Homes are often the largest investment that people make. Aside from a significant financial commitment, owning a home also represents safety and security for many in South Carolina. When faced with significant amounts of debt and possible foreclosure, finding effective alternatives can be important. Giving in to foreclosure can have profoundly negative effects on a homeowner’s credit and financial stability when done unnecessarily.
Homeowners often wrongly believe that there is nothing to be done once the possibility of foreclosure is brought up. Some opt to throw in the towel prematurely, allowing their lender to repossess their home. Many lenders will actively work with homeowners during this process and will allow for a special forbearance. Those who have experienced either increased living expenses or reduced incomes and can demonstrate this to their lender might qualify for a newly arranged payment plan. This might include a temporary payment reduction or even suspended payments.
While special forbearance is a temporary measure, a mortgage modification can be a smarter choice for those who need a long-term approach. Refinancing an existing mortgage allows for the original term to be extended, reducing monthly payments. With a more affordable monthly mortgage, homeowners can more effectively manage their debt. Those who have recovered from some significant financial problems typically qualify for this type of modification.
Foreclosure can be a frightening prospect for South Carolina homeowners. While there are many approaches that can serve as alternatives to foreclosure, they can appear convoluted and confusing from the outside. Most homeowners find that the careful guidance of an experienced counsel can help demystify the process, opening the path for them to achieve the best outcomes for their situations.
Source: FindLaw, “Alternatives to Foreclosure”, Accessed on Sept. 29, 2017
