Avoiding
Foreclosure
Foreclosure is a
judicial process used by banks or lenders to obtain title to real property that
is pledged as security for a debt when the owner of the property defaults on the
mortgage, usually by not making his or her mortgage payments. Many
borrowers that have missed their mortgage payments are facing the possibility of
foreclosure.
There are several ways to stop a lender from foreclosing on a
property:
You may NEGOTIATE with the lender to restructure your loan
Several lenders are currently trying
to renegotiate the terms of loans to help borrowers currently in
distress. If you are in default and facing the possibility of foreclosure,
you may try to negotiate with the lender directly or hire an attorney to help
you with this process.
You may REFINANCE to prevent foreclosure
You may also attempt a refinance. You may have to do this as
soon as possible to prevent further credit damage that will make it more
difficult to obtain a new loan. You should contact a mortgage broker or
lender as soon as possible to determine whether you qualify for a
loan.
You may SELL YOUR HOUSE before the foreclosure
Finally, you may
attempt to sell your property before the
foreclosure. Since we are in a
declining market, selling your property may not be an easy task.
However, you may be able to do so by either selling your property to a real
estate investor if you have equity of about 35% in your property.
Also, a realtor may be able to help a borrower in distress by submitting a
short sale package to the lender to negotiate a short sale. A short sale is
where a lender will allow the sale of the property for an amount which is less
than the amount owed to the lender.
