The feeling of owning your own home is one of the best feelings you will get in life. Unfortunately, the thought that you could lose the home because of financial problems is devastating. Everything goes through a point of financial constraint, and that does not mean it is the end. If you are afraid you are facing foreclosure, there are ways you could sell your home fast to pay the lender. However, you have to agree with them first. However, this may not be the best option, especially if you have nowhere else to live. If you think you are on the edge of foreclosure, here is what you need to do.
The first and most important thing you should do is educate yourself about foreclosure. Many people do not understand what is happening, and this hinders them from looking for solutions. Foreclosure is not prompt. It is a process where the lender will send you several notices. In these notices, you will find details on how you can prevent foreclosure. So, educate yourself and research how your state handles foreclosure. This will help you know the options you have and how much time you have left.
Talk with Your Lender
Many homeowners on the verge of foreclosure ignore the notices. You need to know that this is not always the best idea. It is advisable to be honest with the lender about your financial problems. The lender might be willing to come up with a solution for you. They might create a new payment plan for you, or you can request a forbearance. Forbearance will allow you to put your mortgage payments on hold for some time. The lender may also work on loan modification to make the repayments affordable based on the current financial situation.
Contact a Real Estate Attorney
Talking with the lender is the best idea. However, you can also speak with a real estate attorney for help and advice. The attorney will help you know how you will proceed with the process. They will also guide you on these steps to ensure you do everything correctly. So, consult a lawyer to help you in the current situation and what to do to secure your financial future.
Consider Filing Bankruptcy
Even though this is not the best option, it will suit you if the lender is reluctant to listen and work with you. You can file between Chapter 7 and Chapter 13 bankruptcy. This way, your assets will be kept on hold and the foreclosure process will be halted. Chapter 7 bankruptcy allows you to sell properties and repay the creditors while Chapter 13 allows the keeping of property and setting a repayment plan. Even though it does not seem like an ideal solution, filing bankruptcy allows you to settle your debt and ensure financial stability while avoiding foreclosure.
Preventing foreclosure is the best protection you have. However, when on the brink of foreclosure, these are the thing you do. Educate yourself, work with your lender and contact a real estate attorney. If the situation is too risky, consider filing bankruptcy.