It can be challenging (and somewhat scary) to stop foreclosure – you may have to deal with lawyers, bankers and other professionals invading your home and your privacy. In fact, although there are many people who claim they can stop foreclosure, sometimes it can’t be avoided. If you’re facing foreclosure on your home, there are steps you can take right now to help stop foreclosure and boost your chances of reaching a better solution:
● Call your lender right away. The very first thing you should do when you think you’re going to be behind on your mortgage is to call your lender. Don’t wait until you’re already behind – call them right away. If they have advance notice that you’re facing hardship, they’re far more likely to work with you to stop foreclosure and achieve workable solutions like home loan modifications.
● Home loan modifications. After calling your lender, the first thing you should do is look into home loan modifications. While they can be unpleasant, home loan modifications are far better than having to sell your home – or even worse, having it taken away in a foreclosure. You have tons of options for home loan modifications, so work with your lender to figure out what the best choice is for you and your situation.
● Sell your home. If you can’t reach a deal with the bank, you may have to sell your home. In a good market, this can be a fairly easy option and may help you stop foreclosure, since you won’t be in possession of the property anymore. While you’d still be losing your home, you’re losing it on your own terms – and you may even be able to make a profit on it.
● Short sales. If your lender is unwilling to consider home loan modifications, short sales may be a good option for you. In a short sale, you sell the home for less than market value and turn the money over to the bank. In exchange, they forgive your debt. While it still hurts your credit, it’s not nearly as bad as foreclosure.
While you may be able to stop foreclosure, it’s not possible in every situation. Make sure you make the best of your situation by attempting to work with your lender as soon as possible. Try as many options as you can before foreclosure – even if it’s drastic, you may still be able to avoid the problems that foreclosure can bring.
