Learn How you Can Avoid Losing your Home When You Understand The Process of Foreclosure
If you are like most Americans, your greatest dream is to own a home, right? Even so, this achievement does not always come easy for most people. This is especially made worse by the unpredictable, economically turbulent times that have characterized the recent past. There are so many families in America today that survive on paycheck to paycheck, no wonder they are often faced by foreclosure. While you may have missed a couple of mortgage payments, it shouldn’t necessarily mean you should give up your home to foreclosure. Take some time to learn how and understand what steps you can take to avoid foreclosure.
Step one at your disposal could be to file for bankruptcy which can stop foreclosure, albeit temporarily. Of course, you should know by now filing for bankruptcy has its own serious legal ramifications and implications but it is always the best move. The beauty of bankruptcy is the fact that it instantly stops foreclosure the moment you file for it. Your lender can then appeal your bankruptcy and this process may take up to two months, which is advantageous to you as it buys you more time to put your act together. Many at times, you may have enough time to come up with an agreeable payment plan.
The other option at your disposal is to have your lender agree to modify your existing loan. Most websites online will tell you that lenders hate the process of foreclosure and will often do all that is within their means to avoid it. It is no wonder most lenders are always ready to accommodate whatever option at their disposal as long as they can avoid the long and arduous foreclosure process. You may also decide to have a short sale of your home if you are to avoid foreclosure. If all avenues seem closed and it looks like you will lose your home, you can consider short selling it. This is normally a viable option for people whose debt is far much greater than the current market value of their home. Before you list your house in the market, though, the lender has to approve the short sale. Last but not least, you can avoid foreclosure by signing the title deed back to the lender. Of course, most lenders will not agree to this option since it has serious legal ramifications but it is an option worth pursuing nonetheless.