National foreclosure rates have dipped quite a bit over the last few years. That doesn't mean that people aren't still facing foreclosure, though.
Have you recently learned that the bank is planning to foreclose on your house? If so, you're probably desperate to do anything you can to keep it.
If your home is at risk of going into foreclosure, this article is for you. Read on to learn how to stop foreclosure and protect your home.
Contact Your Lender Right Away
Often, when people find out that they may be facing foreclosure, they have a tendency to bury their head in the sand and pretend the problem isn't there.
It's understandable that you want to do this, but you can't wish this issue away.
The sooner you reach out to your lender and talk to them about the problem, the better off you'll be. Respond to all communications from your lender and try to sit down with them to discuss your options right away.
Know Your Mortgage Rights
Dig up your mortgage agreement as soon as you can, too.
Go over it and figure out what your lender is legally allowed to do if you don't make your payments on your house. This will help you ensure you're receiving fair treatment from your lender.
Sell Your Assets
Before you decide that you can't keep up with the payments on your house, take a look at your finances and consider whether you have any assets you can sell. Do you have a second car or valuable jewelry?
Selling these assets might be difficult for you to do, especially if they have sentimental value. If selling them can help you to avoid foreclosure, though, it'll be worth it in the end.
Consider a Short Sale
A short sale is another option that can save you from foreclosure.
If you get an offer on your home and can present it to your lender after they've filed a Notice of Default (also known as a NOD) on your loan, they have to consider it.
In most cases, they will consider it, too, as it saves them from having to try and sell the house themselves.
Sell to a Real Estate Investor
You can also sell your home to a real estate investor. According to info from BiggerEquity, real estate investors pay cash for houses and buy them as-is. You can use the money from this sale to get caught up and start over fresh.
You Know How to Stop Foreclosure: Now What?
Now that you know how to stop foreclosure, it's time to take action. Implement these strategies today to prevent the bank from taking your home.
Even if you're not able to stay in it yourself, you can at least take these steps to save it from foreclosure and avoid having that negative mark on your record.
Do you want to learn more about managing your money so you can avoid being in this situation in the future? If so, check out the Finance section of our site today.
