about to lose your home? Foreclosure can be scary for anyone. Getting the
notice should not make you despair and give up that easily. You can do certain
things that can slow down the process as you try to get back on your feet.
Foreclosure occurs when you breach the contract of paying back your mortgage in
full. A lender can repossess your home and look for ways to recoup the
investment if you are unable to settle your loan.
may take some time before repossessing your home. They give you a two week
grace period for you to make repayments. Foreclosure proceedings only begin
after 90 days if you still don’t make it pay for the mortgage. The process of
repossessing a home is long since it can take up to a year. You should take
advantage of this duration to make the necessary changes so that you can save
your home from being repossessed. Use the following techniques to prolong the
You need to
learn more about the process of foreclosure. Instead of panicking, take your
time to read through the documents you get from the lender. Most notices
regarding late payments contain details on how you can prevent foreclosure. You
may also receive mail that informs you of the pending legal action as well as
the foreclosure process.
the process is handled in your particular state. In some states, the lender
must sue you in court before beginning foreclosure proceedings. This only
happens in judicial foreclosure states. Understanding the laws of your state
can help you estimate how much time you have to get a solution.
Talk to the lender
touch with the lender to try and find common ground. Repossessing a home is a
tedious process for all the parties involved. Open communication with your
lender can help you find a solution to the problem. A lender can provide
different options such as refinancing, repayment plan or loan modification.
is when a lender gives you a new loan with new terms and interest rates to help
you cover the payments that you missed on the mortgage. You can also work
together to come up with a repayment plan that suits your budget for you to
start making payments gradually. They can also modify your loan by changing the
terms of the mortgage to make it more manageable. For instance, they can reduce
the interest rates or extend the duration of payment.
Think about filing for bankruptcy
other options do not work, filing for bankruptcy can prevent you from losing
your home. Seek guidance from a bankruptcy lawyer or attorney to take you through
chapter 7 and 13 to delay foreclosure.
for bankruptcy, the court is forced to issue an order for relief which includes
automatic stay. This can make your creditors cease any collection activities
instantly. The court legally postpones the foreclosure for a couple of months
so that you get enough time to fight for your home as you look for alternatives
to make repayments.