3 Ways to Prevent a Foreclosure

In times of hardship, it's easy to fall behind on your Lake of the Ozarks mortgage payments. Your monthly home loan payment is likely your largest monthly bill. If you are struggling to make your monthly payment, and are worried about a possible foreclosure on your home, the best thing to do is contact your mortgage lender at the Lake of the Ozarks to discuss your options. Let's take a look at 3 ways to possibly prevent a foreclosure on your home.

1. Apply for a Loan Modification. 

A loan modification is when your lender agrees to adjust the terms of your loan, either to reduce the payment amount or the rate, to make the payment more affordable to you. Federal and state laws prohibit foreclosures when a loan modification review is in process. The Making Home Affordable (MHA) Program is a government initiative designed to help homeowners avoid foreclosure. A loan modification application is similar to that of your original loan, in that you'll have to provide a lot of documentation. This documentation will have to show and explain what caused your hardship, how long you think it will last and what your new income is.

2. Short Sale Your Home. 

If your sudden hardship is likely to be long-term and you know that you cannot afford to keep your home, you might consider a short sale of your home. This option is only applicable to homeowners that owe more on their home than what it's worth. Your mortgage lender must approve the short sale before you list your home, as they have to agree to taking less than the loan balance when the home sells. When it comes to the possibility of a short sale, the two most common hardship reasons accepted are that lower income has made your home unaffordable or that you're subject to a mandatory job relocation.

3. File for Bankruptcy. 

Filing for bankruptcy is a very serious situation and should be thoroughly considered. However, it can help you prevent a foreclosure on your home. A bankruptcy halts a foreclosure as soon as it is filed. While a lender can appeal with the bankruptcy court to continue the foreclosure, the process can take at least one to two months.

If you're concerned with falling behind on your mortgage payments, talk to your mortgage professional as soon as possible. Don't keep struggling to make the payments; it's better to start dealing with the issue now, than to wait until it gets out of hand and you are several months behind in payments. As your Lake of the Ozarks mortgage lender, I'm here to help you with all your Lake of the Ozarks financing needs, and I am here for you every step of the way!

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Michael Lasson

Sr. Loan Officer

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.