Options that would let you stay in your house:-
Refinancing means converting the due loan payment into a new loan with the new terms and rules. Such a loan will have new interest rates and the amount of monthly payment would also be different. You can get your mortgage refinanced even in the case you owe more than the value of your house.
Refinancing will make the monthly payment affordable for you without making any negative activity on your credit card.
2. Repayment Loan
It is an agreement between you and your lender according to which you can pay your due amount by adjusting it in the current mortgage payments. It will be for a specified time period. Repayment Loan will let you avoid foreclosure in Houston while resolving your delinquency and while letting you make your past due payments in an extended time period. Though it will affect your credit score but the damage will be less.
3. Loan Modification
It is an agreement made between you and your lender in which the original terms of the loan are modified. The monthly payments can be reduced, the interest rate can be lowered or the loan term can be extended. A loan modification will also make your mortgage payments affordable for you and the damage to the credit score would be less than that would be caused due to the foreclosure.
Forbearance provides you time to improve your financial conditions and get back on your feet. In this, your mortgage company would reduce the monthly payments or would suspend it completely for a specified period of time. After that period, you would continue with the original loan terms. As you would not be regular with your original loan payments, forbearance will also affect your credit card but the damage would be less than the foreclosure.
Options that would need you to leave your house
1. Short Sale
A short sale is a process in which your lender allows you to sell your house for less than what you actually owe on your mortgage. You can sell your house and can use the money to pay off all your debt. When you go for a short sale, your credit card gets repaired sooner as compared to the case when you go through a foreclosure. You can also get the assistance for relocation or would be qualified for another mortgage sooner than a foreclosure.
2. Mortgage Release
The term is self-explanatory; in this, an agreement would be made between you and your lender according to which you would give him the ownership of your property and in return, he would release you from the mortgage and the remaining payments.
In the case of mortgage release, you can choose whether you want to vacate immediately or want to take some time. You can stay for up to 3 months in your homes. It would also let you get the relocation assistance.
"All these options are good but which would be suitable for you depends on the fact that how early you take an action. If you have skipped one or more of your mortgage payments then chances are there that your lender may proceed with the foreclosure. So, rather than being depressed you must think that what could be done. You should meet an experienced Houston foreclosure agent who can recommend you the best option and would help you to come out of the difficult situation."