Facing eviction from your home can be a terrifying experience. The idea of being out on the street, moving back in with family or going back to being a renter is not appealing options for most people. After all, if buying your home feels like a privilege you can be proud of, then losing your home to eviction feels like a disgrace.
Typically, a person does not get an eviction notice unless they are behind certain payments on their mortgage. Thus, even a sizable loan is not likely to completely pay off the sum total of your outstanding mortgage payments in one fell swoop.
On the other hand, many banks are becoming increasingly reasonable with their mortgage customers due to problems in the home mortgage industry as a whole. It just may be the case that being able to pay for one or two back-payments will be enough to put off the eviction indefinitely. Sometimes, a bank just needs to be able to see that you are really trying to stay in your house and are willing to cooperate.
If you are saying to yourself, "I need a personal loan to stop an eviction," here are 5 steps to take to getting funded:
1. Understand what a personal loan can do for you:
A personal loan is a short-term loan for which you can qualify after going through an application process. It differs from a home loan or an auto loan in that with a personal loan, you are not specifying exactly how you will be using the money. Rather, you can use it for anything you like.
2. Understand the downside of a personal loan:
The only downside to a personal loan is that it is a short-term loan, so you should have a plan together for how to repay the loan within a short period of time of say 1-2 months. Also, a personal loan often has a high interest rate associated with it. Often, personal loans are taken out by making out a check to the lender against a future paycheck.
3. Secured or unsecured: what's your fancy?
There are two main types of these loans: secured and unsecured. The main difference is that with secured loans, you have to put up some type of collateral against the loan. In exchange, you get a lower rate that with an unsecured loan which does not require collateral.
4. Check your credit score:
Before filling out any applications, it is always a good idea to go ahead and check your credit score before applying. Run your report with TransUnion, Experian and Equifax since your FICO score will vary from one to the next. At the very least, you will know where you stand in terms of your credit. And, doing this will give you the chance to protest and fix any glitches you find there.
5. Apply to multiple trusted personal loan lenders:
To get the best rate for your loan, make sure you apply to many lenders, not just one or two. You may be surprised how much the interest rate and other loan terms can vary depending upon which lender you try. You will never you if you get the best-possible rate without doing your homework.
Take these 5 steps to avoid eviction by taking out a personal loan.