Facing foreclosure is far from easy, but you don’t need to feel alone or ashamed. In today’s economy, especially hampered by the pandemic, the housing market is in some of the worst shape it has been in decades, and financial stress is no longer a unique situation. In the face of these difficulties, it is important to take care of yourself and maintain your health and sanity. Foreclosure often stems from debt that is beyond our control, and it is not something that regret can change.
With that being said, there are various options to deal with a foreclosure situation. If you are facing foreclosure in Salem, Oregon, here are a few options available to you through Salem’s foreclosure laws:
Option 1: Mortgage Loan Modification
Foreclosure law in Salem offers mortgage loan modification as one of the options to deal with your situation. Through mortgage loan modification, you may request to change certain terms of your original loan.
Through mortgage loan modification, you may request to extend the payment period, lower the interest rate of your loan, or convert to a fixed mortgage rate. This will allow you to lower the cost of your mortgage payments, and stabilize your finances.
A trial period is required before you can be permanently approved for mortgage loan modification. Make sure you understand and are capable of meeting the new terms of your lease should you obtain approval.
Option 2: Partial Claim
Another option for those facing foreclosure in Salem is partial claim.
You might qualify for partial claim if you are paying for private mortgage insurance. If your loan is privately insured, your service provider might be able to lend you the amount you need to pay off late payments and fees on your mortgage.
You can check the terms of your insurance to see if you qualify, or contact your loan insurer for further details. For those insured under the Federal Housing Administration (FHA) or the Veterans Administration (VA), a different set of guidelines might be in place regarding this option.
Option 3: Sell To A Professional Home Buyer Through Pre-Foreclosure Or Short Sale
Another option for those facing foreclosure is to sell the property to a cash home buyer in Salem .
If you might owe more than the appraised value of your property, your lender might allow you to sell for an amount lower than you owe through a short sale. Short sales occur prior to the foreclosure of a property, hence pre-foreclosure.
Short sale through a professional home buyer ensures a quick and stress-free transaction, as most legitimate home buyers prefer to work with cash and are willing to accept the property in any condition.
If you are looking to work with a cash home buyer in Salem, contact QHREI at: (503) 610-8828 or send an email to: info@qhrei.com to get started.
Be sure to ask your lender whether or not there will be a deficiency judgment. A deficiency judgement is the remaining amount you owe that is not recovered in the profits of the short sale, filed against you for difference. Be sure to clarify the status of deficiency in a written agreement.
Option 4: Reverse Mortgages
If you are a homeowner aged 62 years or older, foreclosure law in Salem offers reverse mortgage as an option. Reverse mortgage is a loan that allows you to borrow against the value of your home to receive funds, which you can have as a lump sum, fixed monthly payment, or line of credit to be used to pay off late payments or fees.
The reverse mortgage will not require you to make loan payments. Rather, the amount becomes payable if the homeowner passes away, moves away permanently, or sells the property.
A common loan you might qualify for is the Home Equity Conversion Mortgage (HECM), which is offered by the Federal Housing Administration (FHA). Other options are also available through reverse mortgage lenders.
Option 5: Deed In Lieu Of Foreclosure
If you have attempted all the previous options and are still facing foreclosure in Salem, you might want to consider a deed in lieu of foreclosure.
This requires you to return your house to your mortgage lender, surrendering the property and its titles and deeds. Doing so releases you from your obligations under the mortgage, which means you no longer have to fulfill your missed payments and can avoid foreclosure.
Some lenders might offer you money to move out of the property, under the expectation that the property is in good condition. Be sure to ask for proper documentation and review the terms and conditions of this transaction before accepting any cash for the deed.
Your Best Move Is To Consult Proper Counsel.
Take note of how each option affects your credit score or tax liabilities. Each of these options could affect your credit score negatively. Be sure to consult a housing counselor or a tax advisor for further information before you make a decision. Foreclosure attorneys are also a possible resource.
Remember: It’s Not Your Fault.
There are many reasons why you might be facing foreclosure, and many of these reasons might be beyond your control. Moving forward, make sure to take steps to protect yourself and your loved ones.
Take the time to learn more about the options and rights available to you, and make sure that the decision you ultimately choose to make is an informed one.
