Avoid The Foreclosure Process

Avoid the Foreclosure Process

To avoid the foreclosure process, financially distressed homeowners should consider educating themselves about the foreclosure process as much as possible. By taking an in-depth look at the foreclosure process, homeowners may explore foreclosure defense techniques they may have not originally considered. Additionally, homeowners may be able to determine which foreclosure defense techniques they may qualify for and which techniques may be unfeasible to pursue. Homeowners should also consider evaluating state laws when trying to avoid the foreclosure process since the foreclosure process can vary from state to state.

How to Avoid the Foreclosure Process

When learning how to avoid the foreclosure process a good place to start can be to review some of the most popular foreclosure defense options utilized by distressed homeowners and foreclosure defense attorneys. Some options to avoid the foreclosure process may allow homeowners to keep the home while other options may require homeowners to vacate. It often depends largely upon the homeowner’s current financial situation and how far along they are in the foreclosure process.

Avoid the Foreclosure Process and Keep the Home

Listed below are popular foreclosure defense techniques used to avoid the foreclosure process and keep the home:

  • Mortgage loan modification – Loan modifications commonly work by negotiating with mortgage lenders to modify the original terms of the mortgage agreement. This may help to reduce interest rates, principal and monthly payments.
  • Repayment plan – A repayment plan commonly works by negotiating with mortgage lenders to spread delinquent mortgage payments across the life of the loan. This may increase monthly mortgage payments, but can help to avoid the foreclosure process.
  • Mortgage forbearance – A mortgage forbearance commonly works by negotiating with mortgage lenders to temporarily suspend foreclosure proceedings while the homeowner tries to bring the loan current. This may only be a temporary way to avoid the foreclosure process.
  • Filing chapter 13 bankruptcy – Chapter 13 bankruptcy commonly works by creating a reorganization plan to help debtors may affordable monthly repayments to creditors. This may stop the foreclosure process.

Avoid the Foreclosure Process and Leave the Home

Listed below are popular foreclosure defense techniques used to avoid the foreclosure process and keep the home:

  • Filing chapter 7 bankruptcy – Chapter 7 bankruptcy commonly works by liquidating nonexempt assets in order to repay creditors. Depending upon the state the homeowner lives in when filing bankruptcy, they may or may not be able to keep the home after filing chapter 7 bankruptcy.
  • Deed in lieu of foreclosure – Deed in lieu of foreclosure commonly works by exchanging the title of the home for release from mortgage obligations. This can be an effective tool to avoid the foreclosure process.
  • Short Sale – A short sale commonly works by selling the home for less than the remaining balance on the mortgage. With the sale of the home, homeowners may avoid the foreclosure process.

Foreclosure Postponement

A foreclosure postponement may be able to temporarily delay foreclosure proceedings in order to provide distressed homeowners with some additional time before the foreclosure sale date. This extra time can be critical in helping homeowners bring their mortgage loans current or preparing them to leave the home.

Homeowners may benefit greatly by learning as much as possible about how to get a foreclosure postponement since it can be difficult to achieve. Additionally, foreclosure defense attorneys can be a tremendous resource in trying to postpone a foreclosure sale date.

Foreclosure Postponement Techniques

Foreclosure postponement techniques can vary greatly based upon a homeowner’s current economic situation, how they have responded to the foreclosure proceedings and how far along the homeowner is in the foreclosure process.

Three Foreclosure postponement techniques can include:

  1. Mortgage Redemption – A mortgage redemption can occur when a homeowner pays off the mortgage in full. Mortgage lenders may be able to deny a mortgage reinstatement, but typically they cannot deny a mortgage redemption.
  2. Loan Modification – A loan modification can occur when the original terms of the mortgage agreement are modified. This can help to reduce interest, monthly mortgage payments and principal. During loan modification negotiations, many mortgage lenders are willing to postpone a foreclosure sale date, but they may NOT required to do so. It can be important for homeowners to seek a written agreement from mortgage lenders promising not to move forward with a foreclosure sale during loan modification negotiations.
  3. Bankruptcy – Filing for bankruptcy can potentially postpone a foreclosure auction, typically once the automatic stay goes into effect. Homeowners who are considering this option may wish to an experienced bankruptcy attorney to determine when to file bankruptcy and what chapter of bankruptcy to file.

Foreclosure Postponement Help

If you need help with a foreclosure postponement it can be highly beneficial to enlist the help of an experienced foreclosure defense attorney. These attorneys are typically very experienced in dealing with mortgage lenders and the foreclosure process. Foreclosure defense attorneys can review a homeowner’s situation, negotiate with mortgage lenders for a postponement and review any other foreclosure defense options.