Are you afraid of losing your home because of foreclosure? If you have received a Notice of Default, you will have very little time and limited options to avoid foreclosure. Now is when you should take action to retain ownership of your home. Here are some tips that can help you to avoid foreclosure and save your home.
ACTIONS TO TAKE BEFORE FORECLOSURE HAPPENS
Check All of Your Documentation
You should obtain all documents from your lender and read every detail of it. Do not hesitate to ask questions if there is some information that you do not understand.
Know Your Rights
A lot of valuable information on how you can prevent foreclosure, which can be found on the Internet. You can also seek the help of legal counsel to advise you of your rights.
Take It Seriously
Do not waste any time. The more time that goes by means it will be harder to stop the foreclosure, and you may lose your home.
Continue to Have Communication with Your Lender and Negotiate with Them
The only thing that your lender wants is your payment, not your home. Lenders can lose money when they foreclose on a home. You can seek a compromise, or they may have other options for you.
Know How to Prioritize Your Spending
Organize your spending. Get some help putting a budget together to eliminate wasteful spending and free up money for getting your mortgage caught up. Check your spending and cut those expenses that are not essential to your basic living.
Use Your Assets
If you have any assets that you can sell (for ex. a second car, jewelry, gadgets) in exchange for cash, get them together and list them for sale. You can try to get an extra job or take on more hours at your present workplace. Any extra cash that you can bring in and pay down on your mortgage will show your lender that you are serious about repaying your debt.
STOP THE FORECLOSURE PROCESS
Have you already received a Notice of Default? If your lender is already increasing their collection efforts and you do not have enough money to pay the mortgage, you can consider the following options to put an end to the foreclosure process:
Consider A Short Sale
If your home is valued less than the amount you owe, a short sale is an option. You would work with a real estate agent and your current mortgage holders to sell the property to a buyer at a price below the mortgage loan balances and ask that the lenders forgive the remainder of the debt owed.
File Bankruptcy
You can file bankruptcy to stop the foreclosure process. Bankruptcy eliminates the majority of your debts through a court negotiated repayment plan if you can provide evidence of hardship and lack of assets to repay the debt. Your home may still be repossessed and sold in the bankruptcy proceedings to pay the debt owed, but all collection efforts will cease.
File A Deed In Lieu Of Foreclosure
A Deed in lieu of foreclosure essentially means you are giving up your home and transferring all titles or documents to your lender. This document is signed by the homeowner and notarized by a notary public. This option is rarely used because lenders want the borrower to exhaust all other options before a Deed in Lieu of Foreclosure is pursued.
You need an experienced debt and foreclosure attorney to advise you and act in your best interests. Contact Debt Rescue Law for a FREE consultation at (833) 707-1234.
