A Guide to Stopping a Foreclosure Notice
Foreclosure is a legal action that is taken by a lender when you have failed to repay your mortgage loan as per the agreement, and the lender initiates the process to recover the property. The foreclosure comes when you have successively failed to repay your mortgage loan because of some financial challenges. Any foreclosure notice must go through the court via the financier’s attorney who will get the notice and have it sent to your address. Once you are served with a foreclosure notice, you can still proceed to own the property if you proceed to file for bankruptcy or plan on negotiating the mortgage terms with your lender. In this article, you will learn what you need to know about stopping a foreclosure notice.
Contact the lender for a discussion on the reasons why you have defaulted to repay the loan. This method will not stop the foreclosure notice but only delay it to a future date; you can take advantage of this approach. You can discuss with your lender on the reasons for the default and also bargain for an extension on the repayment plan, this will postpone the repayment period. You can also request to have the amount that you repay as loan monthly be lowered.
You can sell your house to those investors in real estate who will buy it in cash. There are many companies in real estate industry that are buying a house for cash, this is a quick process unlike listing your property with the realtors and with the real estate companies you guaranteed of cash. You can use the sales proceeds from the property and plan on how to continue repaying the mortgage loan, this will save your credit score from lowering.
You can proceed to court and file for a bankruptcy proceeding to delay the foreclosure. Many people who have been unable to settle their liabilities because of different financial challenges may opt to go file bankruptcy. Filing Chapter 7 Bankruptcy will cushion you from the foreclosure for the entire period the matter will. Be in court; this is a step taken to postpone the foreclosure.
Sale your property as a short sale via an agent in real estate to avoid the foreclosure. Short sales are made at a value which is way lower than the price you bought the home at and even below the market value of the said property. Unlike selling the property to a real estate investor where you receive the sales value, selling your home as a short sale will not earn you any money, and yet you lose ownership of the property.