Foreclosure is always a frightening prospect, but it’s especially stressful during the holiday season. Unfortunately, it’s common for many families to miss mortgage payments around this time of year because there are so many financial stresses, from buying gifts and hosting family functions to dealing with increased utility bills because of the harsh weather.
If you’re concerned about making mortgage payments around the holidays or have already received a notice from your lender, here are a few options to avoid foreclosure.
5 Ways to Avoid Foreclosure During the Holidays
If you find yourself in a sticky financial situation, avoiding foreclosure can be possible – and we’re here to help.
1. Talk to Your Lender
If your home is facing foreclosure, it’s important to talk to your lender as soon as possible. Reach out to them as soon as you miss a payment, or even before, if you know you’re having trouble making payments and aren’t sure you can keep on track through the holidays.
It’s comforting to know that many banks slow down on foreclosures around the holidays. If you’re upfront about your situation, your lender will likely work with you to develop a new payment plan or put your loan into temporary forbearance.
The solutions that your lender can offer you will vary. They may be willing to modify the terms of your loan, such as reducing the interest rate, extending the loan term, or adding missed payments to the end of the loan, making it more affordable for you. Or they could offer temporary forbearance, which allows you to pause or reduce your mortgage payments for a specified period while you work through your financial difficulties. Afterward, you can gradually catch up on the missed payments.
2. Arrange a Short Sale
Short sales are a great way to get you out of a looming foreclosure, especially during the holiday season. If you’ve talked to your lender, and they can’t help you refinance or temporarily pause your mortgage payments, they might agree to a short sale.
Remember, your lender wants to keep their options open — foreclosure is a lot of work for them, and they’d like to avoid it if they can. If you can find a buyer for your home, your lender will likely work with you to arrange a short sale that gets you out from under that foreclosure.
3. Accept a Cash Offer
Cash offers can help you avoid foreclosure quickly, which might be exactly what you need during the holiday season. Since cash offers don’t require an extended closing period, they can be made and closed in just weeks or days instead of months. This can help you resolve the foreclosure issue quickly, ensuring your family is secure and in a new space by the time the holidays roll around.
Additionally, a cash offer can give you the bit of money you need to make a downpayment on your next home or the required security deposit on a new apartment.
4. Stay In Your Home and Pay Off Debt
It’s no secret that the holidays can be stressful for some people. The last thing you want to do is look for a buyer or find a cash offer and move out during this time of year, but rest assured; there are some bright options.
Here at Renewed Homes, we understand homeowners’ challenges during the holidays, especially if they are at risk of foreclosure. The pressure of finding a buyer or dealing with the possibility of losing your home can make the holidays even more overwhelming, so we’ve developed a solution to help alleviate this burden.
We specialize in helping homeowners stay in their homes while addressing their financial challenges. Our approach involves assuming your liens and debt, giving you the time you need to get back on your feet and actually enjoy the holidays with your loved ones. With Renewed Homes, you won’t have to worry about moving out during this stressful time. Instead, you can focus on creating lasting memories with your family.
5. Avoid Foreclosure and Build Back Your Credit
Foreclosure can have a devastating impact on your credit score, especially when you’re trying to manage holiday-related expenses and gift-giving. If you’re genuinely concerned about the prospect of foreclosure and recognize that your credit cannot withstand the blow, Renewed Homes can provide the assistance you need. Our approach involves assuming your existing mortgage while keeping it in your name.
We step in to manage your mortgage, ensuring that your outstanding payments are up to date, and we continue making timely payments on your behalf, preventing the further decline of your credit score. As we diligently manage your mortgage, your credit score gradually improves.
While we’re working to rebuild your credit, we also give you the time you need to find a new home that better suits your circumstances. You won’t have to rush into a hasty decision. To help you start fresh with improved credit, Renewed Homes offers additional cash assistance on top of our arrangement. This financial support can be a crucial stepping stone toward a brighter financial future.
Discover How Renewed Homes Can Help You This Holiday Season
If you’re worried about foreclosure this holiday season, please know that help is available. Renewed Homes offers a variety of creative financial solutions designed to help you get back on your feet. Whether you want to stay in your home or figure out how to move, we have you covered. Give us a call at 269-362-0931; we’re here to help.