Can you Stop Foreclosure?

by Donald Hanz on Stop Foreclosures

The answer is yes, you can stop foreclosure from taking place. Foreclosures happen only when you are unable to make mortgage payments. Now this can happen due to multiple reasons like losing a job, due to a divorce, due to illness, accidents etc. So if you have just lost your job and looking for a new employment opportunity, it is a dreadful situation. On top of that if you have the nightmare of foreclosure looming ahead then it is a truly painful situation: a situation that you probably never wanted to be in the first place. So what are the options?

If you don’t want to see your property in the list of foreclosed homes then the best option is to visit your lender. Ask him/her to make a consideration in your case. There are three types of considerations that any lender can make. The first is reinstatement, the second is forbearance and the third is alternative payment option. How you work it out with you lender lies completely in you hands. Because once the pre-foreclosure period ends, you will not have the luxury of any of these options and your home will be featured in nationwide foreclosure listings.

Most of the bank foreclosures that are featured in these listings are there because either the homeowner did not think of approaching the lender, or wasn’t able to find a way out of the sticky situation. Another option that you have is to sell the home in the pre-foreclosure period to a good buyer at a good price. This will help you in avoiding foreclosure, and it will not impair your credit rating. But the only disadvantage is that you will lose your home. In the first option, if you are able to work out a new payment plan with your lender then you will avoid foreclosure and get to keep your home too.