6 Steps to Prevent Santa Cruz Foreclosures

Posted by Lauren Spencer on Thursday, July 2nd, 2009 at 9:11am.

The thought of losing your home due to foreclosure can be a devastating experience. If you've been late on payments or missed them altogether, foreclosure could be in your future. However, it doesn't have to be. There are varieties of steps you can take to prevent Santa Cruz foreclosures.

1. Contact your lender

In order to sort out the situation, you need to involve your lender as soon as possible so you can figure out the next plan of action and keep your home.

2. Set up a repayment plan

Usually, repaying your missed payments is the start of fixing the problem; that's why contacting the lender is so important. Depending on what you work out, your repayment costs may only be a little bit more than the cost of your current mortgage.

3. Try to get forbearance

Depending on your specific situation, you may be able to put your loan in forbearance. This means, you could be allowed to make smaller payments or you could be free from payments altogether for about a year.

4. Modify your loan

This is also known as a loan modification. The plan involves reducing your interest rate, resulting in cheaper payments. This can help you get back on track and avoid Santa Cruz foreclosures.

5. Refinance

Refinancing your loan could also result in a lower interest rate, therefore, helping you keep you home. For example, if you have an adjustable rate mortgage that keeps going up each year, refinancing to a fixed-rate loan would be tremendously helpful.

6. Sell your home

Although this option is not ideal, it is better than foreclosure. When you sell your home, you have the chance to keep your credit score intact.

There are never any perfect choices when facing foreclosure. But before you think all is lost, examine your options.

If you need to sell your home as quickly as possible, give me a call at 831.662.6522.  I have a proven track record for selling homes faster than the average Santa Cruz real estate agent.

 

LINKS:

Lender

Forbearance

Refinancing your loan

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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