Facing the possibility of foreclosure on your home can be terrifying, but it is not inevitable. Several resources and options exist to help you keep your home and there are ways to minimize your loss if staying in your home is no longer feasible.
Here’s how to stop the process before it’s too late.
What Is A Home foreclosure?
Foreclosure is the legal process by which mortgage lenders and banks use to reclaim properties when homeowners stop making payments, especially after an extended period of time. If a borrower stops making payments, oftentimes due to some kind of financial hardship, the lender will seek to earn back what they are owed by taking the home back and selling it. When foreclosed, the homeowner is evicted and the foreclosure goes on their credit report, which can be devastating to one’s credit score.
How To Avoid Foreclosure?
Ultimately, the only way to avoid foreclosure is to continue making your monthly payments. Refinancing may be an option to help restructure your mortgage in way that makes it more affordable every month.
6 Ways To Stop A Foreclosure
- Work out a solution with your lender.
- Ask for mortgage forbearance.
- Consider a loan modification.
- Consult a mortgage counseling agency with the Department of Housing and Urban Development (HUD).
- Do a short sale of the property.
- Sign a deed in lieu of foreclosure.
If you are facing foreclosure and are considering selling your property or one of these other options, reach out to our team and we would be happy to discuss your options with a free consultation.