If you are one of 9 million homeowners underwater or behind on mortgage payments you are likely grappling with the decision of how to resolve financial hardship and keep your home. Luckily, there are options to help. Here are a few ways to avoid losing your home to foreclosure:
Short sale — one solution for avoiding the mark of a foreclosure is through a short sale, whereby you essentially give the profits for the sale of a home to the lender in exchange for being released from the loan. While a short sale can avoid a credit consequence, it still leaves you without your home.
Mortgage loan modification — negotiating a loan modification with your lender is another option for avoiding a foreclosure. Some lenders may be willing to lower or suspend your payments, modify interest rates or loan terms, or even reduce the principal owed. However, lenders are tough negotiators and most people find they won’t qualify for a modification from a lender.
Bankruptcy — filing for bankruptcy can put an immediate halt to an active or even impending foreclosure. When you file for bankruptcy your lender will be required to halt any foreclosure proceedings while you work out a plan for resuming payments. You may eliminate unsecured debt to free up money for keeping up with mortgage payments in Chapter 7 or freeze penalties and interest while making monthly payments outlined in a Chapter 13 plan.
You don’t have to worry another day about your missed mortgage payments. A Fort Worth bankruptcy lawyer can help you defend against foreclosure.