3 Tips on How to Stop Foreclosure

Losing your home is arguably the most devastating experience that you may have to endure. At some point in your life, you may face sudden extenuating circumstances that will compel you to stop making timely mortgage payments. If you have defaulted in your mortgage payment, or you are worried that you might fall behind soon, you will want to take all the possible steps to keep your home. The worst mistake a homeowner will make is avoiding their lender, which often prompts the lender to file a notice of default. Whether your lender has already filed the notice or not, here are a few tips that may assist you to Stop Foreclosure.

Negotiate with your lender

As soon as you realize that you are having trouble paying your mortgage, it is essential that you talk to your lender and explain your situation. Up until the moment when your home is scheduled for auction, you will find that your lender would rather work out a compromise that will allow you to get back on track with the mortgage, as opposed to taking your home in a foreclosure. Your lender may be interested in arranging a repayment plan that corresponds to your financial situation, or even provide you with a temporary reduction or suspension of your payment.

Getting a pre-foreclosure sale

This arrangement will allow you to sell your property prior to the foreclosure date. If you wait until the foreclosure is carried out, you may have to sell your property at an amount that is far less than what is necessary to pay off your mortgage loan. This arrangement is especially possible if your loan is at least two months delinquent and you are able to sell your house at a short notice, within 3-5 months.

Deed in lieu of foreclosure

This is a tactic that is often employed as a last resort. You may opt to voluntarily surrender your property to the lender; while this will not save your house, it will not damage your credit ratings as much as a foreclosure will.

If your lender is employing non-judicial methods to foreclose, you may be able to delay, or even stop the foreclosure by filing a lawsuit against the lender to challenge it. However, it is crucial that you be able to prove your case, thus you should seek legal assistance. If you need assistance to Stop Foreclosure, contact Hitchcock & Associates, P.C.

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