remember it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure… connect with us today and lets discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you.