3 Tips For Avoiding Foreclosure

Posted on: 17 October 2016

If you have found yourself in a situation where foreclosure on your home is possible because you are no longer able to afford your mortgage payments, you need to take action. Of course, if action isn't taken, then the bank will foreclose your home, which means you will need to move out within a certain period of time. However, if your current financial situation is only temporary because you have lost a job and are currently looking for another or you have been injured and are not currently able to work, then you want to consider these three tips to help you avoid foreclosure:

Fill Out the Proper Paperwork With Your Bank: 

When you know that you are no longer able to make the payments on your home, you need to fill out the proper paperwork with the bank. This gives you three months of not having to make payments while the paperwork is being processed. This paperwork usually just has you state what the situation is, when it will likely be resolved, and basic information about your loan terms. 

Arrange an Agreement With the Bank:

After the three months have passed and you still are facing the possibility of foreclosure, you need to talk to your bank to arrange an agreement about staying in your home without making payments. Some banks will allow you to go up to 6 months without making payments while others will require that you at least make partial payments while pushing the remaining balance to the end of the loan. 

File for Bankruptcy: 

Bankruptcy should be your last resort. However, if you don't wish to leave your home, it's your best option if you are still unable to make payments after the paperwork has been filed and an agreement has been made. When you file bankruptcy, it puts a pause on your debts, which includes your mortgage. Of course, you will need an attorney by your side to ensure that this is the arrangement made when you file. 

When you consider these three tips, you are going to be able to stay in your home without having to deal with foreclosure. Be sure to hire an attorney the instant you know that you are possibly facing foreclosure since they can ensure that you are taking these steps properly, filling out paperwork correctly, and making a strong case for yourself in order to stay in your home. Contact a firm like Alejandro Rivera PA - A Law Firm for more information.