How to Stop Foreclosure Fast & Save Your Credit Score
The Notice Of Default And How To Avoid Foreclosure
If you haven’t honored your last few consecutive mortgage payments, your mortgage lender or perhaps the bank may take actions to repossess your home or investment property. Sure, it isn’t “fully” your home yet, and until the last mortgage pay is met, the bank has every right to take it back. And, that’s why you have to hold on to your end of the bargain if you are to stop the dreadful experience leading to foreclosure. Read on how to stop foreclosure.
The Notice Of Default
Upon defaulting on your payments and with no convincing reason to be granted more time, the lender will have no otherwise, but to seek a notice of default. It is perhaps the single greatest step towards foreclosure as it grants the defaulter a final chance to pay up. If the payments are made, the entire process leading to foreclosure can be halted.
Lenders have unique rules and timeframes regarding how and when to file for the foreclosure. Some prefer to forgive the borrower and work with them more closely, while others love recording for it as soon as the last warning isn’t honored. Despite all these, however, a person facing a foreclosure might not delight even when everything has been halted, particularly because of how the whole document impact credit history.
Would you like to know how to stop foreclosure and keep your credit history intact?
First and foremost, it’s imperative to agree that a default doesn’t directly put your house in contention for foreclosure. A late payment does not equate to default too. But when it becomes a habit, and the borrower goes beyond two or three payment periods without a concrete reason, the lender might be prompted to take the next step.
Need to stop foreclosure now?
It’s critical that you first work towards preventing the filing of the Notice of Default. Lenders never prefer the lengthy process of filing the key document, although they might do it to protect their interests. So, you must ensure that the bank delays making the first move.
- Don’t ignore the lender’s calls, letters, and emails. Respond to them and ask for some empathy as you work towards honoring the missed payments.
- Make your mortgage payments automatic so that the payments are made in time. If you have been paying without problems, the lender will be willing to grant you some time to get back when your source of income lets you down.
- Change the terms of your loan if you think the current one is unfavorable.
- Spread the missed payments over a much longer repayment period. It is a form of repayment plan that will favor both you and the lender.
- Partial claim – hunt for a separate loan that will cover the missed payments.
More ways of stopping Foreclosure
When the lender proceeds to file for foreclosure, your options invariably reduce. You will be needed to pay up the missed payments, pay the expenses incurred during the foreclosure and work towards stopping the repossessing of your home from happening. The reinstatement process is hectic and if the lender doesn’t cooperate with you, just consider the following routes.
- Sell your home
- Consider a short sale if your house is worth less than what you owe the lender.
- Sign a deeds-in-lieu of foreclosure.
- Take the Bankruptcy pill.
- Contact Us Today to discuss your situation, we know the process and have the right professionals on board.