Sometimes, things don’t go as planned. Despite the best intentions, there are times when it’s impossible for homeowners to fulfill their mortgage obligations. When your misfortune turns into a foreclosure notice, these tips will help you control the situation and realize the best outcome.
Work With Your Lender
Open the lines of communication with your lender to stall the foreclosure process.
- Call your lender and explain your predicament. Give them specific details about the nature and estimated length of your circumstances. Many lenders are willing to temporarily modify payment terms to temporarily accommodate certain hardships.
- Apply for a loan modification. If your credit rating has improved or market values have shifted in your area, it’s possible to negotiate friendlier terms that lower your monthly payments.
- A forbearance allows you to pause or drastically reduce your mortgage payments for a short period. However, you’ll have to pay everything owed in a lump sum or via larger monthly installments.
It is in your lender’s best interest to keep you in your home. Contact them early to avoid unnecessary issues.
Take Legal Action
Keep the law on your side to ensure you have the best chance at keeping your home.
- If you believe your foreclosure is unlawful or in error, you will have the chance to present your case in court. Respond in writing to the official foreclosure complaint as soon you receive it. This eliminates quick default judgments.
- Talk to a lawyer about your case. Even if you can’t afford to retain one for the trial, invest in a short sit-down session with a knowledgeable legal representative to get the facts straight and ensure you’re ready to present your defense.
- Personal bankruptcy is a final strategy for saving your home. Most chapter 7 and 13 filings allow you to keep your primary residence while reorganizing your debt.
Foreclosure is less of a threat when you understand the laws and procedures that govern the process. Educate yourself on your legal options.
A temporary setback doesn’t have to ruin your entire life. With these tips, you won’t have to lose your dream to foreclosure.
Contact your trusted home mortgage professional to discuss current financing options.