Falling Behind on Mortgage Loan Payments?
The decision to foreclose a home takes time and is only used as the last resort if all other methods fail. As a homeowner, it is important to understand the requirements and conditions of your mortgage plan so that you can stop a looming foreclosure.
There are several ways in which you can stop a foreclosure or buy yourself some time before it is implemented.
- Get Up-to-Date – resume mortgage payments and get back on track with your loan; after all, this is what the bank is a looking for.
- Forbearance – if you are unable to get the loan back on track immediately, visit your lender and discuss the possibility of revising the terms of your loan within a 3-to 12-month grace period before resumption.
- Refinancing – secure a new home loan from a new lender or the same lender to pay off your existing mortgage in full. This will automatically release you from a foreclosure.
- Loan Modification – negotiate a favorable loan modification option with a certified loan modification expert to reduce your financial obligation and make payment of the loan amounts much easier.
- Quick Cash Sale – sell off the house to a willing cash buyer and pay off the full mortgage before the property is foreclosed. This will not only save your credit rating but will also leave you with some extra money to spare.
- Negotiate a Short Sale – negotiate with your financier the possibility of selling the home to a buyer willing to pay less than what you owe. This type of sale releases the property from a foreclosure immediately.
- File for bankruptcy – bankruptcy temporarily stops the potential debtors from demanding payment from you. Although this is not a permanent solution to a foreclosure, the court might order a new repayment plan for you so as to clear the outstanding mortgage balance; thus avoiding the foreclosure.