A common way to avoid foreclosure is to modify an existing loan or refinance with a second mortgage.
Malden, MA (PRWEB) October 03, 2011
The local team at Paul T. Murphy Insurance Agency knows that obtaining proper, comprehensive Massachusetts homeowners insurance is the best thing residents can do to protect their property investments. Owning property is a significant milestone for many; making it all the more critical to protect the physical structure, one’s liability and also the loved ones who have helped transform a house into a true home. However, securing a dependable home insurance policy can’t eliminate all residents’ concerns. The team of coverage experts has taken it upon themselves to better educate local homeowners on what they can do to prevent and protect themselves against loss.
The down economy has led to a widespread fear of foreclosure, a problem that has affected even the most financially responsible individuals across all areas of the state. Foreclosure can leave individuals without a home and with poor credit, which makes it even less likely that they will be approved for another mortgage in the future. In order to help their neighbors, the team at Paul T. Murphy Insurance Agency, Inc. wants to offer the following tips on how to avoid foreclosure:
- Although missing mortgage payments is less than ideal, many homeowners have several options that may help them get out of the red. For instance, an early 401(k) withdrawal does involve tax penalties, but it may be worth it in the long run if a lender is threatening foreclosure.
- Everyone knows that unexpected expenses can lead to temporary financial strain, so if a homeowner knows that he or she will be able to repay missed bills within a few months it may be a good idea to consider negotiating with a lender. This can help delay the time before a bank files for foreclosure, which involves a waiting period and lots of paperwork. One way to negotiate is to ask if it would be acceptable to repay debt in two installments over the course of two months.
- A common way to avoid foreclosure is to modify an existing loan or refinance with a second mortgage. While the former can allow homeowners more time to make smaller payments, they should be aware that the latter can create even more financial problems in the case of default.
Foreclosure can be devastating for any family, especially those that have taken measures to protect their homes by obtaining the homeowners insurance MA residents need. However, it’s important for these individuals to know that there are several techniques that may help them navigate their way through this type of situation.
About Paul T. Murphy Insurance Agency, Inc:
Proudly located in Malden, Massachusetts, Paul Murphy Insurance has evolved into one of the most well-respected full-service insurance agencies—committed to providing unparalleled customer service and superior coverage strategies. At Paul Murphy Insurance, the team goes far beyond being your typical Mass insurance agents—the agency prides itself in being active, dedicated members of the local Malden community! Paul Murphy Insurance strives to keep all its insurance consumers up-to-date on much more than just the MA insurance industry; and aims to be not only a premier insurance resource but a trusted community leader, too!