Going through a foreclosure is not a thing of joy for any homeowner. The fear of losing your home within a few weeks due to missed payments can be a terrifying thought. Most homeowners do their best to make a payment on time and keep to their loan agreement. However, some circumstances occur that are beyond control and can lead to financial difficulties. Some homeowners can get out of such challenges within a few months, but only to have foreclosure waiting for them. It does not have to be like that; there are many options for you to explore to prevent foreclosure. Contact your lender to discuss alternative solutions after you missed one or two payments. Don’t wait till your lender initiate foreclosure before you take action. Here are some ways to stop foreclosure on your home:
- Loss mitigation
Your lender is mandated to discuss loss mitigation alternatives with you before initiating foreclosure. Loss mitigation is the process by which lenders and borrowers discuss solutions to help the borrower make payment in times of financial difficulties. The process is to find a neutral ground that benefits the lender and the borrower. When attempting to stop foreclosure, there are various loss mitigation alternatives you can negotiate with your lender. Here are some examples:
- Loan modification
- Short sale
- Deed in lieu
- Forbearance agreement
- Loan reinstatement
- Loan refinancing, etc.
Depending on your financial situation, carefully consider the above options, and determine which is best for you. Research in-depth about the options you choose before contacting your lender. Have a mediator or your lawyer help you with the negotiating process for the best result.
- File for bankruptcy
If none of the loss mitigation alternatives works for you, you can file for bankruptcy to stop foreclosure. The order given by the court upon the submission of your petition stops all creditor’s collection activities immediately, and this includes foreclosure. Filing for bankruptcy can help you discharge your loan or help you reconstruct a new repayment plan, depending on the chapter of bankruptcy you filed. Contact your attorney to take action on time.
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
