After receiving a foreclosure notice, most homeowners panic and believe there is nothing they can do to stop it. No matter how far gone your lender is on the foreclosure proceedings; you can still stop foreclosure and save your home. A foreclosure will do more damage than just taking your home. It will also crush your credit score. Therefore, you don’t want to fold your hands and watch your home been foreclosed. Consider the three options below, and determine which you can use to stop foreclosure depending on your financial situation.
You can contact your lender to consider your loan modification application. Depending on how close a foreclosure sale date is, most lenders won’t consider your application if submitted 14 days to a foreclosure sale date. It is advisable to act early. However, it will not only save your home, but it will also help you get back on track with your mortgage payments.
Suppose your lender is making use of a non-judicial foreclosure process, filing a lawsuit against them will help you get the matter to court. Provided you have good defenses to tender in court to prevent foreclosure; you can consider this option. Filing a lawsuit can be costly. Therefore, make sure to have your lawyer go through your defense to determine if it will be worth it or not.
Filing for bankruptcy is the option used by homeowners whose home is about to be sold or out of time to try alternative solutions. If you file for bankruptcy, an automatic stay order will protect you from the creditor’s activities and help you stop foreclosure. The order is effective for a month or more, depending on the chapter of bankruptcy you filed. Filing for bankruptcy will give you the relief needed to get your finances back in contact. It is also the best option for a last-minute situation.