You are viewing the printer-friendly version of Prevent ForeclosurePrevent ForeclosureEvery year 8 million homeowners are seeking help preventing foreclosure proceedings. Many homeowners are not aware that they can prevent foreclosure and save their house. They have up until an hour before the auction takes place. There are various options available. We will examine the most popular options.The most efficient way is to reinstate the loan. Pay the payments that are behind, including additional late charges or attorney fees. When a lender forecloses on a property, it is expensive. Try to get forbearance. The lender would rather work out some sort of deal rather than foreclose. Talk to the lender and see if they are will to work out a plan that outlines a way to get your mortgage current. This agreement will depend on the situation and the lender. They may be able to do a temporary reduction or a suspension on your payments. If you have a FHA or VA government type loan, you may qualify for even more options. Some attorneys may advise a home owner to file for bankruptcy. This is a legal way to avoid foreclosure. However, you may be stuck with bad credit for 7 years after the process. Sell your home. The problem with selling your home is that if you list with an agent and your home doesn't sell, you are still on the foreclosure clock. The best way to sell your home in this situation is to contact a real estate agent that is familiar with foreclosure investing. They may be able to put you in contact with investors that will be happy to purchase your home. When you voluntarily give the house back to the lender, this is called deed in lieu of foreclosure. However, the lender doesn't have to accept it. You should discuss this with the lender. If they refuse the deed they are required to file a Notice of Non-acceptance with the county recorder. Doing nothing is a trap that most homeowners fall into. You have options, you just need to talk to someone and find out the best options for your situation. aa |