The sad truth is that too many families have lost their homes to foreclosure in this tough economy. Between job market woes, personal debt burden highs and a troubling mortgage lending market, many people have been forced out of their homes. The good news is that if you are experiencing the threat of foreclosure you may still have time to take action.
Know Your State
There is one important difference in states when it comes to foreclosure. A judicial foreclosure state is one in which the foreclosure process must be managed by the court system. In these states, a lender cannot foreclose on a home without following strict guidelines under court supervision. Homeowners that live in judicial foreclosure states generally have more time to resolve their debts because of the time it takes for the court to intercede.
A non-judicial foreclosure state is one in which the foreclosure process can be initiated and managed outside of the court system. Here lenders can foreclose by following fewer guidelines, which leaves the homeowner with far less time to react and resolve debts.
Know Your Options
Depending on which type of foreclosure state you live in, your options may vary. If you live in a judicial foreclosure state, you may have enough time to negotiate a payment agreement or loan modification to resolve your mortgage debts and stop the foreclosure from happening. If you live in a non-judicial foreclosure state, you may have less than 30 days to resolve your debts. In this case, filing for bankruptcy can immediately halt foreclosure proceedings and begin the negotiation process to help resolve your debts.