Owning a home is one of the greatest achievements for the average American citizen, one who is living their American dream. Unfortunately, this is not always a practical solution to living the American dream for most people. This is especially made worse by the unpredictable, economically turbulent times that have characterized the recent past. With so many families living from paycheck to paycheck, it explains the rising cases of foreclosure. While you may have missed a couple of mortgage payments, it shouldn’t necessarily mean you should give up your home to foreclosure. You can learn how to stop foreclosure through the following tried and tested steps and measures.
Check with any financial literacy website and you will discover filing for bankruptcy is a good move to stopping foreclosure. Be advised though that filing for bankruptcy is a very serious move but when all else fails, it may be your only option. The beauty of bankruptcy is the fact that it instantly stops foreclosure the moment you file for it. Note, however, that the lender may go ahead to appeal the bankruptcy, a process that may take up to two months hence give you more time to think straight. Most certainly you will have a great opportunity to hold talks and come up with a good and manageable repayment plan.
The other option at your disposal is to have your lender agree to modify your existing loan. Be advised that no lender in their right mind will agree to follow through with the foreclosure process if there is another way out. Therefore, they are always open to ideas that can help them recover their cash instead of taking the foreclosure route. Having a short sale of your home is also a great solution when it comes to avoiding foreclosure. There is no point of sticking to a non-functional option that may lead to you losing your home if you can take up the short sale route. A short sale will make so much sense if and when the value of your home is far much lower than the prevailing market value of the same. Now, your mortgage lender has to approve a short sale before listing it in the market. Last but not least, you can avoid foreclosure by signing the title deed back to the lender. While most lenders will not agree to this as it leaves them legally vulnerable should you seek to sue at a later date?