It’s not a top-secret that the housing market has taken a turn for the worse in recent years. Many people are struggling themselves in foreclosure due to job loss, unexpected medical bills, or other unforeseen circumstances.
If you’re one of these people, don’t panic! There are still alternatives to foreclosure available for you. In this blog post, we’ll discuss the 4 most common causes of foreclosure and what you can do to avoid it. Keep reading for more.
Foreclosure is the legal process by which a lender takes back ownership of a property after the borrower has failed to make all the payments on their mortgage.
This process can be lengthy and expensive, so it’s important to know your options if you find yourself in this situation.
Cons Of Foreclosure
There are several disadvantages to foreclosure. Some of them are:
- You’ll have to move out of your home.
- It will damage your credit score.
- The foreclosure process can be expensive.
- You might still owe money to the lender after the foreclosure is complete.
4 Main Causes Of Foreclosure
There are many reasons why homeowners might find themselves in foreclosure, but some causes are more common than others. Here are the 4 most common ones:
#1 Job Loss
One of the most typical causes of foreclosure is job loss. If you can’t make your mortgage payments because you’ve lost your income, the lender will likely foreclose on the property.
#2 Medical Bills
Another common cause of foreclosure is unexpected medical bills. If you can not afford to pay your mortgage and medical bills simultaneously, the lender may foreclose.
Divorce can also lead to a foreclosure if you and your spouse can’t agree on who will keep the house. If neither of you can afford the mortgage on your own, the lender may foreclose.
Finally, death is another common cause of foreclosure. If the family’s breadwinner dies and the remaining family can’t afford the mortgage, the lender may foreclose.
Avoid Foreclosure With These Solutions
If you’re facing foreclosure, don’t worry! There are still some things you can do to avoid it.
Here are a few of your options:
Refinance The Property
If you’re currently on your mortgage payments but are worried about being able to afford them in the very far future, you can try refinancing. This will lower your monthly payments and give you some breathing room.
Get Help From A Housing Counselor
Another way to avoid foreclosure is getting help from a housing counselor. They can provide you with every advice and assistance on keeping your home.
Apply For A Loan Modification
One of the most known ways to avoid foreclosure is applying for a loan modification. This will lower your interest rate and monthly payments, making it easier to afford your mortgage.
Sell To A Home Buyer
If you can’t afford to keep up with the mortgage payments, you may want to consider selling the property. A home buyer can give you a cash offer for your home regardless of the condition.
Central Florida Property Investors, The Home Buyers You Need In Central Florida
Are you trying to sell your distressed property? At Central Florida Property Investors, we buy houses as-is. We’re a group of cash buyers who will make you an offer on your property without any hassles or waiting.
We’ll close quickly and provide you with the cash that you need. If you’re looking for a home buyer in Central Florida, contact us today! We’d be happy to help you by buying your distressed property fast!