How To Stop Foreclosure Without Filing For Bankruptcy

How To Stop Foreclosure Without Filing For Bankruptcy

It is human nature to search for the easiest and most convenient option in any situation. The same applies to mortgage and methods to stop foreclosure. Foreclosure will deprive you of a home and adversely affect your credit rating. In addition, it has the potential to damage you emotionally and scar your social standing. The prospect of foreclosure and losing possession of a home unnerves many people. Instead of logically thinking of ways to wriggle out of the situation, many people opt for an easy way out by filing for bankruptcy. It would be pertinent to remember that filing for bankruptcy to stop foreclosure should be the last resort and done only if no other alternative way of resolving the issue is working out. Your lender has given you a loan to purchase a home. If your current economic condition makes it impossible to pay the loan installments on time, you should immediately contact the lender and have a frank discussion about the problems you are facing. Ask him for a modification on the loan terms. Ignoring the problem and avoiding the lender will only aggravate the situation. It would be better to communicate in person with the lender. However, there is always the option to hire a third party to act on your behalf. There are some reputable companies out there with experience in dealing with this situation. Either way, it is important that you respond to any notices or letters from the lender. Always keep the communication channels open whether it is mail, email, or telephonic contact. Your lender's interest lies in getting back the money you owe, and not taking possession of your home and getting involved in litigation. You can ask to have your loan repayment rescheduled to a later date by providing proof of the money that you expect to flow in from various sources to clear the debt. You might also request for an extension of the grace period. Asking for a lower interest rate is another option to stop foreclosure. The laws of foreclosure vary in each state and it would be better to contact the HUD for assistance. There are counselors in the HUD who will educate you about the local laws of foreclosure and the various options available to avoid it without filing for bankruptcy. You can negotiate a forbearance agreement and make efforts to prop up your finances in the meantime. You can consider liquidating other assets like cars, jewelry, bonds, fixed deposits, etc. to avoid foreclosure. Though these measures might not be of much help in the long run, they will convince the lender of your intentions. You can request for smaller installments, waiver of interest on the default amount, or postponing payment of the default amount to a later date while you pay the current dues. Do not pour out your cup of woes to the lender and expect him to show immediate sympathy. Brief him about the financial difficulties that you are currently facing, ways you are trying to deal with them, and the timeframe within which you are confident of overcoming the problem. Honest and frank communication backed with substantial proof will convince the lender about your sincerity. If you follow the advice in this article you can stop your foreclosure fast.

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