Three Different Methods to Stop Foreclosure on a Home
If you are about to lose your home to foreclosure, you may be searching desperately for a solution that will allow you to save your home. I wish I could tell you the task you face is easy, but it isn't. You may be facing an uphill battle, but there are three ways that you might be able to stop foreclosure on your home.
The first way to stop foreclosure is by refinancing your mortgage. If you choose to do this, you will be using the money from the refinance loan to pay off the original mortgage. Therefore, the foreclosure proceedings will stop because the debt is now paid off. You now have a new mortgage in its place.
Since you must qualify for a new mortgage in order to refinance your home, it makes sense that it would be easier to be approved if you start applying for a refinance loan early. In order to improve your chances, you should start applying even before you fall behind on your mortgage payments if possible. Refinancing before you get into trouble can head off a foreclosure before it starts.
The second way to stop a foreclosure is by filing for bankruptcy. Some homes can be saved from foreclosure through chapter thirteen bankruptcy reorganization. This route does not always work though, and the bankruptcy can stay on your credit report for up to ten years. If you want to get through your current situation with the least amount of damage to your credit report, you should steer clear of bankruptcy.
If your concern is more for remaining in your current home than keeping your credit report from getting too filled up with negatives, this solution might be right for you. You should talk about your situation with a qualified bankruptcy attorney who has plenty of experience representing people who are going through foreclosure. You may be able to get a free consultation so that you don't have to pay the attorney unless you go through with the bankruptcy.
The third method that can stop foreclosure on a home is loan modification. That is the process of making payment arrangements with your lender that change the payment terms on the loan so that you are able to make the payments. Most lenders require you to be behind on your payments before they will talk to you about a loan modification. However, if you wait too long they will not work with you either.
Negotiating a loan modification can be difficult, but there are experts available who can help you get your loan modification approved. If you are a do-it-yourself kind of person, you can purchase a book that tells you what to expect and explains how to fill out the forms that your lender will require.
Hopefully, one of these three methods will help you stop the foreclosure on your house so that you can remain in your home. Research all of the methods carefully to determine whether they will help you with your situation. Each method has its own set of risks, and only you can decide which course of action to take.
The first way to stop foreclosure is by refinancing your mortgage. If you choose to do this, you will be using the money from the refinance loan to pay off the original mortgage. Therefore, the foreclosure proceedings will stop because the debt is now paid off. You now have a new mortgage in its place.
Since you must qualify for a new mortgage in order to refinance your home, it makes sense that it would be easier to be approved if you start applying for a refinance loan early. In order to improve your chances, you should start applying even before you fall behind on your mortgage payments if possible. Refinancing before you get into trouble can head off a foreclosure before it starts.
The second way to stop a foreclosure is by filing for bankruptcy. Some homes can be saved from foreclosure through chapter thirteen bankruptcy reorganization. This route does not always work though, and the bankruptcy can stay on your credit report for up to ten years. If you want to get through your current situation with the least amount of damage to your credit report, you should steer clear of bankruptcy.
If your concern is more for remaining in your current home than keeping your credit report from getting too filled up with negatives, this solution might be right for you. You should talk about your situation with a qualified bankruptcy attorney who has plenty of experience representing people who are going through foreclosure. You may be able to get a free consultation so that you don't have to pay the attorney unless you go through with the bankruptcy.
The third method that can stop foreclosure on a home is loan modification. That is the process of making payment arrangements with your lender that change the payment terms on the loan so that you are able to make the payments. Most lenders require you to be behind on your payments before they will talk to you about a loan modification. However, if you wait too long they will not work with you either.
Negotiating a loan modification can be difficult, but there are experts available who can help you get your loan modification approved. If you are a do-it-yourself kind of person, you can purchase a book that tells you what to expect and explains how to fill out the forms that your lender will require.
Hopefully, one of these three methods will help you stop the foreclosure on your house so that you can remain in your home. Research all of the methods carefully to determine whether they will help you with your situation. Each method has its own set of risks, and only you can decide which course of action to take.
About the Author:
Once a bank has initiated foreclosure proceedings, it is almost impossible to get them stopped. However, there are three different ways that it may be possible to Stop Foreclosure on your home. The first being Foreclosure Help.