Foreclosure can be a confusing issue with intricate rules, laws, and methodologies, so it comes as no surprise that millions of American’s have questions concerning what to do with their homes when lenders come knocking. It is best to speak with a foreclosure attorney when it comes to your questions, but here are a few simple answers to some popular questions you may have:
Will the Bank Negotiate?
The short answer to this question is yes. But in reality, it depends on who you are dealing with and how far behind you are. A foreclosure attorney can help you with how to approach your lender, but the best practice is to be up front and honest. Call your lender and ask to speak to the loan modification department. Here you can negotiate around a foreclosure and attempt to setup a partial payment plan for the near future. If you are extremely behind on your mortgage payments, a foreclosure attorney may point you to a HUD counselor for help. These counselors are trained to negotiate with lenders and can help you immensely.
Will Bankruptcy Help?
Contrary to popular belief, bankruptcy cannot permanently stop a foreclosure. However, it can delay one. As a foreclosure attorney will explain to you, the court issues an automatic stay when you file for bankruptcy. This forces your creditors to stop collection attempts and allows you to postpone a foreclosure sale.
What Does a Short Sale Do?
If your lender allows it, you can sell your home under a short sale and satisfy the debt you owe. A short sale basically means the sales price of your home is less than the amount you owe the lender, yet the lender agrees to let it satisfy the debt. This will require some slick negotiation with your lender, but a foreclosure attorney can help you out.