It seems today, everyone needs to worry about their bank filing foreclosure. A bank foreclosure is when your mortgage company or bank is trying to take your home back. In most cases, this is done because of missed payments, or taxes that they have paid on your behalf. There are other types of foreclosures, such as a tax foreclosure, land foreclosure, or if you have a mobile home, it may simply be a repossession.
If a bank has already foreclosed on your home, you may still have options. Many people are able to reverse the sheriff’s sale and refinance, or find a way to pay off the mortgage. A bank foreclosure on your credit record will make it hard to get a new loan, so it’s important for you to do everything possible to keep it from your credit record.
In many cases, you can stop the bank foreclosure by paying off the total amount owed, along with any additional fees. This can be done all at once, or through a repayment plan, assuming you are able to make your normal monthly payments as well. This is called a “workout plan” or forbearance agreement. You may also qualify for a mortgage modification, if you can show that it would be impossible for you to make your existing payments, but you could make a payment at a lower interest rate. Banks and mortgage companies don’t always tell you about these options, so you’ll have to ask about them, and if they initially turn you down, you’ll probably want to seek the help of a professional to help negotiate on your behalf.
Every situation different, so use the form on the left to find out which options would be best for you. We’ll help by providing a free evaluation and for a limited time, you’ll get access to our members only section, which includes 12 free ebooks!
Stopping foreclosure can happen quickly, or it can take many days or even months. Act quickly to allow enough time to complete all options.
Even a few extra hours can make the difference between keeping or losing your home!If you can afford to make your normal monthly payment, or if a lower interest rate would make your home more affordable, then you can probably stop your bank foreclosure immediately.
If your home is no longer affordable, even at a lower interest rate, then you may need to take action to get rid of the home as soon as possible. The quicker you act, the better your chances of selling the home, or setting up a deed in lieu of foreclosure. A deed in lieu of foreclosure is when you give the deed back to the bank, and they agree to cancel any debt you owe. This is not as simple as it seems, and there are many dangers you need to worry about, so this should really be considered as your last option. If you can sell your home first, it will leave you in a much better financial state.
Stopping a bank foreclosure and keeping your home is different than stopping the foreclosure and giving up your home. You just need to decide if you want to keep your home, or try to find a more affordable one.