How Do You Stop a Foreclosure?

How Do You Stop a Foreclosure?

Are you facing an imminent home foreclosure? Is it stressing you out so much that you can’t even think straight? Are you ripping your hair out, asking yourself, “How do I stop foreclosure?” Well, despite what some may say, there are always options available to stop a foreclosure. Below are five of the most common strategies on how to stop a foreclosure of a home.

Catch Up Your Loan

The first option for stopping foreclosure involves bringing your loan up to date. This means paying off all late fees and balance charges until your current monthly charges are back to $0. The difficulty with this method to stop home foreclosure is that you typically need a large sum of cash upfront. However, this is by far the simplest method available to stop foreclosure now. It is like owning a credit card. If you want to stop the creditors from harassing you, just catch up your balance and they will leave you alone.

Payoff Your Loan

This is by far the most unrealistic option on how to stop foreclosure. Most of us cannot afford to magically pay off a huge loan in just one clean sweep. Nonetheless, it is an option. If you can find a friend or relative to give you financial help to stop foreclosure, this will immediately stop foreclosure of your home and rid you of that nagging debt. Of course, you will now owe you friend or relative all that money.

Sell Your Home

This option for stopping foreclosure on your home entails paying off your debt by selling your home. This is especially useful if your home has a greater value than your bank loan. If however, is valued less than your loan, you may be able to convince your bank to settle on what is known as a short sale. With a short sale, your bank basically consents to settle with less money than they are actually owed. This is similar to a credit card company offering a reduced settlement for an outrageous balance. Although it is less money than they are owed, it is better than nothing. If you choose to stop foreclosure now with this method, you will unfortunately lose your home. But at least you won’t owe a heap of money anymore.

File For Bankruptcy

Filing for bankruptcy will not stop home foreclosure, but it will at least forestall it. It reorganizes your debt and allows you anywhere from 2 to 6 years to repay your debt. Be aware that you will require the assistance of a well-trained bankruptcy attorney to file for bankruptcy. Your lenders will try to block your bankruptcy because they would rather just take your home, sell it, and get their money right away.

Renegotiate Your Loan

Not only will renegotiating your loan stop a foreclosure, but it will actually prevent the foreclosure from even occurring. This is similar to utilizing a debt consolidation agency to handle credit card balances. This involves negotiating with your bank for reduced payments, reduced interest, and a possible forbearance. Instead of wondering how to stop foreclosure, go directly to your lender and just discuss it with them. More often than not, they will be glad to work with you.

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