©nirots - freedigitalphotos

©nirots – freedigitalphotos

Some people never know when to give up. There is a crucial point in foreclosure where you need to realize that it’s time to stop fighting. This may be hard to hear, but in many cases, if you “fight to the death”, it may cause irreversible problems with your credit and future financial state. Knowing when to stop fighting foreclosure can allow you to quickly recover and begin living a normal life again. Many people can even buy a new and better home almost immediately.

foreclosure knockoutKeep in mind, when we say give up trying to save your home, we don’t mean to stop fighting foreclosure, we just mean that you should stop wasting time and money trying to keep your home. Having a foreclosure on your record is never good, so when you are ready to accept the fact that keeping your home is no longer an option, you need to begin finding ways to make the impact of foreclosure as painless as possible.

In previous articles, we recommend never giving up; in retrospect, this is really bad advice. What we should have said is, don’t give up until you talk to us first. We have many options available that no other companies offer, so even if you had been turned down, there was still hope. But you need to know when to stop looking for help and when help just isn’t available. In general, if we don’t have an option to help someone, it’s time to start thinking of ways to make the foreclosure as painless as possible. Too many people waste all their time and money fighting an impossible battle.

If you don’t want someone elses help, or if you would rather figure it out on your own, here are a few ways to know it’s time to give up:

  1. If you don’t have a job or other source of income to make your payments, then fighting foreclosure will be very hard. You will need to establish a source of income as quickly as possible. Finding a new job may be the answer, but if your income doesn’t begin to improve, you may want to think about moving on.

  2. When you’re upside down in your home, there are only two real options for keeping your home. In some cases, you may be able to do a “short payoff” to lower the total amount owed, but this is a rare occurrence and must be negotiated by a professional. The only other (legitimate) option is to sell the home with a short sale. You may be able to purchase the home back at a later date, but you’ll be required to move out first. All other options are a losing battle, because you’ll be paying more than the home is worth. In this situation, it’s better to find a more affordable home.

  3. Some properties are located in an area where the values are dropping so fast, they’re in danger of being completely worthless. If your home is in an area where values are dropping, then you may want to consider getting out while you still can. Even when you have equity, if you are slowly seeing it disappear, then it’s probably time to find a new home.

If you find yourself any any of these situations, there are still options to save your credit and prepare for the best possible outcome. Two of the most popular options for homeowners in this situation are a short sale and a deed in lieu of foreclosure. For either of these options, you should seek the help and advice of a foreclosure and real estate professional. There are drastic consequences when these options are not performed correctly, but either can help you save your credit and get a fresh start.

For most situations, keeping your home and continuing with a lower monthly payment should be possible, but if you meet the criteria above, you’ll want to review your situation with a professional and make plans for the best possible outcome.

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