This article is about Non-bankruptcy Options To Stop Foreclosure. For many, a foreclosure notice implies confiscation of their property and something that simply cannot be avoided unless they file for bankruptcy. In addition, filing for bankruptcy can only offer temporary relief from your problems. Contrary to common myths, the truth is that foreclosures can be avoided using non-bankruptcy options that need to be considered immediately after being notified about the default on your mortgage.
Reinstatement option is an uncomplicated option wherein the homeowner settles the arrears that include back mortgage payments, late fees, and filing fees to steer clear from the foreclosure.
In order to redeem the loan, you need to settle the entire loan, usually done through refinancing the mortgage. Refinancing is easier if you apply for a loan with a cosigner or a friend or relative who can help you in you hour of need and save your house.
Deed in Lieu of Foreclosure
This typically means, that the owner turns the ownership rights to the bank or creditor and escape the trauma of going through a foreclosure. Usually an option of the last resort, this option is open to you until the time of actual foreclosure.
Causing legal delay
Foreclosure dealings can easily be procrastinated if not completely avoided by finding some inaccuracies in the default amount to buy some time. Usually, a mortgage negotiation professional would be the best person to advise you about the number of ways in which you can delay a foreclosure.
Renegotiate with the bank or mortgage company
This is perhaps the easiest and unfortunately the most overlooked option homeowners can opt for to escape a foreclosure. Lenders are in the moneymaking business and the interest that you pay on their money is what keeps them going. Owning and selling a house is the last thing on their mind besides its too time-consuming considering the legal hassles involved.
Any new plan that can help borrowers to get their loan on track is welcomed by lenders with open arms. Considering your financial situation, your lender may be willing to bring down your loan amount (its safer than losing money altogether in case a borrower files for bankruptcy) or offer spread the loan amount over a longer period to reduce your monthly payments. These monthly payments may also include a certain amount of the missed payments so that the lender does not lose his money and even you can continue to stay happily in your house.
Sell your property
If nothing works, this could be the best option, as you can clear your debt and also end up with additional money in your pocket. With so many investors looking for foreclosure properties, selling your house won’t be a problem at all.
It may not be possible for you to negotiate with your lenders, however, you can count on a professional foreclosure negotiator to do the job. Just hand you’re your financial details, and see how he can find a way out. There’s nothing worse you can do than just sit back and relax waiting for the bank to take away your house. So, take timely action and explore the various options to stop foreclosures before its too late.