Going into foreclosure is scary for anyone, especially if you don’t have a plan. However, facing foreclosure doesn’t always mean that you are going to lose your home.
Some things can be done to prevent or slow down the foreclosure process. Are you dealing with this situation right now?
Read on to discover the complete guide on how to stop a foreclosure here.
Table of Contents
Educate Yourself on How to Stop a Foreclosure
If you find yourself facing foreclosure, relax, and breathe. The first thing you want to do is educate yourself. Grab every letter you’ve received from your lender and your mortgage. Your notice of late payment may include various ways to stop foreclosure.
Check your mail for any notices about the foreclosure. It’s best to have all the information in front of you so you can be adequately informed.
Try Modifying Your Loan
A loan modification is when the lender agrees to alter the loan terms. This can help lower the payment, the amount owed, and rate to make it more affordable. Federal and state laws have protections in place when a loan modification is in review to protect your home from foreclosure.
The Making Home Affordable Program, or MHA, is a program that can help with loan modifications. This program is a government initiative that people use to avoid foreclosure. This program can significantly lower your payment or find other ways to get you out of a mortgage you can no longer afford.
If you are unable to repay your loan due to hardship there are options. Provide your lender with documentation of the hardship and tell them what is going on. They will work with you to find a solution.
Consider Bankruptcy
Yes, filing for bankruptcy does negatively impact your credit, but it could be a solution to delay your foreclosure. Bankruptcy could also help by reducing or eliminating your debt. After you file your assets will receive an “automatic stay”, which can temporarily stop a foreclosure.
Sell Your Home Quickly
Another way of stopping foreclosure is to consider a short sale. If your hardship is going to be a long-term problem you can apply for a short sale with your lender. Selling my house fast can help avoid foreclosure, but this only works if you owe more than your home is worth.
Talk to Your Lender
Getting in contact with your lender as soon as possible is one of the ways to stop foreclosure immediately. Foreclosure is a very time-consuming and costly process for a lender. Most lenders would rather work with you to find a solution than repossess your home. Honesty will go along way to getting you back to a stable financial position and help you keep your home.
You Have Options
When you are facing foreclosure it may seem like the end of the world, but remember you do have options. Stopping foreclosures may be difficult but it isn’t impossible.
Remember how to stop a foreclosure by using these five steps to get you through the process. Relax and remember that you’re not alone.
Share this article with friends or family facing forclosure and read more of our articles for the home.
