Understand How the Foreclosure Process is To Avoid Losing Your Home
What greater achievement there is today for that average citizen than owning a home? Even so, this achievement does not always come easy for most people. The reason for this is attributed to the harsh economic times that have rocked the world in the past decade or so. There are so many families in America today that survive on paycheck to paycheck, no wonder they are often faced by foreclosure. Now, you may be behind on your loan repayments, but this shouldn’t be construed to mean you are a candidate of foreclosure process, now does it? Here are some simple steps to get you started and to help you learn how you can stop foreclosure when it is looming.
How about you file for bankruptcy and avoid foreclosure as your first step to stopping your lender from foreclosing on your home? Of course, you should know by now filing for bankruptcy has its own serious legal ramifications and implications but it is always the best move. The best thing about bankruptcy is the fact that it will give you some break momentarily as it will instantly stop the foreclosure process. Your lender can then appeal your bankruptcy and this process may take up to two months, which is advantageous to you as it buys you more time to put your act together. Many at times, you may have enough time to come up with an agreeable payment plan.
The other option at your disposal is to have your lender agree to modify your existing loan. Most websites online will tell you that lenders hate the process of foreclosure and will often do all that is within their means to avoid it. This explains the reason why most lenders in the right mind will always have their options open when they want to accommodate the needs of their borrowers as long as they are willing to make some form of payment? You may also decide to have a short sale of your home if you are to avoid foreclosure. If all avenues seem closed and it looks like you will lose your home, you can consider short selling it. A short sale will make so much sense if and when the value of your home is far much lower than the prevailing market value of the same. Now, your mortgage lender has to approve a short sale before listing it in the market. Last but not least, you can avoid foreclosure by signing the title deed back to the lender. While most lenders will not agree to this as it leaves them legally vulnerable should you seek to sue at a later date?
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