If you have a missed out your mortgage payments for 3-6 months, you will receive a Notice of Default (NOD) from your lender. This is often when most people panic. But you should know that even at this stage there is plenty that you can do to address the situation. Here we shall take a look at 7 ways to stop foreclosure fast:
- Get in touch with your lender, present your financial difficulties and offer to negotiate. Note that foreclosing on your home would cost the lender extra money and also keep the asset locked up for quite a bit longer. Hence, most would be willing to negotiate.
- Seek loan modifications options. If you are unable to pay higher instalments, you may try to negotiate for a loan modification to reduce the above-market interest rate or increase term in exchange for lower instalment. Hiring a loan modification consultant from www.loanmoddepot.com would help you get the required guidance.
- If you were not intending to stay in the home and were trying to sell anyway, you can try to get a buyer for short sale and negotiate with the lender to agree to accept the sale amount and wipe your mortgage.
- You can get a buyer and negotiate with the lender to let the buyer assume all of your remaining debt related to the mortgage.
- You can lease out your home and add the rent towards your mortgage payments. Ensure that the rent and any advance or deposits are enough to sufficiently cover for instalment and your cost of living elsewhere.
- You can file for bankruptcy, which will impose a temporary stay on any recollection or foreclosure attempts by any lenders.
- If you believe that your lender is not following the proper regulations required for foreclosure, you can file a lawsuit and have the court impose a stay on the foreclosure.