Foreclosure Law Firms
When homeowners receive or expect to receive a foreclosure notice, they often feel like the situation is hopeless and just give up. Please, do not become one of them.
Whether you intend to save your home or simply minimize the damage to your credit and finances, there are many alternatives to foreclosure. Most lenders would prefer to negotiate a solution that is more profitable for them. A foreclosure attorney in your state can explain your options and their ramifications in detail. Many alternatives to foreclosure can save your home.
Keeping Your Home
There are several options that can save your home from foreclosure. The first three involve negotiating with the lender. Lenders are often open to negotiating, especially if you do it as early as possible.
Forbearance is something you ask for before you get behind on payments. A forbearance agreement allows you to miss payments or pay a reduced amount for a certain amount of time, typically three to six months. This is appropriate when you have a temporary situation and expect to get back on your feet soon. You will eventually make up for the missed payments either by paying off the amount as you go when you start making payments again or by tacking it onto the end of the loan.
A repayment plan is a way to pay off the amount you are behind over time. This works when you have had a rough patch, but are now able to make larger payments. You agree to make your normal payments plus a certain amount toward your arrears.
Mortgage modification can be an even better solution if your lender will agree to it. You may be able to negotiate lower monthly payments and sometimes even a lower principal. It depends on many factors, and is often appropriate in cases where you owe more than your home is actually worth.
Reinstatement of your loan cancels the foreclosure, but it will cost a large lump sum of money. You catch up on all of your missed payments, pay the late fees, and often pay other fees and expenses incurred by your lender. It is a costly option, but it will save your home and put you back on track.
Bankruptcy may allow you to keep your home, or it may just stall the foreclosure process. Sometimes, in bankruptcy you can reorganize your debts and keep your home as long as you continue to make payments.
If you are trying to save your home from foreclosure, please search this directory for an excellent foreclosure law firm in your area.