How to Stop Foreclosure?
In today’s housing market, it can be difficult for homeowners in danger of defaulting on mortgages. The foreclosure procedure can be completed in a matter of days. If you skip just one payment and don't take action, you may find yourself homeless in less than a month in some jurisdictions. If you’re concerned that you may default on your mortgage, there are ways you can stop foreclosure. Even though it may be challenging, you have several options to avoid foreclosure.
Seek professional guidance> Contact a local loan counselor who can find options to stop the foreclosure. They are most familiar with the industry and can be a good source to point you in the right direction to avoid foreclosure.
Work with your lender> Your lender may be able to provide you with options such as a forbearance which allows you time to catch up on your payments before taking legal action. Another way your lender can help you is thru a loan modification. Talk to them about possibly getting a more favorable interest rate or more time to pay your loan back in the long run.
Refinancing> Inquire about a refinance loan. You may be able to add your back payments to your existing loan balance. Be aware that your monthly payment may be higher due to the increase in balance.
Whichever option you decide, make certain it’s the right one for you. At the end of the day, you want peace of mind.
If you’re already in the process of foreclosure or facing foreclosure, and none of the options above will work for you, you have another chance to stop foreclosure:
Selling Your Home> Another option to stop foreclosure is to sell your home. You can work with a good real estate agent to ensure that you’ll get the best value. Just make sure your real estate agent works quickly to sell your home so you have time to sell before the bank forecloses on it.
Short Sale> If you owe more than your home’s current market value, you may want to consider this option. A short sale is when the lender forgives a portion of or lowers the existing loan amount in order for the property to be sold at current market value.
Sell to a Cash Buyer> If you’re pressed for time, you can find a local cash buyer to purchase the property from you. They can typically close quickly and purchase the property in its as is conditions.
Stopping a foreclosure can help you avoid the negative impacts it will have on your credit report and once your finances are stable, you can be on your way to homeownership again. This is why it’s important to stop foreclosure as soon as you can.
