What Can I Do If My House Is Facing a Foreclosure?

A Foreclosure at Your Doorstep

A foreclosure occurs when a homeowner is no longer able to service their home loan adequately. This is occasioned by loss of income because of unemployment, divorce, health issues or low house value. When payments are defaulted, the loan financier possess the home in an attempt to sell it and get back unpaid dues. A foreclosure can be avoided through various mitigation means, including loan modification services.

Impending Foreclosure, What’s Next?

After receiving a Notice of Default (NOD), a house may be foreclosed within 30 to 120 days from getting the notice if the situation is not remedied. If you are going through this grace period then consider the following options to save your home.

Apply for a Loan Modification Facility – get all your financial records organized and consult the services of a loan modification specialist to get assistance on how to go about securing a home loan modification. With the assistance of a loan modification lawyer, prepare a hardship assistance letter outlining your financial situation and why you need assistance. Carry out extensive research on loan modification companies and find one that suits your situation.

Negotiate a Short Sale – find a buyer for your home before the grace period ends. Since the ultimate goal of the financier is to get their money back, it is highly unlikely that they will reject a ready buyer if available.

Declare Bankruptcy – the law prohibits any entity from collecting debt owned by a bankrupt entity. You may file for bankruptcy with the aid of a bankruptcy lawyer. It is, however, important to note that bankruptcy is just a stop-gap measure to buy you more time and it will not stop the foreclosure process indefinitely. Use this time to sell the house, find a job or secure financing.