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 good news is that there are ways in which you can prevent the foreclose and save your home which we are going to discuss herein.
One thing that you should do is to work it out. This will require you to speak to the lender before the 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. For that matter, you should talk to them about your option as soon as possible. Where you will have to look out for forbearance, debt forgiveness, and repayment plans.
Apart from that, you should seek a buyer. Where you will have to find someone who is willing to buy your house. You find that in the end the lenders will still sell your house and you would have saved them the hassle of looking for the buyer. Here you will have to speak to an estate agent to see how valuable your house is and how many days they will expect it to stay in the market. It is essential to note that the lender is likely to stop the foreclosure if you have a ready buyer.
The other thing is deed-in-lieu. In this case, the homeowner will sign the deeds of the house back to the lender. Of which the house will be effectively given to them, the mortgage is forgiven and the foreclosure stopped. The good news is that it will also help in protecting your credit rating.
Besides, we have short-sale success. Short sales are when you can buy or sell real estate at a price that falls below the mortgage amount owed by the current homeowner. It will be better to negotiate with the lender to see if it is an option. This will help them to avoid the time and expense of repossessing the house.
Last but not least, you should 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.