– Getting Started & Next Steps

Essential Tip for Preventing Foreclosure and Saving Your Home

You find that the total consumer debt at the end of 2018 was almost $4 trillion which is an indicator of the financial straits people are in across the United States. When the money is tight it can be hard to repay the mortgage loan which might make you lose your home. This should not worry you anymore because there are options which can turn the situation around as discussed below.

To start with, you should work it out. One thing that you will have to do is to speak to the lender before the embarrassment. It is true that lenders don’t want to take your home and they will be willing to negotiate your terms and find a solution. Here you will have to react quickly and talk to them about your options. Some of the modifications that you can opt for are forbearance, debt forgiveness, and repayment plans.

Apart from that, you should seek a buyer. This will require you to find someone who is ready to buy your house. With this, you will be saving the lenders the hassle of looking for a buyer because after all, that is what they will do. In this case, you will have to speak to the estate agent so that you can know how valuable your house is and how long it will stay in the market. One thing that you should know is that if you have a ready buyer the lender is likely to stop the foreclosure.

Besides, we also have deed-in-lieu. Here the homeowner signs the deeds of the house back to the lender. Of which the house will be effectively given to them, the mortgage is forgiven and the foreclosure stopped. The good news is that it will also help in protecting your credit rating.

The next tip is a short-sale success. Short sales are when you can buy or sell real estate at a price that falls below the mortgage amount owed by the current homeowner. But it is vital that you negotiate with the lender to see if it is an option. You find that this is vital as it will help them avoid the time and expense of repossessing the house.

Last but not least, you should file a lawsuit. You can as well prevent foreclosure by filing a lawsuit against the lender. You should know that this will only work when you don’t own promissory note, violated the homeowner’s bill of rights or didn’t follow the requisite steps in the process of foreclosure. Typically, it will work if they are foreclosing outside the court system.