Paying off your house is something that can stress out almost every homeowner and can take you years to pay off. Because of this, many people are having to foreclose on their houses and face disastrous consequences to their credit. Thankfully, companies like Favor Home Solutions exist to help you get out of a common situation so you can save your credit score. We take over mortgage payments in Chattanooga so that homeowners can rest easy knowing their credit score is safe from foreclosure.
Why foreclosure damages your credit
Paying off a mortgage involves you paying off the amount your house is worth over a period of months and years. Unfortunately, life happens and can make it very difficult to pay off your house payment under troubling situations. This is where foreclosure comes in and your bank can essentially sell your house or assets until the value of the house is recovered. This not only can cause you to lose your house, but it can destroy your credit score making it hard to buy another house in the future.
How to avoid foreclosure
Change your payments
The first thing many people try to do to avoid foreclosure is to change their payments. What this involves is working with a new bank to try and see if they ill loan you money to help pay for your house. While this process can work sometimes, it is often very hard to get payments when you are soon to be foreclosed upon.
Try extending your mortgage
With some banks, you can get the option to extend your mortgage payments. This option is not always allowed, but they will sometimes allow you to extend your payments if you can prove that you need the extension. If you fill out the correct paperwork and get approval, this can help you get more time to pay your bills.
Use a credit saving tool
When your bank won’t help you out, Favor Home Solutions will gladly help you out to save your credit score and house. When you work with the bank to try extending payments, you often damage your credit score. With us, we can take over your mortgage with relative ease so your credit score can be saved. Work with us to take over your mortgage and get you on the right track at 423-509-8686.
Sell the house
If it comes down to it, you can sell your house to prevent foreclosure. This is usually known as a short sale and involves you selling a house for less than it is actually worth to get rid of the debt. This option is often tricky to navigate, but it is an option.
To save your credit score, you need to understand all of your options when looking to avoid foreclosure. Whether you take a hit by extending the loan or work with Favor Home Solutions to save your credit, avoiding foreclosure on your house is certainly doable if you put your mind to it.