How to Avoid Mortgage Foreclosure

How to Avoid Mortgage Foreclosure

Mortgage foreclosure can take two forms. One, it can be a court process whereby the lender sues the borrower and proves to the court that the borrower has defaulted to make payments towards the mortgage. In ruling, the court may compel the borrower to pay the remaining mortgage fee failure to which a statement could be issued to foreclose the mortgaged property. The other form that foreclosure could take is non-judicial, where things are settled amicably among involved parties.

Either way, in case you are finding it hard to pay your mortgages on time, running away is not the solution. Your best bet would be to arrange a meeting with your mortgage lender and explain to them your financial status that makes it hard for you to make payments on time. The lender, seeing as it is they wouldn’t want to lose everything, and because the process of foreclosure is one that involves a lot of risks and takes a lot of time, may review the situation and act accordingly. Your lender could request you to pay part of your normal monthly payments and then gradually make up for the late payments in the course of the following months. Alternatively, your lender could modify the loan terms and conditions to suit both parties.

In case you agree with the new terms, both parties will sign a new contract and all foreclosure proceedings will come to a stop. Modifying the terms of a mortgage is one of the greatest ways to get assistance with late mortgage payments so that they can be more affordable. In case your lender doesn’t want to make any beneficial arrangements with you, you can always consult foreclosure services, which you can get online, in your locality, or even in churches. Foreclosure services will offer you expert advice, negotiate with your lender on your behalf and even help you in making the late mortgage payments.

In case you are left with no options, you might consider selling your property because when you sell your property in cash, you can take the money and pay your lender, and then channel the little remaining savings you have on finding another affordable home. When all else fails, your best option would be to declare bankruptcy. This however should be your last resort when all else fail. Ensure you consult a professional bankruptcy attorney to see any available options that you might have. When you file for bankruptcy under chapter 13, you can be able to retain your home but under specified qualifications. Chapter 7 on the other hand will obliterate the debt that you have but will have you vacate the property.

In case you are facing foreclosure, you shouldn’t avoid foreclosure and such like notices you get from your lender. Rather, face the problem head on. While this could not guarantee that your property will not be foreclosed, at least you will be ready for what awaits you ahead.