Westmarq’s, David Stanger Shares 5 Ways to Avoid Foreclosure

Westmarq’s, David Stanger Shares 5 Ways to Avoid Foreclosure

Foreclosure is a scary word; however, it is something that many Americans worry about daily. Buying a home is expensive and the thought of paying off your mortgage for decades to come is daunting. That said, after purchasing a home, it is crucial to do everything in your power to avoid foreclosure. David Stanger is a real estate expert, having studied Real Estate Finance and Investment in NYU. Today, he is an integral part of Westmarq Real Estate Group in Lakewood, New Jersey and boasts years of hands-on experience with complex real estate transactions. This makes him the perfect person to provide his insight into foreclosure, providing his top five ways to keep your home safe from foreclosure.

1. Create a Budget

David Stanger asserts that the very first step one should take to prevent foreclosure on their home is to create a budget. Having a clear understanding of your income and expenses is vital. This budget sheet should be as detailed as possible. This means including any of the debts you owe, the interest rates you are paying on those debts, and your minimum payments. Then, it’s time to estimate your monthly expenses, including everyday items like groceries and gas. Make sure to also take into account bills, such as credit card bills, utilities like electricity, and your mobile phone. Laying this out will allow you to determine whether you have the means to save your home. It will also be a useful tool down the line if you consider an offer from a lender, as it will help you in deciding which offer is right for you.

2. Prioritize Your Mortgage

According to David Stanger of Westmarq, a home loan should always be one of your top priorities. Thus, he recommends doing whatever you can to be able to make your mortgage payments each month. Falling behind on your mortgage is extremely risky and often only gets worse. Once you start falling behind, foreclosure becomes much more likely. One way to prioritize your mortgage is to look at the budget you created and begin trimming back. Reviewing your finances and making some cuts is a necessary step if you wish to continue paying your mortgage and avoid foreclosure. For example, Stanger recommends surveying any optional expenses first, such as cable TV or online memberships like Netflix or Amazon Prime. Finally, although ideally you would be able to pay all of your bills on time, delaying a payment on your credit card is a much better option than delaying a mortgage payment, so do what you have to in order to prioritize your home.

3. Consider Refinancing your Mortgage

To keep your home safe from foreclosure, David Stanger claims that another option is to refinance your home. As long as your credit hasn’t been negatively affected, you should still be able to obtain a loan at an advantageous rate. In addition, the Department of Housing and Urban Development does offer refinancing and loan modification programs that may help you get back on your feet. Most of these programs specifically target borrowers who recently lost their job or those who are significantly behind on their mortgage payments.

4. Have an Honest Conversation with Your Lender

If you’re worried about foreclosure, one of the first steps you should take is to talk to your lender. Lenders ultimately do not want your house, nor do they want to see you struggling. From their point of view, foreclosure is expensive and time-consuming, so just like you, they want to avoid it. As such, lenders will be able to provide you with options to help you during a difficult time. In fact, they usually have entire teams dedicated to such issues. Examples of what they might offer include making lower payments for a predetermined period of time or adding missed payments onto an existing loan.

5. Know Your Rights

Even if you’re approaching foreclosure, you still have rights. David Stanger recommends finding your original loan documents and going over them with a fine-tooth comb. This will help you understand exactly what your lender will do if you fail to make your payments. Once you’re aware of the consequences, get in touch with the State Government Housing Office. This is the best way to learn about the foreclosure laws in your region, as each state has different laws. Knowing your rights is crucial as it will allow you to plan and prepare for foreclosure as much as possible.

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