As a homeowner, there are not many things worse than receiving a foreclosure notice in the mail. If this comes, it's because you've fallen behind on your mortgage payments.
Although this will lead to a variety of challenges, there's something to remember: You don't necessarily have to give up your home. There are many ways to stop the foreclosure process, so don't hesitate to consider all your options.
- Bankruptcy: When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into place. This means your lender must stop foreclosure proceedings for the time being, thus giving you enough time to figure things out.
- Loan modification: It doesn't work for everyone, but it's absolutely worth looking into. With a modification, your lender may agree to terms that make it easier for you to stay current with future payments. An example of this could be spreading your loan out over a longer term, thus lowering your monthly obligation.
- Short sale: With a short sale, you're asking your lender to let you sell your property for less than what you owe. This often comes into play if your loan is underwater. Yes, a short sale means you'll have to move from your home. Even so, it's better than losing it to foreclosure.
These are just a few of the many ways to stop the foreclosure process. If you find yourself in this position, you shouldn't hesitate to learn more about your legal rights and the steps you can take to save your home and put this in the past.
Source: HGTV, "5 Ways to Stop the Foreclosure Process," accessed May 24, 2018