You’re worried about what to do now that the bank has foreclosed on your house.

Well…

when you read this entire article to the end, you will learn…

The five “SURE-FIRE” ways to avoid foreclosure on your home

Before you read, you need to first understand that each state has its own laws. So you need to get yourself familiar with those local laws before taking any steps. You may need to hire a lawyer or professional. I am not a lawyer. Until then, here is some valuable info to prepare yourself.

It doesn’t matter which of the following methods you choose to avoid foreclosure. Just take IMMEDIATE ACTION!!! Also make sure that you keep a detailed record of everything that you do. This documentation could  strengthen your case as you fight for your home. 

1. Try to Work Something Out with Your Lender

You need to understand that lenders hate foreclosures as much as you do. Not only does it cost more, but the reputation that comes with kicking a family out of their homes can ruin a company. So it’s pretty standard for lenders to work out a deal that can help the borrower pay their debt. Whether it’s rescheduling your payment plan or extending the term of your loan, lenders would be more willing to do this than running around housing courts paying expensive lawyers.

2. Perform a “Short Sale”

What is a “short sale”? A pre-foreclosure sale is also known as a “short sale”. It means selling your house at a price less than you owe before the bank can take it from you and auction it off. To short sell your property, you need to take approval from your lender. Your lender will decide whether short-selling your property is worth it or not. Short-selling your home is going to be a fantastic opportunity for you if you want to save your credit score. So, you better do everything in your power to convince your lender to short sell your home.

3. Declare Bankruptcy

Declaring bankruptcy can be one of your last resorts. If all else fails, you can always file for bankruptcy. This is a sure fire option to put your impending foreclosure on hold. Filing for bankruptcy generates an “automatic stay,” which halts any collection process which is due. Including foreclosure.

If you decide to go this route, you should hire a bankruptcy attorney. To guide you through the process. This is important because there are a few types of bankruptcy that you need to choose from.

4. Deed in Lieu of Foreclosure

Deed in lieu of foreclosure is the same as a foreclosure. There are no considerable differences between the two. The only one is in case of deed in lieu; you give ownership of your home on your own accord. The benefit of going this way is the discretion that comes with it. You won’t have any cops knocking on your door to kick you and your family out the “hard way.” It also takes the same amount of damage when it comes to your credit score. Which is little to none depending on the terms.

5. Loan modification 

Loan modification is a revision to your mortgage loan’s original terms. A loan modification doesn’t pay off your current mortgage and replace it with a new one, unlike a refinance. Instead, it immediately alters the terms of your loan. 

The number of years you have to pay back the loan may be extended, your interest rate may be lowered, and/or your principal may be forbeared or reduced. Your monthly payment may be lowered as a result of the modification to an affordable level. If you receive a loan modification offer, make sure you understand how it will affect your monthly payments and how much you will ultimately owe in both the short and long-term.

Don’t wait until the last moment

When you know you might face foreclosure your best bet is to face it head on instead of a “wait see what happens” attitude. There are several ways you can stop your foreclosure from ever happening. If you are having sleepless nights worried about your home being taken from you call 617-807-0503 to speak with a specialist.