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? Unfortunately, this is not always a practical solution to living the American dream 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. Here are some simple steps to get you started and to help you learn how you can stop foreclosure when it is looming.
Check with any financial literacy website and you will discover filing for bankruptcy is a good move to stopping foreclosure. Of course, filing for bankruptcy is not a simple process but nonetheless it can give you the much needed respite. At the very least, bankruptcy will stop foreclosure immediately 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. Most certainly you will have a great opportunity to hold talks and come up with a good and manageable repayment 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. Therefore, they are always open to ideas that can help them recover their cash instead of taking the foreclosure route. Having a short sale of your home is also a great solution when it comes to avoiding foreclosure. How about you pursue this route in case all other options fail so you can avoid foreclosure all-together? A short sale will make so much sense if and when the value of your home is far much lower than the prevailing market value of the same. One thing you should keep in mind is that a short sale must be approved by the lender before you get an opportunity to have it listed on the market. Did you know you can also avoid foreclosure when you sign that title deed back to the lender? This is always an option in some cases when foreclosure is seriously looming even though majority of the lenders will be against such a move.