12 Ways to Stop Foreclosure on Your Home

What is Foreclosure?

Foreclosure is a legal procedure that comes into play when a homeowner fails to pay their mortgage, leaving the lender at liberty to dispossess the homeowner and sell the property as per the contract.

Many might think we have come a long way from The Great Recession of 2008 Housing Crash but things aren’t as rosy as they may seem.

Approximately 47,000 U.S. properties had foreclosure filings in March 2020 as pointed out by ATTOM Data Solutions. Yes, that’s right! 47,000 foreclosures. 

Imagine being unable to pay your mortgage payment on your home and the lender taking your beloved house back from you. The stress and pain that follows are unbearable. The uncertainty of where you and your family where live and what comes next, not to mention the toll it will take on your credit score. Lower credit scores will  make it more difficult to rent a new home or apartment when searching for a new place to live.  You sure don’t want to be in such a position do you? Then, it’s imperative you learn about the effective ways to stop foreclosure.

The following are 12 ways to avoid foreclosure on your Home

1. Forbearance

Forbearance eases off the mortgage liability on you for a short period of time with the authorization of the lender.

2. Repayment Plan

A repayment plan splits your due payments into monthly installments in addition to your actual mortgage payment. The two payments combined equal your new monthly payment until the past due amount is paid in full. This technique helps you get back on track and avoid foreclosure. 

3. Loan Modification

Loan modification entirely restructures your mortgage. It provides you with a more feasible and affordable payment plan by modifying the terms of loan permanently.

4. FHA Loan

FHA loan helps you refinance your payments. It is an interest-free loan that you can acquire from HUD and only is to be paid after your first mortgage is paid off.

5. Refinancing

In case of being behind in monthly payments, refinancing can help you bring monthly payments down to an affordable level and avoid foreclosure.

6. Short Refinance

In short refinance, the bank agrees on a short pay off of your existing mortgage and lends you a new loan with an abridged balance, assisting you to avoid foreclosure.

7. Temporary Restraining Order (TRO)

You can get a temporary restraining order from the court to stop foreclosure. This order can buy you a few weeks to pay your dues off.

8. Bankruptcy

Taking the plea of bankruptcy can stop foreclosure for an indefinite period. It is the easiest way to delay foreclosure and own the property for further time.

9. Sell off Assets

If you own an asset that can pay off your due payments, sell that asset right away. This would let you avoid foreclosure and to keep hold of the house.

10. Deed-in-Lieu

If everything else fails, you can hand the property deed back to the lender and be free of the liability. You can utilize this option to prevent foreclosure.

11. Short Sale

A short sale means selling the property less than it is worth. The lender can get back its money, however, a bit less, without having to go through a foreclosure.

12. Pay off the Balance

This technique is the simplest, i.e., just pay off your remaining loan due.

Conclusion

Avoiding foreclosure is not as challenging as it may seem. While anyone can land in the troublesome situation of foreclosing, one can prevent it with the right guidance and prompt action. Here at RESCO we help Homeowners get out of bad situations all the time. After all we don’t call ourselves Real Estate Solutions Company for nothing. RESCO is here to help you get out of any situation and on with your life by taking these stresses of your shoulders.