If foreclosure has been on your mind because you’re in jeopardy of losing your home, there is information available that can help you avoid – or at least slow down – the process. Because so many people have lost their homes in the past year, it’s more important than ever to learn what it is and how it can affect you.
What is Foreclosure?
A foreclosure occurs with a home owner is unable to keep up with his or her mortgage loan payments resulting in the lending company regaining possession of the home. There are a number of reasons that people can become the victim of the process, including negligence, losing a job, or even getting sick. The good news, however, is that there are ways to avoid the process from occurring if you act fast.
How to Avoid Losing Your Home
Here are a few steps you can take if you’ve fallen behind in your mortgage loan payments and fear your lending company will be coming for your home soon:
- Talk to your lending company. One of the best ways to avoid losing your home is to go straight to the source that wants to take it. Believe it or not, these companies would much rather make money on the property than take it from you. So if you try to negotiate, they may refinance your loan, suspend principal payments, or even let you miss a few.
- Sell your property. Selling your home may not be the option you were looking for, but it can get the burden of debt off of your shoulders. If you try a short sale, however, keep in mind that you’ll be selling your property for less than the amount you owe.
- Sign a deed-in-lieu of foreclosure. If you take this option, you deed the home back to the lending company and alleviate yourself of the mortgage loan payments. However, keep in mind that this option has the same credit report repercussions as a standard foreclosure.
If you really want to avoid foreclosure, it can be done. There are government programs to take advantage of as well as other ways to work with your lending company if you feel you can’t keep up with your mortgage loan payments. So if you find yourself in this challenging situation, don’t give up; instead, conduct research on the best resolution for you and your family.