What is a Foreclosure and How to Save Your Home from it?

A foreclosure is the closure of your home when you are not able to pay your mortgage loans. It also refers to the legal procedure where the owner of the property (you) lose the rights of owning your home. Mortgage payments are not the easiest to make, especially if you are facing a financial crisis. Despite how beneficial a mortgage is when purchasing the property, it can be your downfall if you don’t pay the loan off. So, there is a need to have the right partners with you, including a loan modification firm to help you manage the situation.

Understanding the Foreclosure

As mentioned above, a foreclosure is the confiscation of your home due to your failure in making mortgage repayments. As the borrower of the loan, it is a must for you to pay  the mortgage loan off as per the agreement with the lender (the bank in this case). Foreclosures are not so common but there are a few people who may be caught up in between. You need to understand that your property is the collateral to the loan you have received and in case of defaulting, you will be prone to facing a foreclosure. So what does a foreclosure entail? It commences when you don’t make payments on the mortgage. Then comes a public notice (notice of default) if the missed payments have been recorded for 3-6 months. The public notice is forwarded to you and a period of pre-foreclosure (2-4 months) is attained. This is where you may save your home from a foreclosure. After that, there is an auction and finally the post-foreclosure period.

Saving Your Home from a Foreclosure

If you do not want to lose your home during the pre-foreclosure period, you can contact loanmoddepot.com for advice and solutions. They have a team of loan modification lawyers that is well-equipped for the job and you will be assured that you will be able to finally save your home. They will be mediators between you and the bank. The possible solutions to saving your home include finding a potential buyer, filing a bankruptcy petition, signing back the deed to the bank, among other options.