A Few Significant Ways to Prevent Losing Your Property to Banks

When you obtain mortgage to purchase a property, you are expected to repay the home loan on time by making timely monthly payments. Failing to do so, you might end up encountering serious consequences, the worst of which includes facing a foreclosure, where your mortgage lender repossesses your home to compensate for the loss that he had to bear due to your loan default. The attorney of the creditor gets a court order to foreclose on your real estate. The feeling of losing your valuable asset is very painful. Fortunately, there are a few effective tips that you can take into account to avoid foreclosure, including the following.

One of the perfect things that you can do to avert losing your home is consulting your lending institution. Get in touch with your creditor and let him know about what is causing you to default on your loan. Inform your bank about your present financial condition and request them to revise your loan term and monthly payments as per your financial credibility so that you are able to repay your debt on time without any hassle. Since lenders are also humans, they might understand your problem and offer you a lenient and affordable mortgage.

Selling your home in a short sale through a real estate agent is another thing that you can consider to stop repossession of your asset. When you sell your property via a short sale, you sell it at a lower value than the actual market price of you house, based on the bank’s or lender’s agreement. Although, you do not get any money or cash from the sale, you can certainly avoid foreclosure proceedings on your property. However, you still would be liable to capital gain taxes.

Conversely, if you are not able to sell your house through a short sale, you can consider of surrendering it to the lending institution. When you surrender and hand over your keys to your servicer, the lending institutions claim that they would not repossess your real estate. But, the truth is, it is similar to foreclosure on your credit report. When you surrender your house, you might get away with the need of paying fees or penalty charged by the banks, but you are yet responsible to pay for capital gain taxes based on the difference of selling price and cost price of the property.

Many people struggling with unmanaged debt file for bankruptcy to avoid repossession of their commercial or residential real estate. It is viable to remember bankruptcy does not stop creditors from repossessing your land, rather it delays the process. The court places a stay order when a property owner files for bankruptcy. This in turn hinders the lender from repossessing the asset until the case is pending in the court. Therefore, you can opt for bankruptcy if you want to delay the processing on your house for a period of time. However, make sure not to file for the same unless and until you are not left with any other option to prevent your home from repossession. You can consult foreclosure experts to find out which option works the best for you.

Are you planning to gift your family a house which is set amidst luxuries? If yes, harjirealtors Sunny Heights would be one of the best options. This project helps you to choose a flat depending on your budget and preferences. So visit us at harjirealtors.net/sunny-heights.html today!

For complete information on buying Flat in Mohali or for buying any Plot in Mohali contact us now