There is no doubt that the stopping foreclosure key starts with the timing of the initial debtor action
. The most common cause of losing your home results from waiting too long to respond to a foreclosure notice or not reacting at all. Contrary to popular belief, there are dozens of ways to stop foreclosure.
You should call your lender before falling behind on your payments. If the lender will not work with you and you cannot make up the missed payments, here are a few other options to stop foreclosure:
Sell Your Home
Meet real estate agents to get an opinion of market value and average DOM to sell your home. Compare between discount broker and full-service broker to determine which best meets your needs and time frame
Consider a Short Sale
It affects credit but it's not as bad as a foreclosure. You will negotiate with your lender to find out if he will cooperate on a short sale. This is called a pre-foreclosure redeemed.
A short sale is when you decide to sell your house but you have no equity. So, you have to ask your mortgage company to release you from the mortgage debt as there will not be enough funds to pay them off. This allows the homeowner to avoid the damaging effects of foreclosure. Conversely, the lender wins by avoiding a lengthy legal foreclosure battle.
Sign a Deed-in-Lieu of Foreclosure
The homeowner provides the lender a properly prepared and notarized deed, and the lender forgives the mortgage, effectively canceling the foreclosure action. This is called deeding the home back to the lender.
Regardless of the actions chosen for the prevention or stop of the foreclosure everything is based on your ability to communicate successfully with your bank or request the help of a third party to represent you in the negotiations and come to the best solution for you.