How to Avoid and Stop Foreclosure on Your Home
Are you a homeowner who is experiencing financial difficulties? If those difficulties are making it impossible to pay your mortgage, you may find yourself facing foreclosure. This is if you haven't already been served with a foreclosure notice. Although it is difficult to associate foreclosures with good news, there is some. In some states, it is never really too late to stop foreclosure proceedings.
Before focusing on a few of the many ways that you can stop foreclosure in its tracks, it is important to touch on prevention. There are multiple ways that homeowners, just like you, can avoid foreclosure. At the first sign of financial trouble, homeowners should schedule a meeting with their lenders. Lenders do not want a home to enter into foreclosure, so many are willing to work with borrowers. The sooner you ask for help, the better your chances are for receiving it.
In addition to speaking with your financial lender, there are other steps that you can and should take. Did you lose your job? Whether you were laid off or fired, you need to start looking for work right away. In the time being, you may want to apply for part-time jobs. Of course, lenders want all of the money that they are owed, but some are willing to temporarily accept smaller payments. Selling a few of your valuables, prioritizing your spending, and eliminating unnecessary purchases can free up money that can and should be applied to your mortgage.
As for how you can stop foreclosure, the best chances of you doing so are in the pre-foreclosure stages. This is before the courts have approved the proceeding and ruled in favor of the mortgage lender. Until this point in time, you are still the resident and owner of the home in question. If you do not feel that you can come into money, either by getting a second job or a loan from those that you know, now is the time to try and sell your property. Many in your shoes will try to sell their homes independently, but you can benefit from the services of a professional real estate agent.
When selling your home, whether you do so independently or with a real estate agent, you will want your home to be reasonably priced. The better the price, the quicker your home will sell. With that said, do not lose money. You need to make sure that you have enough money to pay off your mortgage in full. Not only that, you need to examine your moving expenses. How much do you need to rent an apartment? What about moving costs or storage fees? Only sell your home when you are able to make a small profit, even if that profit will be spent to provide you with new shelter.
Even if your home is slated to be sold at an auction, know that you may be able to stop it from happening. Some states have redemption laws. They provide homeowner, like you, with a grace period. This period allows you to get your mortgage back in good standing. When you do so, the foreclosure proceedings will stop, even if an auction has already occurred.
As a last resort, you may want to schedule an appointment with an attorney that specializes in foreclosures and real estate. Many will suggest filing for bankruptcy. Some states offer protection to homeowners. This protection may excluded their home as an asset or at least temporarily stops the foreclose proceedings.
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