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How to Avoid Foreclosure in 6 Steps

Are you a California homeowner who is struggling to make your mortgage payments? Are you worried about foreclosure? If so, you’re not alone. Every day, thousands of homeowners find themselves in the same situation. We know; we talk to and help so many of them all the time. 

The reality is, if you don’t take preventative steps, foreclosure may be a very real possibility. But try and cheer up because there are things you can do to prevent foreclosure and protect your home. Today, we’re going to give you six tips on how to do that. Keep reading to learn more!

1. See if you qualify for government assistance programs

If you’re thinking about filing for bankruptcy or just can’t afford your mortgage any longer, there are financial aid resources that might be able to provide some temporary relief from what’s hurting most – losing your home. There are many government assistance programs for homeowners facing California foreclosure. The most popular of these is called HAMP (Home Affordable Mortgage Program). This federal program was introduced in 2009 to specifically give struggling homeowners options to avoid foreclosure. It provides funds that can be used to reduce your monthly mortgage payments or adding additional equity. This has helped save a lot of homeowners from foreclosure so it’s definitely worth looking into.

2. Rent out a room in your house to ease costs

Another viable option to help avoid foreclosure is to rent out a room in your house. Doing this can help you bring in some extra cash each month, which can help you get back on track with your mortgage payments. So if you’re struggling to make your mortgage payments, consider renting out a room in your house. It may just be the solution you need.

3. Sell some of your belongings to generate some extra cash

This one is pretty obvious, but when you find yourself in a financial crisis, it can help to take some time to evaluate your belongings to decide what you can live without. Set those things aside and begin to sell them off, either online or in person. Try and get the most money for them as possible, but be reasonable so you don’t lose a sale. Use the money from selling your belongings to start paying more of your mortgage debt. Continue doing this until you’ve sold everything you don’t need and have extra money saved up. Then celebrate your newfound financial stability!

4. Take on a part-time job or start a side hustle

Foreclosure is a scary process, but there are ways to prevent it. If you’re already facing California foreclosure, consider taking on a part-time job or starting a side hustle. We realize it doesn’t sound exciting to give up spare time you didn’t even have before just to take more work on, but these extra income streams will help you stay afloat while you work to save your home. 

Only you know what kinds of things you could do on the side. Maybe you have some day trading experience and can see what wins can be made each morning when the market opens. Other people have restaurant serving experience and might pick up a night shift. It pays well when you consider the tips, afterall. Any in-person customer service jobs like that are highly understaffed across the country these days. At no other time in history could you expect to walk in and land a job as easily as you could today. Bottom line is, don’t give up – keep fighting for your home and your family’s future. 

5. Talk to your lender about about your options

There are a lot of options for homeowners who find themselves in the difficult situation of impending foreclosure. The trick is deciding which option is right for you. 

One thing you could do is ask your lender if there are any ways they might be able to help you get out from under the mountain until things improve financially. They might be able to offer you a loan modification or refinancing, or maybe they could help you sell your home on short sale or deed it in lieu of foreclosure. Let’s take a look at each of these a little more closely.

Loan Modification – A mortgage loan modification is an arrangement between your lender and you that can reduce the amount of your payments, usually while elongating terms. This could be just the answer you need to prevent foreclosure.

Refinancing – When you refinance your mortgage, it could lower your interest rate and save money, making it easier to pay the monthly payments. The benefits of refinancing before your lender begins the California foreclosure process far outweigh the few negative impacts to credit.

Selling your home on short sale – When an owner is financially distressed, the mortgage lender may accept a payoff amount for less than what they owe in order for them to resell it on short sale. The process of a short sale is much simpler than foreclosure and will not affect your credit as badly. 

Deeding a home in lieu of foreclosure – A deed-in-lieu of foreclosure is a legal agreement where you hand over your ownership to your lender in order to prevent foreclosure. This may help stop personal liability for any outstanding loans on your house.

These things really might be options! Be sure and communicate with your lenders early on so they have every chance to work with you before trouble strikes!

6. Let Osborne Homes Give You All Cash for Your Home

Let’s face it; mortgage payments can be a huge burden for homeowners. Don’t wait until you’re behind on them to do something about it! If you’re having trouble making your mortgage payments, it’s important to take action as soon as possible. The good news is that homeowners usually have a couple extra months to sort out late payments and work out foreclosure alternatives.
Can you sell a house in foreclosure? Sure you can! We buy houses that are at risk all the time. If you are feeling lost and unsure on what to do, you are not alone. Feel free to contact our team here at Osborne Homes. We have a solution for those facing California foreclosure, but we will go over all other options first and find the one that is the best fit for you!

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