It's scary to receive a notice of foreclosure, as this means your lender is inching toward repossessing your home. Although you're in a difficult spot, there are many ways to stop foreclosure.
By taking the right approach, you increase the likelihood of saving your home. Here are three of the best strategies:
- Foreclosure workout: This allows you to work directly with your lender to settle on a plan that keeps you in your home. For example, they may agree to add missed payments onto the back side of your mortgage.
- Bankruptcy: With bankruptcy, the automatic stay stops foreclosure. This gives you time to assess your situation, communicate with your lender and hopefully find a resolution. Keep in mind that bankruptcy won't stop your foreclosure forever. Instead, it's a temporary solution.
- Short sale: This is when your lender lets you sell your home for less than what you owe, without any responsibility to make up the difference. You don't get to keep your home, but you are able to avoid the foreclosure process.
Many people facing foreclosure think that it's best to hide from their lender. They assume that doing so will give them enough time to figure everything out.
Rather than take this approach, stay in constant contact with your lender. This shows them that you want to make things right, which improves the odds of them helping you.
With so many foreclosure defense strategies to consider, there's an option that's perfect for you. Learn more about each one, compare the pros and cons and keep your legal rights in mind as you move forward.
Attorney Advertising Disclaimer: Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization: Not actual clients in pictures and videos. -- Thomas C. McBride, attorney in Alexandria, LA.