When you purchase a home and you do it with someone else’s money, the lender that provides the mortgage takes a security interest in the property. As long as you continue to make monthly payments as agreed you will eventually own the home outright; however, if you find that you cannot maintain the payments the fact that the lender holds a security interest gives him the right to proceed with a foreclosure in Washington DC. This act may result in the house being put up for auction; the proceeds will be used by the lender to recover the investment they made.
In the event the property fails to sell or it sells but the proceeds are insufficient to retire the outstanding balance of the loan then deficiency judgment can be pursed against you. Any foreclosure action or deficiency judgment will make getting a real estate loan in the future very difficult. A foreclosure in Washington DC is a worry for anyone who has financial problems but that are some options that can be pursed in an effort to avoid it.
You need to look hard at your situation and decide if letting the foreclosure happen might actually be beneficial to your situation. If you have a temporary problem, perhaps you lost your job, it may be only a short period of time before you are financially viable again and keeping the house is to your advantage. On the other hand your debt problems may be overwhelming and foreclosure might be the best way to erase the problems.
Credit counselors and foreclosure attorneys can give you professional advice based on your situation. In many cases these people can negotiate lower interest rates or reduced monthly payments with the lender to help you avoid having your home foreclosed. These people can work with you; they can objectively look at your income and debt, helping to create a plan that will be beneficial for you and the lender, as well as other creditors.
The loss mitigation personnel at the lender are those to contact about lowering payments for a few months, just long enough for you to overcome a short term problem. In some cases these officers may even suspend payments for a few months because lenders do not want to foreclose on your home, it is not in their best interests. Another way to avoid foreclosure in Washington DC is to renegotiate the loan. Perhaps when you bought the house interest rates were quite high whereas the interest rates today are lower. Refinancing the loan may drop the monthly payments to the point where you can handle them comfortably. For more information, visit the website
