Due to differences in state laws, foreclosure can be processed in court or without a court’s involvement. A judicial foreclosure process requires the lender to file a petition before they can foreclose a house. While the non-judicial foreclosure process does not require your lender to file any petition. Both forms of foreclosure process come with advantages and disadvantages. However, if your lender has decided to pursue a non-judicial foreclosure process, you have a lot of options at your disposal to save your home. You can use different forms of loss mitigation to stop a non-judicial foreclosure process. Here are some examples:
Most lenders will be willing to negotiate a loan modification with you. The reason is that loan modification makes it easier for you to start making your mortgage payments again. Your lender is only concern with making their money back and will grant your request if you act early.
Suppose you’re able to gather enough money to pay off all the missed payments with other charges, your lender will be willing to reinstate your loan. However, most lenders only accept a lump sum amount once the foreclosure has been initiated. Contact your lender as soon as you have the full payment and stop foreclosure immediately.
Most lenders won’t be willing to help you refinance your loan once a foreclosure process has started. However, some private investors are willing to help you pay off your loan plus other charges. Make sure to go through this process with an attorney to prevent falling prey of fraudster’s activities.
Instead of losing your home to foreclosure and being forced out, you can sell your home to an investor on your terms. You will be able to prevent foreclosure from damaging your credit score by selling your home. This will make it easier for you to access another mortgage whenever you’re ready to buy a new house.