Foreclosure is a legal process used by lenders to repossess a borrower’s property and then sell it to gain back their funds. A foreclosure can be processed in court (judicial foreclosure process) or without a court’s involvement (non-judicial foreclosure process). Your lender has the right to initiate foreclosure after you stop making payment on your mortgage loan. However, it doesn’t matter if your lender already initiated a foreclosure proceeding; you can still stop foreclosure and save your home. Provided a foreclosure sale has not occurred; you can stop foreclosure. Although some states permit homeowners to redeem their home after a foreclosure sale has been concluded, only a few states have such laws. After receiving the notice of foreclosure, don’t give up on your home; until your house is sold, you can still stop foreclosure. Here are some methods you can explore:
- Mortgage modification
Negotiating a loan modification with your lender is one of the best ways to stop foreclosure. When you are finding it hard to make your payment due to a reduction in your income or medical expenses, loan modification is the best way you can stop foreclosure. Having your loan agreement modified will make it easier for you to catch up with your mortgage payment and stay on track. With a loan modification, you can increase your loan’s duration, reduce your loan amount, reduce the internet rate, etc.
- Mortgage forbearance
Most lenders are willing to grant struggling homeowners mortgage forbearance for their period of hardship. Mortgage forbearance comes in various forms. Your lender can agree that you stop making payment on your mortgage for a particular time. Some could ask for partial payment, such as one-quarter of the original payment monthly, till you can make full payment. Write a hardship letter to your lender to explain your financial difficulties and how you plan to get out of it. You should also request a forbearance agreement, and the foreclosure process will be stopped.
These and many more options are available for you to stop the foreclosure process on your home. Contact your lender today and discuss more alternatives solutions they have to offer and save your home.
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