How to Avoid Foreclosure in Prairie Village


While the housing market is rebounding, many people in Prairie Village] are still struggling to make their mortgage payments.

If you’re underwater on your home or having trouble keeping up with your monthly mortgage payments, you could be fearful that your mortgage provider is going to foreclose.

Thankfully, there are a number of things that you can do to avoid foreclosure in Prairie Village. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating and your home.

So let’s dive in on a couple quick tips on possibly how to avoid foreclosure in Prairie Village with your home.

The Keys of How To Avoid Foreclosure in Prairie Village Don’t Abandon Ship

Many people simply give up and walk away from their home. Detroit is a prime example of what can happen when people abandon their homes.

This can be a stressful situation, but it’s extremely important to keep your wits about you. A foreclosure will have a huge negative impact on n your credit score, and likely prevent you from purchasing a home for years to come. If you sell your home, you could leave a portion of the loan unpaid, and the lender could pursue legal action against your for the unpaid portion.

While it’s extremely stressful, you do have options:

  • Refinance:  A new loan—with new terms, interest rates and monthly payments—that completely replaces your current mortgage. Even if your home value has decreased or you owe more than your home is worth, you may be able to refinance your loan as part of the government’s Home Affordable Refinance Program (HARP).
    • Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
    • Creates no negative activity or event on your credit history
    • Stay in your home and avoid foreclosure
  • Repayment Plan:   An agreement between you and your mortgage company that lets you pay the past due amount—added on to your current mortgage payments—over a specified time period to bring your mortgage current.
    • Resolve your delinquency
    • Catch up on your past due payments over an extended period of time
    • Less damaging to your credit score than a foreclosure
    • Stay in your home and avoid foreclosure
  • Forbearance Plan:  An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time.
    • Have time to improve your financial situation and get back on your feet
    • Less damaging to your credit score than a foreclosure
    • Stay in your home and avoid foreclosure
  • Modification Plan: An agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of the loan, interest rate, etc.
    • May reduce your monthly mortgage payments to a more affordable amount
    • Less damaging to your credit score than a foreclosure
    • Stay in your home and avoid foreclosure
  • Short Sale: A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds.
    • Eliminate or reduce your remaining mortgage debt
    • Assistance for relocation may be available
    • Start repairing your credit sooner than if you went through a foreclosure
    • May be able to get another Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)
  • Deed in Lieu: With a Mortgage Release (Deed-in-Lieu of Foreclosure), you transfer the ownership of your property to the owner of your mortgage in exchange for a release from your loan and payments.
    • Eliminate your mortgage debt
    • May be eligible for up to $3,000 in relocation assistance
    • Start repairing your credit sooner than if you went through a foreclosure
    • May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)
    • Have flexibility and control over exiting your home—choose to vacate immediately, stay for up to three months (without paying rent), or lease the home for up to one year
  • Foreclosure:  A foreclosure is a legal process where your mortgage company obtains ownership of your home (i.e., repossess the property). A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan.
    • Eviction from your home—you’ll lose your home and any equity that you may have established
    • Stress and uncertainty of not knowing exactly when you will have to leave your home
    • Damage to your credit—impacting your ability to get new housing, credit, and maybe even potential employment, for many years
    • May owe a deficiency balance after the foreclosure sale
    •  Lose any relocation assistance or leasing opportunities that may be available with other options
    • Forfeit ability to get a Fannie Mae mortgage to purchase another home for up to 7 years (Fannie Mae guidelines)
  • We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Prairie Village have gone through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home. Fannie Mae has a great website with resources that you might find helpful here:  https://www.knowyouroptions.com  And as you explore your options, be sure to also consult with your tax advisor as many of these options do have taxable consequences.We may be able to help you avoid foreclosure… connect with us today and let’s discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you.

    Give us a call anytime at (816) 800-9044 or
    fill out the form on this website today! >>

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