You are living under the fear that your house might foreclose, and that you are inherently helpless. Saving a house is a tedious task but now has become more possible than ever before. Before we discuss the specifics, let us understand what foreclosure actually means. Foreclosure is a legal method whereby the lender can recover loan payments from the borrower by getting hold of the loan collateral. If you have not been making your payments on time because of financial constraints, worry not! There are many ways to prevent your house from falling into the abyss of foreclosure. You need to be a bit street smart and manage your time both effectively and effortlessly.
Hire a Counsel
The best way to go about this is to see your "pre-foreclosure letter" in detail first. See the procedures that will be taking place prior to the act of repossession. If you can find anything that will help you get your home back, check its authenticity with a reputable law firm like Gloria Nilson and get to work! On that level, it is imperative for you to hire a counsel because banks and lenders have a way of sneaking your homes right under your nose, and you need someone to guide you through the process. It is always better to hire a counsel who can explain your financial situation a bit better and get you off the hook quite easily. An easier way to save your house is to liquidate all owned assets after purchasing the house. This can recover some of the loans unpaid, and the rest can be negotiated by your counsel, or settled for later dates.
Pre-planning is the Best Planning
The best way to prevent foreclosure and save your house is to pre-plan. If you are about to buy a house, make sure you have a backup plan for it, and you know what exactly to do in times of emergency. Save up a fixed quota of your monthly earnings to pay off your loans or keep a sum of funds in a separate bank account before buying the house in order to stay free of trouble in the times of crisis. This method will prevent panic, a chance of losing your house, and will ensure a permanent home as well. However, even if you are facing problems now, the above-mentioned details will surely help you out.
Short Sale
Another handy strategy to stall foreclosure is to go for a short sale of the house. Once your lender puts in a NOD, you have no option. However, before they schedule the house auction and you get a buyer for your home, then your lender must factor that in. It is wise to offer a short sale to your lender that they could consider as a time & effort saving endeavor. The lender will surely be selling the house as part of the auction, so if you present them with a buyer for a short sale, it will buy you time and the lender's support. You can also use this time to arrange funds to pay back your debts.
Bankruptcy
Filing bankruptcy stops the foreclosure because once the law gets to hear your bankruptcy petition, it will disallow debt collectors or creditors from recovering money until the case finalizes. Your mortgage lender will have to stop the collection process and wait for the court to decide. Usually, the law requires you to interact with your creditors in good faith after some time to come up with a productive repayment plan. It surely buys you time, so you can plan for your mortgage payments accordingly.