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7 Ways to Avoid Foreclosure

There are several ways that you can work towards avoiding foreclosure, from the simple ideas to keep your home, to some of the more advanced ideas and strategies that you can use.  Looking to save your home from a foreclosure is never easy, but looking for as many options as possible to help you is always advisable because you will be able to see the wide range of options that you have, rather than simply trying only two or three methods.

Strategy 1.  The first and most obvious strategy to avoid foreclosure is to make your mortgage payments no matter what.  This works for some people, and may require that you move some of your bills around and always place your mortgage payment as the first priority that you have.  This can often mean juggling payments for all of your other bills, but you will feel much better knowing that your home is safe at least.

Strategy 2.  If you suspect an unrevocable problem is looming on the horizon then it is a good idea to start looking into selling your home.  If nothing else the information that you gather about the value of your home, as well as the overall condition will likely be very useful in helping negotiate an agreement with the mortgage company when it becomes necessary.

Strategy 3.  Negotiate with your mortgage company to reduce interest rates.  This is especially important if you have a variable interest rate loan.  You can sometimes help reduce the interest rate that is charged; however, in order to do this you need to make sure that you have made your previous payments on time.  It is essential to discuss an interest rate reduction quickly if you think that it may be necessary.  Most people who have the most success with this method are those who have just been hit with a huge interest rate increase. 

Strategy 4.  Look at refinancing.  There are many people who are able to refinance their homes, which will allow them to reduce the amount of their payments to a much more affordable rate.  However, this is not a guarantee and many people are finding out that they actually owe more on their houses than they are really worth!  This is a huge problem for people who are trying to refinance who have not been in a mortgage for very long.  If you have been paying on your mortgage for several years, usually at least five or more, you may well be able to refinance at a better rate.

Strategy 5.  Another option that you can look at is to talk to your lender about a hard sell.  When this happens, the lender agrees to take less than the amount that is owed in order to satisfy the mortgage as long as the reduced amount is paid in full.  This is typically very difficult to arrange, however more lenders are willing to accept this as an option as long as the buyer can prove severe financial hardship.  In a hard sell, the borrower is not held liable for any deficiency that occurs between the sale price of the property and the amount that is owed.

Strategy 6.  Another option that is being used more commonly lately is forbearance.  This is what occurs when payments are temporarily suspended.  Often this forbearance period can be used to either start making up missed payments, or even help you try to get a small bit ahead if possible on payments so you have a small cushion to help you keep your home.  Other people use the time for a forbearance to catch up on other bills so when mortgage payments are due, they are in a better financial position.

Strategy 7.  Your last option is creating a repayment plan with your lender.  In this situation, what happens is you take the entire amount that is past due and divide it by a certain number of payments.  For example, if you are 5,000 behind in payments and your mortgage company agrees to spread the past due amount over 2 years then each month you would be adding $208 to each monthly payment.  This is obviously an extreme amount that is past due, so most mortgages are not this far behind when a repayment plan is discussed.

Looking for the best option for your situation is not always simple and the best solution for your needs may very well not be the best situation for someone else’s needs.  Discovering your own personal solution may take several weeks to really explore.  However, foreclosure specialists are available that can help you uncover what your best options are. Many professionals that offer foreclosure services are used to negotiating with lenders and can get through the red tape to find a solution that works for you. Whatever your personal foreclosure situation is always face the problems head on and you can keep your options open to the strategies that are available.

 

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Whatever your foreclosure situation is time is against you. The sooner you discover your options, the easier it may be to stop your foreclosure.  Please enter your zip code in the field below to find foreclosure help in your area.

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The information found on this site is not intended to be legal advice. The foreclosure process is highly case specific and laws vary throughout the United States. Please seek professional legal counsel before entering into any contract regarding any real property or stopping the foreclosure on any real property. By using this site you consent to the terms posted here.