6 Steps to Prevent Michigan Foreclosures

Posted in Michigan Foreclosures by Michigan Real Estate Expert on June 11th, 2009

The thought of losing your home due to a Michigan foreclosure can be a devastating experience. If you’ve been late on payments or missed them altogether, foreclosure could be in your future. However, it doesn’t have to be. There are varieties of steps you can take to prevent Michigan foreclosures.

1. Contact your lender
In order to sort out the situation, you need to involve your lender as soon as possible so you can figure out the next plan of action and keep your home.

2. Set up a repayment plan
Usually, repaying your missed payments is the start of fixing the problem; that’s why contacting the lender is so important. Depending on what you work out, your repayment costs may only be a little bit more than the cost of your current mortgage.

3. Try to get forbearance
Depending on your specific situation, you may be able to put your loan in forbearance. This means, you could be allowed to make smaller payments or you could be free from payments altogether for about a year.

4. Modify your loan
This is also known as a loan modification. The plan involves reducing your interest rate, resulting in cheaper payments. This can help you get back on track and avoid Michigan foreclosures.

5. Refinance
Refinancing your loan could also result in a lower interest rate, therefore, helping you keep your home. For example, if you have an adjustable rate mortgage that keeps going up each year, refinancing to a fixed-rate loan would be tremendously helpful.

6. Sell your home
Although this option is not ideal, it is better than foreclosure. When you sell your home, you have the chance to keep your credit score intact.

There are never any perfect choices when facing foreclosure. But before you think all is lost, examine your options.

If you need to sell your home as quickly as possible, I can help.  My 30-Day Marketing Plan will help get your home sold. I have a proven track record of selling 85% of the homes listed with me.  Call me at 248-514-2640 today to get started!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-514-2640

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