The answer is YES! (but with caveats, read below for more details)
There are many ways to avoid an expensive foreclosure in Philadelphia. Your first step if you’re trying to avoid foreclosure is to speak with your loan provider immediately to examine your choices to prevent home foreclosure.
Taking Action to Prevent Foreclosure
You must act before falling too far behind on your mortgage payments. Contact your financial institution as soon as you know you might miss a payment and explain your financial situation. Your mortgage loan organization would rather work with you to avoid losing money through foreclosure.
Be open and honest with your mortgage company. They may offer solutions like reducing your interest rate to lower your monthly payments. If you miss one or two payments but can start paying again, they might add those missed payments to the end of your loan, considering you caught up. However, they won’t help if you don’t communicate your situation early and ask for assistance.
Prioritize Your Mortgage Payments
Prevent home foreclosure by prioritizing your mortgage payments over other bills. Your home loan is your most critical monthly expense. Credit cards should not take precedence over your mortgage. The consequences of not paying credit cards are far less severe than those of missing mortgage payments.
Failing to pay your mortgage is the worst thing you can do for your credit score. Falling behind on other debts like credit cards won’t damage your credit as much as missing mortgage payments. Not paying your mortgage could also lead to issues with your credit cards, so they should not be your priority.
Selling Your Philadelphia House to Avoid Foreclosure
One way to avoid foreclosure is to pay off your mortgage by selling your property. Selling your house for enough cash to cover the mortgage can free you from financial hardship, and sometimes you may even have money left over to start anew. This approach prevents foreclosure and protects your credit score.
Another way to avoid foreclosure is to cut your spending to the bare minimum. Reducing expenses can help you keep your home. If you’re self-employed, consider working from home to save on office rent. You might also sell a car and share one vehicle to save money.
You can proactively prevent your home from going into foreclosure, protecting your credit and financial situation.
We Buy Local Philadelphia Houses… Can We Make You an Offer?
At Mike’s Cash for Homes, we buy houses in Philadelphia, Pennsylvania, and surrounding areas. We may be able to help you get out of your house and avoid foreclosure.