If you are a homeowner who is facing a possible foreclosure, you may not know what to do or where to turn. You might not know what options you have. What you need right away is information on foreclosures. With the right information it is very possible that you will be able to avoid foreclosure and keep your home. Avoiding foreclosure can mean keeping your home and maintaining a good credit rating.
If you know you may be facing foreclosure, it’s wise to quickly contact the mortgage lender, which is often your bank. Doing this before the issue of foreclosure arises is best. But even if you’ve already been notified about a potential foreclosure, don’t wait to set up a meeting with the chief loans officer. Your lender will be more willing to work with you to avoid foreclosure if you can show that your financial troubles are temporary and that you intend to return your mortgage to good standing.
But be aware that even if your mortgage holder is prepared to work on a solution with you, you have to decide if keeping your home would really be in your best interest. If your financial problems are going to continue in the long term for one reason or another, it may be best to try to sell your home before it enters foreclosure.
Talk this over with your lender. They aren’t anxious to take over homes through foreclosure because they usually lose money doing so. They may give you some extra time to proceed with a pre-foreclosure sale. Pre-foreclosure sales are better for the seller because you can list the home through a real estate company or even try to sell it yourself.
Another alternative you have available is to hire a lawyer to work with you during foreclosure. It’s best to use the services of an attorney who specializes in real estate and foreclosure. Attorneys can advise you on what options you have and what steps you can take, as well as the advantages and disadvantages of pre-foreclosure sales.
In some states, it is possible to stop foreclosure by declaring bankruptcy. In these states, primary residences cannot be sold as an asset, so this would save your home, at least temporarily. However, be aware that declaring bankruptcy can create as many problems as it solves. If you are considering bankruptcy, be sure to work through a legal firm.
Yet another option is to take advantage of your state’s redemption law. These laws vary from state to state. But generally, what they do is to provide a grace period where you can reclaim your home, even if it’s already been sold at a foreclosure auction. To reclaim your home, you must act within a specified time frame and the mortgage must be returned to good standing by making all past-due payments. If you can do this, the foreclosure proceedings will be stopped and you will get your home back.
Not all states have redemption laws. If you live in one of these states, you do have the option of trying to purchase your home back, once it has been foreclosed. You would do this by placing a bid at the foreclosure auction. Unfortunately, the highest bidder wins and this may even be your lender. They won’t let the house go unless the bids are high enough because they stand to lose the difference between what is bid and what is owed on the mortgage. If the lender purchases your home, at a later time it will be put on the market as an REO (real estate owned) home.
So, if you are facing foreclosure, it is important to quickly get as much information on foreclosures as possible. That way you can examine your options and make the right decision for you and your family.
If you are a homeowner who is facing a possible foreclosure, you may not know what to do or where to turn. You might not know what options you have. What you need right away is information on foreclosures. With the right information it is very possible that you will be able to avoid foreclosure and keep your home. Avoiding foreclosure can mean keeping your home and maintaining a good credit rating.
By: Carolyn Langlois About the Author:
