5 Strategies to Avoid Foreclosures on Your Pittsburgh Home

The prospect of foreclosure is financially and emotionally devastating to families. The foreclosure process can go on for months or years, prolonging your anguish and mental burden.

But foreclosure is not the end of the road. You have several options in Pittsburgh to avoid foreclosure and get your financial life back on track. In this post, we share five ways to prevent foreclosure in Pittsburgh.

Strategy #1: Make a Deal with Your Lender

Making a deal with the lender is called a foreclosure workout. You meet with your lender, tell them your financial situation, and figure out the best way to repay your mortgage. Generally, lenders do not want to foreclose, and foreclosures are their last resort. They are likely to provide you with a deal to help repay your mortgage. You may get a temporary reprieve on your mortgage payments until your finances are sorted. Or they can come up with a restructuring or catch-up strategy to reduce the mortgage amount and help you get back on track.

Strategy #2: Get Help from the Government

The Federal Government’s Housing and Urban Development department has a couple of programs to help homeowners facing foreclosure. They also offer counseling options to help you understand your financial situation. They can also help you better understand the foreclosure time frame and the different steps you can take to get out of the problem.

Strategy #3: Tighten Your Belt

Another way to get out of foreclosure is to sort out your finances. Take a hard look at your income and expenses and design a budget. Spend money only on the essentials like mortgage payments, food, and utilities, and find other places to reduce your spending. For example, you can avoid eating out or terminate your entertainment subscriptions to reduce your expenses. Use any extra money you save to repay the mortgage.

Strategy #4: Rent Your Home

Another way to avoid foreclosure is to rent out your home. Use the rental income to pay for your mortgage and insurance. While renting your home, you may have to look for temporary living arrangements. You can move in with relatives, get a roommate, or live in other properties that are more affordable.

Strategy #5: Sell Your Home

The easiest way to avoid foreclosure is to sell your house to cash home buyers in Pittsburgh. Look for ads announcing, “We buy houses in Pittsburgh in any condition.” Cash home buyers can purchase your house in any condition and financial situation. You can use the proceeds from the sale to repay your mortgage while making a tidy profit to meet other expenses.

These strategies can help minimize the long-term effects foreclosure can have on your finances and resolve your pending payments. However, not all of these strategies will apply to your situation. Find which method will work best for you.