Foreclosure Options

If you are having difficulties making your mortgage payment each month, it is important to understand that home foreclosure is not your only option. There are several different tricks to avoiding foreclosure. It is a complicated process, you should always contact a foreclosure attorney if you are having trouble making your mortgage payments each month. Losing your home is not the only option. It is important to be honest about your situation and talk to an attorney to figure out if there is away to avoid foreclosure and if that is the best move for you. If you are underwater on your home or have lost your job and now have a much lower paying job, it is possible that getting rid of your home is best for your family. However, getting rid of your home does not mean that you have to lose it through foreclosure.

To avoid foreclosure, it is vital to get help as soon as you are having trouble making your payments each month. If you are making your mortgage payments but only by not paying other bills or if you are already a few payments behind, you need to contact your mortgage holder immediately. You may be able to avoid going to foreclosure by contacting your lender and adjusting the terms of your mortgage. If you default on your mortgage, it costs your lender money to file for foreclosure and also sticks them with the responsibility of selling the foreclosure homes in order to recoup even a fraction of their money. The point is, banks do not want to foreclose if they can help it. If you are behind on your payments, contact your bank and ask for a loan modification. A change to to original terms of your mortgage may lower your payments, lower your interest rate or even allow you to skip a few payments. It may also help you save money over the life of your mortgage.

If you do not think you can afford to keep your home, avoiding foreclosure is still possible. A short sale may help you escape your mortgage obligation without resorting to foreclosure. A short sale occurs when your mortgage lender agrees to the selling of your home for less than you still owe on it. In most cases, the bank will agree to discharge the remaining balance of your mortgage. You are able to sell your home and your lender gets a larger portion of their money back compared to foreclosure. A short sale also protects your credit score from the affects of foreclosure.

Another option to stop foreclosure is by filing bankruptcy. When you file for bankruptcy, your creditors are forced to stop collecting payments from you. It is possible that a few months reprieve may allow you to come up with the money to catch up on back payments and get up to date up on your mortgage. While it is possible to stop foreclosure by filing bankruptcy, it is a very complicated process that you should only attempt under the counseling of a bankruptcy or foreclosure attorney.