How to Stop a Foreclosure

How to Stop a Foreclosure

Losing a beloved home due to an unpaid mortgage is one of the most devastating things any homeowner can go through. If you are currently going through foreclosure, you may ask yourself if you have any options for preventing it from going through. The truth is that there are ways to stop it that many people may not know about.  Here is a list of things you can do to stop a foreclosure.

Negotiate With Your Lender

The foreclosure process is difficult, long, and expensive both for homeowners and mortgage lenders. Therefore, most lenders are ready to negotiate and find a solution in order to avoid the process. Once you have missed a mortgage payment, do not wait too long and call your lender to explain the situation. Most likely, your lender will offer you one of the following options:

  • Refinancing. You will be offered a new loan with new terms and interest rates in order to cover the missed mortgage payments and what you owe on the property. This is a good option because it does not affect your credit score, and you will be given a chance to decrease monthly payments. 
  • Forbearance. This is a process where a mortgage lender agrees to suspend monthly mortgage payments for a certain period of time, which should help you build back your finances. 
  • Repayment plan. Your lender will work out a special payment plan that will fit your budget so you can start making payments. 
  • Loan modification. The lender will change the terms of the loan, including the length, amount due, and interest fee. This makes monthly mortgage payments more manageable. 

File for Bankruptcy

Bankruptcy will affect your credit score negatively, but it will also help to delay the foreclosure process. The moment you file for bankruptcy, the foreclosure is automatically frozen. By using a bankruptcy option, you are given an opportunity to pay down an outstanding debt through a special structured payment plan. However, since it is still a tricky solution, it is highly recommended to consult a bankruptcy lawyer before pulling the trigger on this method. 

Get a Deed in Lieu of Foreclosure

Getting a deed in lieu of foreclosure is giving your lender ownership of your property through a short sale process. However, not all lenders like and agree on this option because sometimes buyers sue after the fact and claim that they did not really understand what they were doing. 

Consult a Foreclosure Professional

You always have the option to discuss your financial issue with a foreclosure expert, who will try to find the best option for you. Foreclosure professionals know about many programs and initiatives, the purpose of which is to help homeowners struggling with their mortgage payments. For example, the Home Affordable Modification Program helps to reduce mortgage payments by up to 40%. Another program called Making Home Affordable helps those who lose their jobs and are not able to make monthly payments. 

Sell Your Home Fast

If you know that you cannot avoid foreclosure, then the best option for you is to sell your property fast. The best thing about this method is that you can sell your home immediately, and your credit score will not be affected. All you need to do is find a cash buyer in your area, who will purchase your property immediately and as is, meaning that you do not have to make any repairs or fixes. 

If you own a property in Stockton, CA, or any other surrounding area, and you want to sell it as quickly as possible, Frank Buys Houses is here for you. We are a local home investment company that has experience in working with foreclosed homes and knows how to help you.  We buy all types of properties, in any condition, location, or circumstance. We are ready to purchase your home as is and pay you cash immediately. By selling your home to us, you can avoid a foreclosure that could destroy your credit score for seven years. If you have any questions, feel free to contact us at any time.