Can you imagine what it would feel like to lose your home to foreclosure? Like most, the thought alone is enough to get you upset.
Despite the fact that there are some benefits of foreclosure, such as the fact that you no longer have a mortgage payment, most people agree that it is best to fight against this.
Once you know the strategies for stopping foreclosure, you can take the steps necessary towards doing so with success. Here are several ideas to consider:
- Negotiate with your lender. This is the best place to start. Your lender may be willing to negotiate with you in an attempt to help you stay in your home. For example, a loan modification could lower your monthly mortgage payment. As a result, you may now be able to make your payment in full and on time.
- Refinance your mortgage. Believe it or not, this strategy is often times overlooked, despite the fact that it is one of the easiest to implement.
Examine your current situation, including the value of your home, what you owe, and how far behind you are on payments. From there, contact your lender to let them know of your intentions to refinance. They will help you better understand what you need to do and whether or not this will help you avoid foreclosure.
Note: if you are behind on your current mortgage, which is always the case when dealing with foreclosure, this is something to discuss with the lender you have contacted for the refinance.
- File for bankruptcy. Even if this doesn’t allow you to prevent foreclosure altogether, it could go a long way in delaying the process.
With Chapter 13, for example, you can escape your trouble by making payments to your lender through a repayment plan.
If your lender is moving forward with foreclosure, don’t give in just yet. There are many ways to avoid this, including the three strategies above. Contact us to discuss all your options and to decide which steps to take next.