Mortgage delinquency is not happening only with you; there are hundreds of others who face the same trouble every month.
Mortgage delinquency is not happening only with you; there are hundreds of others who face the same trouble every month. The good news for those who are looking for the solution is that there are ways to stop foreclosure auction immediately. If you have been through this situation and want to know how to stop a foreclosure sale, this post is definitely for you. Read-on to know four of the most reliable methods to stop foreclosure sale date pertinent to the situation;
#1 LOAN MODIFICATION
Loan modification is an amendment within an existing loan terms and conditions, by a lender, as a result of non-payment. In order to apply for loan modification, you may be asked to submit a financial package for evaluation. Two prominent things happen right after evaluation process is completed;
- Lender decides whether to leverage you with modifications
- Once they agree upon modifications, they will provide you with new terms in black and white.
The most important point to note here is, that your lender reserves all the rights to reject your request for modifications after evaluation process is completed. So this option merely suits the homeowners who are adamant about keeping their home and are confident that they can make payments on modified terms even if the amount increases.
#2 FILING BANKRUPTCY
The bankruptcy is a term used for the situation where court offers you to begin it all over again by forgiving the previous unpaid debts. Meanwhile it gives lenders an opportunity to gain some amount as a repayment. You need a professional help to avail this option. Because filing bankruptcy is a complicated process where hiring a foreclosure attorney can work well for your needs. You need to discuss the case with a professional to know whether this option can find you a desirable solution.
#3 DEED IN LIEU
Deed in lieu means the lender asks you to voluntarily transfer the deed back to them. Because there are potential liability risks involved, a lender is usually hesitant while getting you with this option. One more reason behind lender being skeptical over this matter is having to satisfy the secondary mortgages or lines of credit against the property.
Here’s a point to note that deed in lieu, at times, has the equal impact on your credit as a foreclosure. You have to get in touch with a professional attorney in order to know whether this option is for you or not.
#4 SHORT SALE
In simplest of words, short sale means where a lender allows you to sell the property for lesser amount than what is due as a mortgage balance. Cash house buying companies or private real estate investors are the potential customers for short sale because normal buyers don’t get themselves into complicated foreclosure matters. Again, this option is not for every other person looking forward to stop a foreclosure sale. For example, short sale isn’t a wise move for you if you own a property and want to keep it with yourself.
