Trying to Stop Foreclosure?
If you’re facing a foreclosure you have to really look at your situation and decide whether you are okay with the foreclosure going through or if you want to avoid it. Then if you decide you don’t want to face a foreclosure you need to determine if you want to keep the house or not.
If you want to keep your home and avoid foreclosure there aren’t many options available but a loan modification may enable you to do both of those things. There are loan modifications you can get with your mortgage servicer or you can get them through the government. The loan modifications offered through the federal government tend to be very good and can make your home much more affordable, even knocking off a large chunk of the principle. But federal loan modifications are notoriously slow and filled with paperwork and deadlines.
For people who decide they don’t want a foreclosure on their credit history but really don’t care if they want to keep the home or not a short sale or a deed in lieu of foreclosure may be a way out. A short sale is an agreement between you and your mortgage lender that says they agree to accept the home, for whatever it sells for, to cover the balance you owe on the mortgage. This can be a great deal, but your lender may not agree to write off any remaining balance.
A deed in lieu of foreclosure means that instead of continuing with a foreclosure your lender agrees to take the deed to your home.
If you are not sure what option is best for you it is advised that you contact a loan modification lawyer or bankruptcy attorney to review your financial situation.