When you’re already facing financial hardship, the last thing you want to receive is a foreclosure notice. A lender initiates the foreclosure process when a debtor consistently fails to make their mortgage payments. During the foreclosure process, the lender regains ownership of the property and sells it in order to settle the debt.
Depending on your circumstances, there may be ways to stop a home foreclosure sale. The first step is to contact your mortgage holder to discuss your debt and evaluate the status of your account. Your lender may be willing to renegotiate the terms of your loan.
Possible renegotiations include:
- Initiating a repayment plan
- Adjusting or reducing your interest rate
- Extending the repayment period
- Temporarily allowing you to skip payments
If your lender isn’t willing to renegotiate your loan, you may have to settle your debt through alternative means. Possible options include selling nonessential assets, being careful with your monthly spending habits, or taking out a loan.
Selling Your Property
If you’re running out of options, you can also consider selling your property. This option allows you to preserve your good credit, avoid bankruptcy, and circumvent the foreclosure process. You can also negotiate a short sale with your bank. This can settle your debt and let the lender recoup their investment.
If you have difficulty selling your property, you may be able to request a Deed in Lieu of foreclosure. This option is typically a win-win for both lenders and debtors. If your request is accepted, you can keep your credit record clean and the lender may forgive the entirety of your debt. A lender is likely to accept this option because it allows them to reclaim the property without dealing with any of the risks commonly associated with the foreclosure process.
Filing for Bankruptcy
Filing for bankruptcy is usually a last case scenario, but it does provide many financial benefits to debtors. Chapter 13 may be your best option if your overall goal is to pay off your debts and keep your property. Unlike Chapter 7, which is a liquidation option, Chapter 13 is a repayment plan supervised by a court-appointed trustee.
Schedule a Consultation
Before you make any serious decisions, it’s important to discuss your financial situation with a lawyer who is experienced in bankruptcy and foreclosure laws. At Bach Law Offices, our skilled Northbrook foreclosure defense lawyers have been helping clients protect their homes for over 35 years. When you schedule your free consultation, our legal team can examine your case and evaluate which options best benefit your situation.
Take legal action today. Call Bach Law Offices at (847) 448-0025 to fight against the foreclosure process.