One thing that you should know is that the total consumer debt at the end of 2018 was almost $4 trillion as this shows the financial straits people are in across the United States. You find that when the money is tight mortgage repayments can be a real struggle and this can lead to foreclosure. The good news is that there are ways in which you can prevent the foreclose and save your home which we are going to discuss herein.
The first tip is to work it out. One thing that you will have to do is to speak to the lender before the embarrassment. It is essential to note that most lenders don’t want to take your home and they might be willing to negotiate your terms and find a solution. Here you will have to react quickly and talk to them about your options. Where you will have to look out for forbearance, debt forgiveness, and repayment plans.
The next thing is to seek a buyer. Here you will have to find someone who is willing to buy your house. You find that in the end the lenders will still sell your house and you would have saved them the hassle of looking for the buyer. For that matter, you will have to speak to the estate agent so that you can know how valuable your house is and how long it will stay in the market. One thing that you should know is that if you have a ready buyer the lender is likely to stop the foreclosure.
The other thing is deed-in-lieu. Here the homeowner signs the deeds of the house back to the lender. Of which the house will be effectively given to them, the mortgage is forgiven and the foreclosure stopped. The good news is that it will also help in protecting your credit rating.
Apart from that, there is also a short-sale success. This means that you can buy or sell real estate at a price that falls below the mortgage amount owed by the current homeowner. Remember to negotiate with the lender to see if it is an option. You find that this is vital as it will help them avoid the time and expense of repossessing the house.
Last but not least, you should file a lawsuit. Filing lawsuit against the lender is another way of preventing foreclosure. Remember that this is only liable when you don’t own promissory note, violated the homeowner’s bill of rights or didn’t follow the requisite steps in the process of foreclosure. You will only have an advantage if they are foreclosing outside the court system.