Foreclosure is a serious issue facing many homeowners in the state of Virginia, including Alexandria. Foreclosure is a process where the bank takes possession of your home and sells it to pay off the mortgage. This can happen for a variety of reasons but often times it’s because the homeowner has lost their job and cannot make payments on their mortgage. The following are 7 tips to help avoid foreclosure in Alexandria VA.
7 Tips To Avoid Foreclosure in Alexandria VA
1. Collect Your Loan Documents
When you’re behind on mortgage payments, the first thing to do is set up a file for your records. Gather important documents like copies of the promissory note and loan agreements that are related to your home so they can go in this case folder with other bank statements, letters from creditors, or past due notices.
2. Understand Your Legal Rights
If you are struggling to pay your mortgage in Alexandria VA, it is important that you know what rights and options may be available for reinstating the loan. This includes understanding whether state law allows a right of re-instatement or if there’s an option in which past due amounts can be paid off over time without penalty (although this will depend on how much money they want). The documents issued by the lender when taking out the loan should also contain information about any fees associated with late payments as well as other costs incurred if payment go unpaid.
3. Organize Your Financial Information
Organize your financial information to help you see where you stand in terms of house payments. Collecting recent pay stubs and profit/loss statements, bank records, federal tax returns or any other type of income you get on the side should eliminate confusion about how much money is being put away for current expenses versus areas such as retirement savings that are not funded sufficiently enough. Once this has been accomplished it becomes easier to calculate what monthly payment can be made in order to save your home from foreclosure in Alexandria VA while still maintaining necessary lifestyle costs.
4. Create a Realistic Budget
Stay on top of your finances by reviewing what you spend and developing a realistic budget. This can help make sure that you don’t have debt piling up too quickly. It’s important not only for keeping tabs with how much money is coming in, but also where it goes out as well. Start by looking at how much money you are bringing into a month versus what’s going out each day or week from spending habits, optional expenses that might be able to go away if need-be (e.g., coffee every morning), etc. Then create an effective plan of action so things can get better moving forward when possible without adding too much stress while also not sacrificing necessities.
5. Investigate Loan Modifications
Call your lender to see if you can qualify for a loan modification. A loan modification is a permanent change to your mortgage terms, and it could extend the amount of time you have to pay off the loan or reduce interest rates. If approved, any past-due amounts are added onto the balance so future payments will be higher. Depending on your circumstances, you can also qualify for Fannie Mae and Freddie Mac Flex Modifications which offer more benefits than an in-house one like lower monthly fees and less risk of defaulting on their payment agreements because they’re backed by Uncle Sam!
6. Learn About Alexandria’s Foreclosure Laws
The Virginia State Law portal has some good information on the state’s foreclosure laws. Just head over to their website and look for “foreclosure” in the search bar at top of page. You should also look for more information on mortgage assistance and foreclosure prevention programs:
- Avoid foreclosure
- Forbearance agreements
- Foreclosure Laws in VA – What You Need To Know For Homeowners
7. Sell Your Home Before Foreclosure
A last resort can be to sell your home before foreclosure in Alexandria VA. Real estate investors can offer cash for your home in its current condition. As a local “we buy houses” company, we have helped many people avoid foreclosure by selling their homes quickly for a fair price. Call us to find out how easy it is to sell your Alexandria Virginia property while avoiding all the stress involved when going through the long process of bankruptcy or foreclosing on your mortgage.
Final Thoughts: How To Avoid Foreclosure In Alexandria Virginia
We hope you found this article helpful. Foreclosure is a serious problem that can cause significant financial and emotional strain on families, but there are effective ways to avoid it. For more information about avoiding foreclosure in Alexandria VA or for assistance with your mortgage company please contact us today. (571) 207-5171