Stopping a foreclosure often seems like a lot to handle when you are in the middle of financial difficulties. Borrowers can come back from the foreclosure process if they haven’t missed more than one or two payments and lenders haven’t spent too much trying to get borrowers back in line. Stopping a foreclosure is like stopping cancer, the sooner you catch it the better your chances for survival. The following article will give you some advice on stopping the foreclosure before it’s too late.
Stopping a Foreclosure
Besides selling your home to stop foreclosure, there are other options available before you lose your home entirely. One way is to contact your lender and ask about forbearance. A forbearance simply defined is when the lender will waive some of the fees you owe so that you will be able to repay the debt on time. Another method of stopping foreclosure would be refinancing. A simple search on the Internet and a phone call to a reputable mortgage company will provide you with refinancing loans that will help you pay off your debt and give you a little breathing room before the next payment is due.
Should you sell your home?
If the above options won’t work for your situation, then selling your home might be the right solution for you. If you find a buyer before the foreclosure process gets started, then you will be able to save yourself the headache of going through foreclosure and the hit it will make on your credit score. Try to negotiate a "short sale" with the lender. A short sale is when the lender agrees to discount a loan balance, allowing you to sell the mortgaged property for less than the outstanding balance of the loan. In exchange, you voluntarily turn over the proceeds of the sale to the lender in full satisfaction of the debt. The lender doesn’t have to go through the costly foreclosure process and you don’t have to suffer the consequences of it either.
If short sale is not an option, selling your home is still a viable solution to avoiding foreclosure. Enlist the help of an agent as soon as possible to help marketing your home.
Where is the first place to start?
The first place to start when wanting to stop a foreclosure is to contact your lender. Your lender will work with you on helping you figure out a way to keep your home. Solving foreclosures is what companies want to do these days, not just out of the kindness of their hearts, but out of their own necessity to keep their money and reduce the number of homes going into the dreaded "Real Estate Owned" category. Also working out loan problems looks better from a public relations standpoint and usually costs thousands of dollars less than full foreclosures and home repossessions. So if you want to stop foreclosure on your home, gather all the facts, decide whether or not to sell, and give your lender a call as soon as possible.
