Many homeowners worry about losing their homes to foreclosure due to their failure to make payment for a couple of months. Lenders are not interested in selling your home; they only want their money back. Therefore, any way that promises to help them gain their money back will be accepted. There are many alternative solutions you can discuss with your lender to stop a foreclosure sale date. The process called loss mitigation can be used to stop or postpone a foreclosure sale date.
Loss mitigation is negotiating possible solutions with your lender to help you get back on track with your mortgage payment and stop foreclosure. There are many loss mitigation alternatives you can consider to stop a foreclosure sale date. Depending on your financial situation, consider the following options:
Contact your lender to discuss a loan modification. You can easily fill out the application and send in all the necessary documents required. A loan modification will allow you to make changes to your monthly payment, interest rate, loan duration, and other things. It will make it easier for you to catch up with your payment even when you’re going through financially challenging times.
A forbearance agreement is that your lender signs allow you to stop making payment for a particular period. Loan forbearance can also reduce the amount you pay monthly till you can start making full payment. A forbearance agreement works best if your financial difficulties are temporary and you have a solution on the way
A short sale is an act of selling your home for a lesser amount than your current mortgage loan. Although you will lose your home, a short sale still offers much more benefits than a foreclosure. With a short sale, you can easily access another mortgage loan to purchase a new house. However, you won’t be able to get another loan for years if your home is foreclosed.