Suppose homeowners are well informed about foreclosure is processed, and the options available for them to stop foreclosure, the rate of homes being foreclosed will reduce. Many homeowners lose their homes because of this ignorance. You should note that laws guiding foreclosure differ with states, and what works in Texas might not work in Florida. Therefore, it is vital to know the procedure to be well equipped to stop foreclosure. Your lender can’t just initiate foreclosure at will; you must have missed multiple mortgage payments. The federal law requires that your lender gives you 120 days after you first missed a payment before foreclosing your home. During these 120 days, also known as the pre-foreclosure period, your lender will contact you to discuss alternative solutions.

If you fail to maximize this period, your lender will process to initiate a foreclosure proceeding. Depending on the state your property is located, the foreclosure process can be judicial or non-judicial. A judicial foreclosure process implies that your lender files a lawsuit before they can foreclose your home. A non-judicial foreclosure process happens without the court’s involvement. How you will stop foreclosure depends on which type of foreclosure process your lender is using. However, requesting loan modification and filing for bankruptcy are two options that have helped many homeowners stop foreclosure proceedings fast.

Loan modification involves having a negotiation with your lender to make changes to your loan agreement. The changes can reduce the interest rate on your loan, increase your loan duration, etc. With a loan modification, you will not only stop the foreclosure process, but you will be able to catch up with your mortgage payment more quickly. Bankruptcy works best for homeowners who can’t find a way to make payments and look for relief. Filing for bankruptcy will help you stop foreclosure immediately; it could be temporary or permanent, depending on the types of bankruptcy chapter you filed.

Contact your lawyer today to find out more alternatives to stop foreclosure proceedings and save your home.