The foreclosure process is a legal process by which your lender seeks to regain your property, which will be sold off to gain their funds back. A foreclosure process is initiated after you stop making payment on your mortgage. The federal law mandates that your lender waits for 120 days after the first missed a payment before initiating foreclosure. The period of 120 days can be used to stop foreclosure and save your home. Here are some of the steps you can take during this period to stop foreclosure:
Aside from giving you 120 days to make your payment and save your home, the law also requires your lender to discuss available loss mitigation alternatives with you. These loss mitigation alternatives help you get back on track with your mortgage payment and make it easier for you to stay on track. Some of the available options include loan modification, reinstatement, refinancing, short sale, etc. All of these options might not work for you, but you should be able to find one that fits your financial situation well. Contact your lender as soon as possible to make inquires, and you are a few steps away from stopping foreclosure.
After determining the options available from your lender, you should discuss with your attorney to decide on which option is best. This is because state laws differ, and what is allowed in some states can be limited in your state. Talking with your lawyer about your financial situation and the available solutions will save you many headaches trying to figure things out. Also, you will need your lawyer’s service to help you through the process of stopping foreclosure.
Once you’ve decided which of the solutions you want to go for, you shouldn’t waste any more time. Take action as soon as possible. The more you wait, the more charges will be added to your account. Take action today.