There are many ways to stop foreclosure on a home. However, that does not mean that saving your house will be easy. On the contrary, it will take a lot of effort on your part to stop the foreclosure process. So you need to make sure you are up to the challenge. If you are not prepared to do a lot of hard work to save your home, you will probably end up losing it.
Don’t despair, though. Your situation is not hopeless. There are several things you can do to try to save your home. Here are some options you may want to consider. Each of them are described in more detail in other articles on this site.
All right, I know you are thinking, “Duh! If I could do that, I wouldn’t be in foreclosure.” I do know that. However, I want to make sure you have considered whatever options might be available to you to make some extra money. There are many ways to earn a little extra cash if you really need to.
If you can still qualify, you may be able to stop your foreclosure by refinancing with another mortgage company. Your chances for approval will be better if you are still up-to-date on your payments or at least not too far behind. However, it may be possible to refinance if you are further behind if you have a good explanation for falling behind.
Stop Foreclosure by Filing for Bankruptcy
Filing for chapter 13 bankruptcy can be an effective way to stop foreclosure on your house. This strategy is not without its pitfalls though. Make sure you consider all of the pros and cons carefully before choosing this option.
Some banks are notoriously hard to work with. Others will be a little easier to talk to and come up with a plan. None of them will go out of their way to make it easy on you, though. If you want the bank to modify your loan, be prepared to do a lot of paperwork and spend a lot of time on the phone.
Depending on the foreclosure timeline in your state, you might have time to list and sell your house before the foreclosure sale. This strategy will have a better chance of success if you have more time to work, so you should get your home listed as soon as you realize that you are not going to be able to save it.
Stop Foreclosure by Doing a Short Sale
If your house is not worth what you owe on it, you might be able to get the bank to accept less than what is owed as a full payoff if you can find someone to buy it for the current market value. This is called a short sale.
A real estate investor may be able to offer a solution that will keep your home from going through foreclosure and help salvage your credit rating. Be cautious when dealing with investors, though. Make sure you are working with someone who is experienced and has the knowledge and resources to successfully fulfill his end of the bargain.
Credit counseling agencies—even non-profit ones—charge for their services, so it’s best to reach an agreement with your lender on your own if you can. However, if you are unable to do so, it is possible that a credit counselor may have better luck negotiating with your lender than you did.
All of these methods can be used to stop foreclosure on a house. Not every option will work for everyone. You need to evaluate your situation to determine which choice is best for you.