Facing foreclosure in Austin can be very stressful and time-consuming. Having a financially difficult time doesn’t mean you should abandon your home once a foreclosure process is initiated. You are not the only one struggling, and your lender will not want what happened to Detroit to happen in your state. The reason being that they will be unable to make their money back if homeowners keep abandoning their homes. Therefore, lenders in Austin are always willing to negotiate with homeowners finding it hard to make a payment on their mortgage. However, most lenders won’t grant your request if you are acting fee days to a foreclosure sale date. The earlier you take action, the higher your chances of stopping the foreclosure process on your home. Here are some options you can negotiate with your lender:

Loan modification

File out a loan modification application and send it to your lender as soon as possible. Loan modification helps you make changes to your loan agreement such that you will be able to catch up with your mortgage payments more easily. Some states only allow a loan modification request to be granted some weeks before the scheduled sale date. Therefore, acting on time is very important if you want to save your home.

Short sale

If you wish to let go of your home, abandoning the house is not a good choice. A foreclosure will damage your credit score, and your lender can still sue you for a deficiency judgment later. The best way to avoid those consequences is to sell your home. List your home as soon as you know, foreclosure is inevitable, and send in a short sale request to your lender as soon as possible. Make sure to have your lender sign an agreement that ensures they won’t sue you for a deficiency judgment later.

Mortgage forbearance

You can contact your lender to request a loan forbearance agreement. Write a hardship letter to help your lender understand your current situation and how you plan to solve the problem. Most lenders will be willing to suspend your loan payment for a particular period. You can use the period to get your finances back under control and get back on track with your mortgage payment.