How to Stop a Foreclosure

Mortgage,News,Papers,And,Eye,Glasses,On,The,Table - Stop Foreclosure and Save Your Home Foreclosure Defense Group

Learn How to Stop a Foreclosure and Save Your Home

Are you struggling to keep up with your monthly mortgage payments? Is your home in or about to enter foreclosure? If so, you might be wondering how you can stop a foreclosure so that you can keep your property and continue paying your mortgage. Thankfully, you likely won’t lose your home overnight. This gives you some time to find your way out of foreclosure by stopping it in its tracks. Not all foreclosures can be stopped, so it’s important to understand your individual situation and the options available to you.

What is a Foreclosure?

When you are behind on loan payments, this is known as being in default of your loan. Depending on your lender, the number of payments you miss to be considered in default ranges. Most lenders have a 90-day policy for this. After this time period, you will likely be served a foreclosure notice. When you’re in foreclosure, your property is in the process of being repossessed due to a lack of payments towards your mortgage. This is legal, as when you enter a mortgage you agree to pay your lender back the amount that you borrowed plus potential interest rates as stipulated within your agreement. If you’re in foreclosure, though, there may be a way to stop it and keep your property after all.

Ways to Stop Foreclosure

There is no way to stop a foreclosure without paying money towards the total you owe from the amount you’ve missed. This is called bringing your loan to its current status. Keep in mind you don’t need to pay your whole mortgage – just the late payments. Depending on the state you’re in, you’ll likely have between 30 and 60 days of a foreclosure notice until you’re forced to leave the property. If you have your dues within this time period, it’s essential you pay them to avoid foreclosure. The following options may be available to you to stop foreclosure.

Filing for bankruptcy

Though filing for bankruptcy is a very serious move to take, it can certainly stop your home from entering foreclosure. Bankruptcy ceases a foreclosure immediately after bankruptcy is filed. Keep in mind that a lender may file an appeal with a bankruptcy court, yet this could take several months. It’s important to understand that there are two different types of bankruptcy: chapter 7 and chapter 13. The former discharges your debts, but the latter restructures your debt on a payment plan. Make sure to talk to your financial advisor about which option is best for you.

Short Sale

A short sale, as the name suggests, is the process of selling your home when you owe more on it than what the property is worth. This option is best for individuals who know their hardship is long-term and won’t be able to pay off their debt entirely. Be sure to talk to your lender about this option, as they must approve the short sale since they must agree to accept less than the loan balance left on the mortgage. Cases that are most often accepted for a short sale are those with proof of lower income resulting from hardship or due to a mandatory relocation of your job.

Loan Modification

A final way to potentially stop foreclosure is by applying for a loan modification. There is a federal law that makes it illegal to proceed with a foreclosure while a loan modification is being reviewed. These modifications are what happens when your lender adjusts your loan’s payment amount, total amount, or rate. Modifications are often granted in the case of financial hardship. This requires a lot of documentation and may take time for the lender to review.

Stop Foreclosure Today – Schedule A Free Consultation With An Experienced Foreclosure Attorney

Entering a foreclosure is a very stressful process that takes a lot of knowledge. For this reason, hiring a top foreclosure defense attorney can help you navigate the steps and better understand the ways you might be able to stop foreclosure. The attorneys at the Foreclosure Defense Group can help you get through your financial difficulties and walk you through the process of stopping a foreclosure. Reach out to talk to one of our experts today.

Follow us on Facebook!

Leave a Reply

Your email address will not be published. Required fields are marked *