How to Prevent Foreclosure Through Forbearance, Loan Modification or Bankruptcy

How to Prevent Foreclosure Through Forbearance, Loan Modification or Bankruptcy

Preventing Foreclosure Through Forbearance, Loan Modification or Bankruptcy

It’s a story that’s all too familiar in today’s economic climate: you, or someone you know, have fallen behind on your mortgage payments. Whether you missed your mortgage payments due to a job loss or a skyrocketing adjustable mortgage rate, there’s no denying that missing out on these payments has put you on the fast-track to foreclosure. And you’re desperate to prevent foreclosure at all costs.

Ways You Can Prevent Foreclosure

There are ways you can prevent foreclosure right at this very second.

Don’t let another moment go by – use these tips to prevent foreclosure and protect your home from the auction block:

  1. As soon as you’ve missed a mortgage payment, be sure to get in touch with your lender immediately. Many individuals resist contacting their lenders, as they’re afraid that they’ll get in trouble for missing their payments.  However, your lenders are human too (despite any evidence to the contrary), and they’ll be likely to work out a new repayment plan with you if you request help. Be sure to let them know your current financial situation: there are options available such as forbearance; if your financial situation calls for it mortgage payments can be temporarily deferred for up to twelve months.
  2. If you’ve already missed a few payments, it’s likely that you’re already in the midst of foreclosure proceedings. Another option to prevent losing your home is to seek a loan modification, which is a reworking of the loan to get mortgage payments lowered. Loan modifications can be obtained through private lenders or the federal government.
  3. If you do not qualify for the above solutions or your lenders won’t work with you, then it’s time to take drastic measures against foreclosure proceedings: declare bankruptcy. Under bankruptcy laws your lender is sent an automatic stay, which means that all foreclosure proceedings must immediately stop as soon as you file for bankruptcy – and if your lender still tries to collect on your debt, you can take legal action against them. Better still, your home will be federally exempt from any debt restructuring, so lenders can’t force you to sell it in an effort to collect on their debts. In other words, declaring bankruptcy can give you the last-minute save you need to prevent foreclosure proceedings on your home.

Stop Foreclosure Today!

Don’t let foreclosure proceedings take away your home – contact your lender, a loan modification lawyer or a Dallas bankruptcy attorney to see what your options are.

By | 2017-12-13T00:54:21+00:00 January 3rd, 2012|Foreclosures|Comments Off on How to Prevent Foreclosure Through Forbearance, Loan Modification or Bankruptcy