Four Steps To Stop A Foreclosure

When you have more debt than you can handle it can cause your entire world to turn upside down. Credit card companies have a habit of charging high late fees and raising the interest rate to exorbitant levels when payments are missed, auto lenders turn to repossession for missed car payments, and your mortgage holder will initiate foreclosure proceedings if you default on your house payments. Fortunately there are things you can do to prevent many of these things from happening, starting with finding areas to cut back on spending so your paycheck goes farther. If that does not work you can always seek professional help to get your finances in order.

When the debt in question is your home loan, here are four steps you can take to stop a foreclosure:

•         Modify your existing mortgage to a more manageable rate and lower monthly payment.

•         Refinance your home.

•         Offer the lender a deed in lieu of foreclosure.

•         See if the lender will take a short sale of the property, which means a sale for less than what is owed.

Each of these steps will stop a foreclosure, if done right. A modification of your mortgage will end a pending foreclosure upon approval of the modification, and can even cause the foreclosure to be placed on hold while you are negotiating the modification. When you refinance your existing mortgage is paid off, so the lender will no longer have the right to foreclose because they will no longer be owed a balance. A deed in lieu is an action taken by the homeowner to voluntarily sign over title to the property, back to the lender, and works when the title is clear for this action and the lender is agreeable. In this instance you will not be able to remain in your home, but you can save your credit from have a foreclosure notation. You are also not permitted to stay in your house with a short sale, but it is a good way to unload the property and pay the bank that does not include a foreclosure. You just have to be careful that the lender will not still ask you to pay the difference. And when these options do not provide the relief you require, you can file for bankruptcy. Bankruptcy puts an immediate stop to any action against you, by your creditors, to collect debts. This includes garnishments, foreclosures, collection lawsuits, and repossessions. For more information, and to find out what type of bankruptcy case you qualify to file, call our office.  

For more information about managing your mortgage payment or asking for a modification, call us today or reach us online at www.law-ri.com. We will help by looking at the facts of your case and giving you options to reach your financial goals.