Going through a foreclosure is a stressful experience and, once it begins, you likely believe that there is no chance of keeping your home. However, there is a way to put a stop to the foreclosure process.
Below is a list of tips that and strategies you can employ to stop a foreclosure on your home:
- Foreclosure workout: Most lenders will give you the chance to work out a compromise with them, even up until the moment your home is scheduled for auction because it would be better for them if you could resume paying your mortgage than it would be to take your home in a foreclosure. Never underestimate their willingness to work with you on this issue.
- Short sale: When your lender files a Notice of Default (NOD), they will then schedule an auction. However, if you receive an offer from a buyer first, your lender will have to consider it. When faced with a reasonable short sale offer, it is likely your lender will see this as an opportunity to save time, effort, and the hassle in trying to find a qualified buyer. Keep your eyes peeled for a buyer if your house is on the market, even after the lender begins the foreclosure process.
- Bankruptcy: When you file for bankruptcy, this temporarily halts the foreclosure process since federal law prohibits any debt collectors from continuing any debt collecting activities. Since foreclosure is a collection activity, this will freeze the process. That said, when you get to court, the bankruptcy trustee’s role will only be to mediate between you and your creditors and you will not be able to stop the process entirely, though you will be able to buy some time if you need to get a new job or recover from a disability that put you out of work.
- Deed in lieu: If your home is facing foreclosure, you can voluntarily sign the deed to the home back to the bank. This generally has the same effect on your credit that a foreclosure would and, oftentimes, lenders are hesitant to take a home back through a deed in lieu of foreclosure for numerous reasons, which is why they are rarely granted. If you have a skilled attorney on your side, however, you might still want to try it.
- Lease-option: Through the lease-option, the buyer would become your tenant, allowing you to continue to own the property until the buyer saves enough down payment money, improves their credit, or sells their other home. In some cases, a buyer can make a one-time, lump-sum payment upfront, paying you to for the option to purchase your home. To effectively use this option and stop the foreclosure process, you will have to negotiate the lease payments to cover all or most of your mortgage payment as well as property tax and insurance obligations.
Skilled Foreclosure Attorney in Worcester
If your home is facing closure, this is undoubtedly a difficult time for you and you are likely looking for ways to remedy the situation. The first thing you need to do is hire an experienced foreclosure attorney to help you proceed with the best option for your specific circumstances. At the Law Office of Robert W. Kovacs, Jr. in Worcester, our skilled team of foreclosure attorneys is dedicated to helping clients obtain the financial relief they need to lessen their burdens. Do not resign yourself to defeat! There are other options out there that can protect you from losing your home.
Get started on your case today and reach out to our law firm at (508) 926-8833 to schedule a free initial case evaluation to learn more about what we can do for you.