When you miss your mortgage payments for several months in a row, your lender will begin the foreclosure process. While you may feel ready to give up at that point, there’s plenty you can do to emerge from foreclosure in good standing, provided that you begin early enough. Here’s what you need to know about home foreclosure:
- Lenders Are Willing to Negotiate
Immediately after you miss your first mortgage payment, you should contact your lender and see whether they are open to compromise. Contrary to popular belief, lenders hate to see borrowers forced into foreclosure. If you and your lawyer approach your lender with a legitimate excuse, such as getting laid off or exorbitant medical bills, you may be able to come up with a workable solution.
- There Are Many Alternatives to Foreclosure
A foreclosure can wreak havoc on your credit score, making it extremely difficult to convince future mortgage lenders to do business with you. In order to avoid foreclosure, take a close look at the alternatives, which include getting help from the government, selling your home to an investor, or giving your lender the deed to your house.
- Bankruptcy Can Help
Though you may not guess it, bankruptcy can actually be a great help when facing foreclosure. When you file for Chapter 7 bankruptcy, the court issues an automatic stay, which can delay the foreclosure process by several months and give you time to find a new place to live. Filing for Chapter 13 bankruptcy means that you can factor your missed mortgage payments into your repayment plan and keep your home.
If you’re facing foreclosure, it’s important to know that help is available.
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