Four Ways to Stop Foreclosure

A foreclosure is the most stressful situation many homeowners face. Unlike other homeowners who sit and do nothing after failing to pay their mortgage, at least you have acknowledged your default and are trying to find possible ways to stop foreclosure. Let’s take a quick preview on four ways that will definitely help you stop foreclosure Houston.

house-with-empty-chairContact and Explain Your Situation to Your Lender

The moment you realize that you are at risk of foreclosure, your only way out could be to contact your lender. Often, most lenders don’t prefer the option of foreclosure as well because of all the time and money they’ll spend on the same. Therefore, be sure to contact them immediately and let them help you find a way out by laying down suggestions you could choose from.

Explain your current situation and seek to find advice from them on the way forward. Whichever agreement you both reach, ensure that all is put down in writing to ensure that both parties keep their end of the bargain.

Don’t Wait Till Its Too Late: Be Acquainted With Deadlines

You failed to make the payments on time and also failed to contact your lender to reach a mutual agreement; this means that your lender will put a public foreclosure sale to auction your property at a certain date. Ensure you have such information at the palm of your hands. At least, the further the auction, the more options you will have.

Before the final deadline, you may have enough time to work on possible ways that will avoid foreclosure Houston. Let your lender weigh out the options for you to choose from that may help you stop the sale.

Sell Property Prior To Foreclosure Sale

This will be your last option, but if you cant stop foreclosure through other means this may be an option to consider. As much as you will be losing your home, your credit history will be clear of foreclosure and thankfully you’ll have some cash in your pocket, though not as much as you’d expect.

Negotiate Deed In Lieu Of Foreclosure 

If selling your house doesn’t work out either, you can transfer the property back to the lender and avoid the foreclosure sale. You will walk away owing nothing to your lender. Let this be your very last option though. Home buyers would be a much better alternative that will resolve the foreclosure process quicker.

Final Thought

There are other alternatives you could consider, so before choosing any option to fend off foreclosure, weigh all your alternatives and pick on the one that will work best for you.