Have you missed multiple mortgage payments? Has your mortgage lender filed a notice of default? Are you concerned that you are going to lose your home to foreclosure in the near future?
Like most people, there is nothing worse than the thought of losing your home to repossession. Not only can this be embarrassing on a personal level, but it will also have an impact on your finances.
Fortunately, there is more than one way to stop the foreclosure process. Even if you have reason to believe that you're in too deep, you need to search for a way to come out on top.
Here are some of the best ways to stop foreclosure:
- Short sale. With this, your lender agrees for you to sell your home for less than what you owe. Yes, this means you'll have to find a new place to live, but at least you don't lose the property to foreclosure.
- Foreclosure work out. Believe it or not, your lender doesn't want to repossess your home. They would rather work something out with you, so don't hesitate to contact the appropriate department to discuss your options.
- Bankruptcy. With bankruptcy, you can stop the foreclosure process from pushing forward. Here's how: Once you file, the law prohibits debt collectors from taking any additional action. This may buy you enough time to figure things out.
- Deed in lieu of foreclosure. It may not be the best option, but this gives you the opportunity to sign the deed over to the bank.
Only you know if you need to consider one of these methods of stopping the foreclosure process.
As you learn more about the pros and cons of each option, you'll gain a better understanding of what makes the most sense. For example, you may come to find that bankruptcy can save your home from foreclosure, while also helping you eliminate some of your other debts.
Take the time to better understand your situation, to learn more about your legal rights and to decide what to do next.