Your home loan will have been written by any number of banks, private lenders, or a government agency that helps borrowers to attain home ownership. If Fannie Mae is your lender, they may come and foreclose on you if you get behind in your payments.
Texas House Buyers: Your home loan will have been written by any number of banks, private lenders, or a government agency that helps borrowers to attain home ownership. If Fannie Mae is your lender, they may come and foreclose on you if you get behind in your payments.
When you purchased your home under Fannie Mae guidelines, it was assumed that you would be able to afford to repay your loan on a monthly basis. We all know that circumstances can change as life throws us into many scenarios that affect our incomes and thereby our means to repay our loans.
If you have fallen behind on your payments and must seek assistance to try to save your home, you have a few options. That is true if you still have income coming in. Those who have lost their jobs and cannot pay any mortgage or rent on any living situation, the chances aren’t good that you’ll be approved for the government HAMP program that adjusts loans to make them more affordable.
You should have some form of income if you wish to apply for a modification of your loan. If not, you might consider selling your house before it goes into foreclosure and taking what cash you have in equity with you.
If there are loans and liens, you’ll need to pay those off first, of course. What is left over will belong to you and you can use that to secure a rental unit or some other living arrangement. Selling is definitely preferred in this case since a foreclosure is imminent and will stay on your credit information for years. That will make it difficult to even rent an apartment or house since many landlords do credit and background checks at this point. It’s easy and inexpensive for them to do so, making it all that much more important to keep your credit as clean as possible.
Selling your Texas house to a real estate investor to get the bank and other liens paid off before you go may be one of the best decisions you ever made. Don’t hide your head in the sand and wait for the eviction notice to come before taking action. If you wait that long, you may not have the option of selling, even to an investor.
It’s important to assess your situation to see whether you would be able to pay a mortgage in the future if it is made a bit lower each month, or will it always be a struggle that you can’t keep up with at this point in your life?