Investing in immovable assets is the best way to ensure future peace of mind. However, whether it’s a home, business premises or land, the prospect of foreclosure is always met with disdain. So when you start lagging behind on mortgage payments and your debt starts to spiral, only one thing can save you, and that’s debt restructuring. Because lending institutions are generally backed by private investors, you might need to know how investors can help those facing foreclosure. At the end of the day, it’s really them who have the final say.
Full Payoff Refinancing
When you find your back against the wall, consider refinancing you mortgage. What makes this such a flexible option is that it’s not restricted to lending institutions alone. With the help of an investment broker you can actually find an investor who is willing to pay off your loan and take the place of your original lender as principal creditor. The beauty of this is that you can actually negotiate cheaper interest rates than those of conventional lenders, who are out to make a profit. The end result is that you get to repay the loan over an extended period of time.
Forbearance A Clean Way Out
Forbearance literally implies patience, restraint and tolerance. During a period of forbearance, your monthly payments are either reduced or placed on hold for an agreed period of time. The most common kind is the Federal Housing Administration’s Forbearance. This caters for people facing financial difficulties brought upon by circumstances beyond their control, e.g the death of a breadwinner, sudden illness, acute disability and natural disasters.
Then of course you have the Service Members Civil Relief Act (SCRA). This piece of legislation gives special preference to active members of the military who default on repayment owing to military service. Their loans can be postponed or suspended.