When individuals face financial difficulties in Illinois, they can fall behind on their bills. If they fall behind on their house payments, they may face foreclosure. Many people assume that foreclosure automatically means they’ll lose their homes.
That’s not necessarily the case. There are steps homeowners can take to prevent the loss of their home. These alternatives can help stop the foreclosure process. Here are some alternatives to foreclosure that are available to homeowners.
Refinance the existing loan
When homeowners face financial difficulties, refinancing their home loan can help them avoid foreclosure. Taking this measure before any payments are missed can help homeowners save their home from foreclosure. Additionally, refinancing can also help them save money on their monthly mortgage payments.
Get a mortgage forbearance
When homeowners fall behind on their house payments, there are options available that can help them save their homes from foreclosure. Homeowners can use forbearance to adjust their payments. One forbearance method moves the amount they owe to the end of the loan term. Another method divides the past due amount and spreads it over a specific number of payments.
Ask about a repayment plan
If forbearance is not an option, homeowners can also request a repayment plan. A mortgage repayment plan lets them get back on track with their past due payments without the risk of foreclosure.
Request a loan modification
When homeowners face major life events, they often face home foreclosure. That’s especially true when they can no longer afford the terms of their current mortgages. A loan modification can help avoid the need for foreclosure defense by changing the terms of the mortgage. With a loan modification, homeowners receive new terms that they can afford, which will help them keep their homes.
Financial difficulties can have devastating consequences, but they don’t need to result in foreclosure. By taking any of these above measures, homeowners can save their homes.