There's a foreclosure backlog and it is huge, so huge that in some states it would take as many as 62 years to process all of the foreclosures on books of banks. In states such as Texas, it is taking as much as 2 years to for a homeowner to go from default to foreclosure eviction and many banks are moving cautiously as the backlash from the robo-signing scandal continues to haunt them. But what should homeowners do to take advantage of the foreclosure backlog and delay?
Let's take a look at a few tips:
- Decide whether or not you want to keep your home out of foreclosure. A homeowner's options will be different depending on which route they want to take.
- If you want to keep you home out of foreclosure and you have other debts such as credit card and medical bills, you may want to consider looking into your bankruptcy options. Bankruptcy will allow you to discharge unsecured debt while giving you a chance to save your home from foreclosure.
- If you want to get a mortgage modification, begin immediately negotiating with your lender. If your lender is non-responsive or slow to respond, you may want to consider filing bankruptcy which could force them to the negotiating table.
- If you decide that you do not want to remain in your home, do not wait until you are facing a foreclosure eviction before finding an alternative place to live. Begin working on renting an apartment while your credit is still decent and move before eviction comes.