Business & Finance
Are You Trying To Fight Foreclosure? Try These 4 Things

Are You Trying To Fight Foreclosure? Try These 4 Things

Losing your home can be a frightening thought. It is the place you picked out, where you have made memories and a location of comfort. When times are tight, though, the money may not be there to make it happen. If you’re starting to miss mortgage payments, a bank may begin to consider a foreclosure notice, threatening to take away the property. If this is the case, you may have options. Consider trying the following four things to save your place.

1. Set Up a Meeting With the Lender

A proactive response is important at this time. The bank doesn’t know why you have defaulted on payment. When you hit trouble with paying, reach out to your lender as soon as possible, explaining what is causing the trouble. It is likely in the bank’s interest to work with you to find a solution. Be clear about any job changes, financial struggles or medical conditions. 

During these conversations, ask about mortgage forbearance, changing your mortgage plan or looking for additional assistance. It’s possible that during trying times, the bank may have a temporary solution.

2. Speak With the Department of Housing and Urban Development

If your financial situation has changed, discuss loan options with the HUD department. You may be able to seek government assistance to pay off some of your monthly payments, seek out a better, lower rate or find a forgiveness program.

3. File for Bankruptcy

Bankruptcy is a legal action and requires the assistance of a Rockville bankruptcy lawyer. While this may seem extreme, it could prevent you from losing your home. You may have to declare bankruptcy if you cannot pay off your debt. Yes, it is likely to affect your credit; however, it could save your house. The law allows you to keep personal property sometimes. 

Before taking this step, speak with legal aid about the effects of the choice and whether it is right for you and your family.

4. Consider a Short Sale

A short sale occurs when you need to clear your home off your debt and don’t have time to wait for the full amount. The bank accepts the lower payment and writes off the remainder as a loss. While in this case, you sacrifice your home, you may not incur credit trouble and may alleviate stress.

If a foreclosure seems possible, be upfront and honest about why you are struggling. Work with banking professionals to see if there are options to reduce your bills and keep you home,

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