Learn How you Can Avoid Losing your Home When You Understand The Process of Foreclosure
What greater achievement there is today for that average citizen than owning a home? 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. With so many families living from paycheck to paycheck, it explains the rising cases of foreclosure. But even if you are behind on your mortgage payments, it doesn’t have to result into foreclosure and you losing your home, now does it? Take some time to learn how and understand what steps you can take to avoid foreclosure.
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. The best thing about bankruptcy is the fact that it will give you some break momentarily as it will instantly stop the foreclosure process. 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. More often than not, you will be in a position to talk to the lender and agree on an affordable home repayment plan.
The other option at your disposal is to have your lender agree to modify your existing loan. Be advised that no lender in their right mind will agree to follow through with the foreclosure process if there is another way out. This explains the reason why most lenders in the right mind will always have their options open when they want to accommodate the needs of their borrowers as long as they are willing to make some form of payment? 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? Say for instance your house is valued at a very lower rate as compared to the market value, a short sale makes so much sense in such a case scenario. Before you list your house in the market, though, the lender has to approve the short sale. The last option at your disposal when avoiding foreclosure is to sign the deed back to the lending institution. While most lenders will not agree to this as it leaves them legally vulnerable should you seek to sue at a later date?