You find that the total consumer debt at the end of 2018 was almost $4 trillion which is an indicator of the financial straits people are in across the United States. You find that when the money is tight mortgage repayments can be a real struggle and this can lead to foreclosure. The best thing is that there are steps that you can take to prevent foreclosure and save your home, read more here.
The first tip is to work it out. In this case, you will have to talk to the lender instead of waiting for embarrassment. You find that lenders don’t want to take your home and they might be willing to negotiate your terms and find another solution. Therefore, you should take to them about the loan modification as soon as possible. Some of the modifications that you can opt for are forbearance, debt forgiveness, and repayment plans.
The next thing is to seek a buyer. Where you will have to find someone who is willing to buy your house. This way you will be saving the lenders the hassle of looking for a buyer because after all, that is what they will do. In this case, you will have to speak to the estate agent so that you can know how valuable your house is and how long it will stay in the market. You find that with a buyer in the bag the lender is likely to stop the foreclosure.
Besides, we also have deed-in-lieu. Here the homeowner signs the deeds of the house back to the lender. In this case, the house will be effectively given to them, the mortgage is forgiven and foreclosure stopped. This will also help in protecting your credit rating.
Apart from that, there is also a short-sale success. This means that you can buy or sell real estate at a price that falls below the mortgage amount owed by the current homeowner. But it is vital that you negotiate with the lender to see if it is an option. You find that this is vital as it will help them avoid the time and expense of repossessing the house.
Besides, you should also file a lawsuit. You can as well prevent foreclosure by filing a lawsuit against the lender. You find that this is the best option when you don’t own promissory note, violated the homeowner’s bill of rights or didn’t follow the requisite steps in the process of foreclosure. Typically, it will work if they are foreclosing outside the court system.