Avoid Foreclosure

Avoid Foreclosure

To avoid foreclosure homeowners experiencing a difficult financial situation should learn as much as possible about foreclosure defense strategies and the foreclosure process. It can be wise to learn about these subjects as early as possible since waiting until the last minute can severely limit a homeowner’s available options. Additionally, foreclosure laws can vary from state to state so it is important to check with all local state foreclosure laws before pursuing a foreclosure defense strategy.

Avoid Foreclosure Options

Options to avoid foreclosure may or may not be available to some homeowners depending upon the stage of the foreclosure process they are in and their current economic situation. Some options may allow homeowners to stay in the home while other options may require homeowners to leave.

Five common options to avoid foreclosure can include:

  1. Filing bankruptcy – It can be possible to avoid foreclosure by filing for bankruptcy. Chapter 7 and chapter 13 bankruptcy are typically the most common chapters of bankruptcy filed when a homeowner is in foreclosure. The foreclosure process can be stopped once the automatic stay goes into effect. Homeowners may or may not be able to keep their homes depending upon which chapter of bankruptcy is filed and local state bankruptcy laws. It can be a good idea to speak with an experienced bankruptcy attorney prior to filing for bankruptcy.
  2. Mortgage Forbearance – A mortgage forbearance works by negotiating with a mortgage lender to temporarily halt the foreclosure process. Homeowners experiencing a short term financial hardship may choose this option in order to catch up on delinquent mortgage payments and bring the loan current. Some mortgage lenders may agree to a mortgage forbearance while others may not. A mortgage forbearance can often help homeowners remain in the home.
  3. Loan Modification – A loan modification can help to avoid foreclosure and works by adjusting the original terms of the mortgage agreement. This can help to reduce monthly mortgage payments, mortgage principal and even lower interest rates. Loan modifications can help homeowners to prevent foreclosure and stay in the home. It can be difficult to qualify for a loan modification and some mortgage lenders may be unwilling to offer this option. It may be beneficial to speak with an experienced foreclosure defense attorney for help with the loan modification process.
  4. Deed in Lieu of Foreclosure – Deed in lieu of foreclosure works by exchanging the title of the home for release from mortgage obligations. This can be a good option when a homeowner knows they are unable to afford the home and must leave.
  5. Short Sale – A short sale works by selling the home for less than the remaining balance on the mortgage. The proceeds from the sale are used to repay as much of the unpaid mortgage balance as possible. Short sales can be a good option when a homeowner knows he or she must leave the home, but requires an agreement with the mortgage lender.

What is Sale Date Postponement?

A sale date postponement in foreclosure may be able to help offer homeowners facing imminent foreclosure with some extra time before the final foreclosure auction. This can be an invaluable tool for trying to negotiate a last-minute resolution with a mortgage lender or preparing to vacate the home.

Knowing how to attain a foreclosure sale date postponement may benefit distressed homeowners significantly who are pursuing a foreclosure defense option near their foreclosure sale date. It can be very difficult to accomplish, so homeowners may wish to speak with a foreclosure defense attorney for advice on available options to postpone a foreclosure sale date.

Sale Date Postponement Strategies

Sale date postponement strategies can differ based upon how much time is left until the foreclosure auction and/or the homeowner’s current financial situation.

Three sale date postponement strategies may include:

  1. Filing for bankruptcy – By filing for chapter 7 or chapter 13 bankruptcy, homeowners may be able to achieve a sale date postponement once the automatic stay goes into effect. It can be difficult filling out the bankruptcy petition, so homeowners may wish to speak with an experienced bankruptcy attorney.
  2. Mortgage Modification – A mortgage modification can occur when a mortgage lender agrees to adjust the terms of a mortgage outside of the original mortgage agreement. During this time, mortgage lenders may choose to delay or suspend foreclosure proceedings, but they are not always required to do so. Homeowners should consider asking for a written promise from their mortgage lenders not to follow through with foreclosure during mortgage modification negotiations.
  3. Redemption – A mortgage redemption essentially means paying off the entire unpaid mortgage balance. While this is typically an unfeasible option for many homeowners facing foreclosure, it may stop foreclosure proceedings entirely.

Sale Date Postponement Help

Homeowners who are looking for help with a sale date postponement may wish to seek counsel from an experienced foreclosure defense lawyer. In addition to being very familiar with the foreclosure process, these lawyers are generally very experienced in negotiating with mortgage lenders. Foreclosure defense lawyers may review a homeowner’s situation, negotiate with mortgage lenders for a sale date postponement and/or explore other foreclosure defense options.