7 Tips on How To Avoid Foreclosure
If there is one thing that we are afraid of when it comes to living in a Makati condo that is when it reached foreclosure. Foreclosure is the process of repossessing a mortgaged real estate property due to the failure to keep up with the monthly payments. Foreclosure does not exempt anyone who fails to maintain the payments of their condo unit for whatever reasons that they may have.
Most homeowners did not see it coming before even deciding to invest in a condo. Primarily, they make sure that they have the capacity to pay for the monthly payments of the unit. But for some, it is just inevitable to skip paying their condo bills, perhaps due to unexpected surcharge on the monthly bills.
If you are contemplating about facing a foreclosure someday at this early stage of decision-making, then you might want to refer to these tips to avoid foreclosures and defend your house against it.
1. Be knowledgeable about the payment option before purchasing the condo unit.
Like what every home-buyer should do before purchasing a condo, you have to be keen enough on the agreements that are stated in the contract. You have to understand the modes and terms of paying your condo unit whether if it is payable every month or every year. Know when you should pay and how especially if you want to avoid additional fees.
Being meticulous about the things that are stated in the agreement, especially when it comes to the payments is not a bad thing at all. It just means proactively attending to your finances while living in the condo unit that you’ve always dreamed of.
If you don’t understand a clause or is still confused about payments, don’t hesitate to ask questions about it to your realtor or the condo management. It is your right to ask anything so you may better understand the matter.
2. Exercise prudence in spending money during your loan term.
Admit it! Sometimes, we get tempted to buy things that we see for the first time, even if we do not have a need for it at the moment. We get carried away impulsively. With that, we also tend to forget that we have an obligation to pay our condo bills.
We all know that paying our monthly (or yearly) dues can sometimes be demanding. You have to be disciplined in spending your money. it would be wise to know how to budget your money, including how you intend to divide for fixed monthly payments, groceries, shopping and other expenses.
When it comes to spending, know your priorities first. List the things that you really need and you only want. Buy the needs first and buy the wants if you have an extra budget for them.
3. Find alternative means to earn extra income
If you think that investing in a condo is beyond your capacity just yet, it would not be wise to rush things. The most important thing when buying a property is knowing that you can actually pay for it.
There are instances when you don’t have the exact amount on hand. It is high time for you to be resourceful and find some alternative income sources. You can think of anything that you want to do and earn from it for you to reach the needed amount.
By the time that you have saved for the down payment and at least 6 months of monthly payment, who knows, much better yet more affordable condo units are already available.
4. Ask for help from your lender
Borrowing some money from any lender is not a bad thing at all for as long as you know how to repay the money you owe from him or her. Usually, lenders will see to it that you are a good payer before approving your loan. They don’t easily release and let someone borrow if they know that they don’t have a clear agreement on how the person can repay them.
Sometimes, you might have a hard time borrowing from a particular lender, and making an assurance that you will pay at the agreed date and time is not enough. Perhaps, you can further convince the lender to approve your loan by showing some documents and proofs. Anything to gain the confidence of the lender that you can really pay them and to avoid problems later on.
5. Know how to make a judgment call
Unexpected situations may occur anytime. As an owner, you must be very particular on what might cause the foreclosure. Before a foreclosure though, the condo association will be there to help. You must know how to defend and give acceptable reasons on to why you are not able to pay your amortization.
Further, the process always involves hard decisions. It, in fact, requires a lot of thinking about how you can defend your property against foreclosures or whether it is still worth it to defend it or just sell it and make a profit from it somehow. You might even that feel that your reasons are not good enough for them to reconsider foreclosing your unit.
With this, you must know the legal process of defending your house. If you think that you are not in the position to make legal decisions, you can ask some help from real estate agencies since they specialize in property-related problems. You can also seek counsel when you think that you already need one.
6.Beware of foreclosure rescue scams
When asking for a foreclosure rescue, however, you can never trust any agency that easily. It will only be a big risk on your part even when it is offering the lowest representation fee. Be careful when choosing the agency to help you in this matter.
Ending up with the wrong agency only jeopardizes you and your unit since there are already a lot of foreclosure rescue scams out there. Investigate the agencies of your choice. You have to check their background whether they are trustworthy enough to solve the issue. This can be the only way to put some faith and confidence in an agency that can really help you.
7.Know your options
When the situation calls for it, it is advisable that you have other viable options. If you are going to make the decision by yourself, it may not be applicable to your current situation. Comparing your options is possible before you whether it is the right thing to do or not and if it fits your situation or not.
Also, know and understand your situation so you would have a clearer view of all the factors that may impact your decision-making especially if the effects will be long-term. Do not decide immediately, and always think of a win-win situation.
Basically, you can definitely avoid foreclosure if you are careful in every decision that you make. In everything that you want to do, determine and prioritize the important things to avoid problems.