With the economy taking a downturn over the last few years, many homeowners are finding themselves facing foreclosure. Whether it be because of a reduction in hours, divorce, job loss, or a death in the family, the thought of foreclosure is scary. If you are struggling to keep up and worried that you might lose your home, there are a few ways you can get back on your feet. It might be time to get on the phone and ask the bank what options they can offer you. Not sure how it can help? Here's how banks are helping homeowners just like you.
Increasing the length of your loan.
One of the main ways banks work with consumers is by extending the length of the loan from a 30-year mortgage to a 40-year mortgage. While this might help to reduce your overall payment every month, you will be paying for your home for longer than originally planned. However, many homeowners are able to refinance or sell their home before they have to pay all of the extra off, which still makes it a good option.
Eliminating the adjustable rate.
When you have an adjustable rate mortgage, your payment is going to fluctuate every month. If the interest rates go up, your payment goes up. On the other hand, when interest rates are down, your payments are down. This fluctuating payment makes it hard for individuals to keep up with what their payment is going to be. You are better off getting on a fixed rate mortgage than you are playing the guessing game. Some banks will offer you a low starting rate that slowly goes up until it stops at a fixed rate.
Wiping out the fees.
Many of the banks are willing to work with those who are having trouble and trying to make their payments. They will often waive the fees on your account in an attempt to get you back on track with a payment that is going to work for you and your budget.
Above all else, you need to ask the bank what options you have available to you. Not doing anything and hoping it will go away will only make matters worse. Spend time going over everything with a foreclosure attorney to make sure you understand the terms the bank is proposing to keep you from losing your home and all of the money you invested into it. For more information, talk to a foreclosure attorney like Legal Clinic Of Jerry Paeth.
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