With the economy heading into recession, interest rates increasing, and real potential for a decrease in home prices, foreclosures are on the rise. If you are in a tough spot with your mortgage, you might wonder if there is any way to avoid or delay a foreclosure. The answer is yes, up to a certain point in the process.
How to Keep Your Home from Foreclosure
The truth is that many lenders are willing to work with a homeowner that is aware of the problem and working on a solution. Keep in close communication to find the best solution for your situation. Here are some options:
· Renegotiate the Mortgage Loan: Talk with the lender to see if you can get the interest rates lowered, extend the length of the loan, or negotiate a temporary lower monthly payment. They may give you a few extra months to help you get on top of payments again.
· Pay the Outstanding Balance: Of course, one way to stop foreclosure is to pay what you owe. Perhaps you can ask a family member for help to get you back above water so you can start on a blank slate with on-time payments. If the late fees and overdue mortgage payments are what’s getting you behind, a few months of mortgage payments can be all it takes to get you back on track.
· Exchange the Deed for Payment: One option is to give up your home to pay for the balance on your mortgage loan. The lender will take the profits from your home and zero out what you owe.
· File for Bankruptcy: Filing for bankruptcy can delay foreclosure in many cases. Depending on which type of bankruptcy, you may be able to stay in your home and make a new plan to get back on track with mortgage payments.
When you work with a lawyer to avoid foreclosure, you can take the time to prepare your home for sale or find a job to get back on your feet. These options will allow you to take control of your mortgage loan without losing everything you’ve put into it.
Our team at Miles & Hatcher, LLP wants to help relieve the stress associated with outstanding mortgage payments. If you think that bankruptcy is the right option to give you time to settle your debts and start again, we can help you navigate those steps. Contact the office to set up a consultation: (909) 481-4080.