How to Stop Foreclosure

However, is that a good idea? Are there any good reasons why you should abandon your house?

Behind Mortgage Payments

If you are behind on your mortgage payments and have attempted but failed to work out a solution with your bank, this may be a situation in which your only option is to walk away. You may choose to explore some last ditch efforts with your bank like deed instead of foreclosure. In this case, the bank takes your property in exchange for not submitting foreclosure so you will not subsequently have a foreclosure on your record. You can also explore a brief sale option where the lender agrees to let you sell the tu casa express and pay them less than what they are rejected.

Significantly Underwater

Some areas of the US have been hit the hardest by foreclosures and falling home prices. If you reside in one of these areas and your home is significantly underwater, walking from the house may be a fantastic alternative. In some areas it’s likely to take several years for the housing market to recover. Look over your situation and think about whether or not you expect to be in your home long enough for that recovery to take place. Again, you might choose to explore deed instead of foreclosure and brief sale options with your lender prior to making a decision. There is also a government program called the Principal Reduction Alternative (PRA) in which you may have the ability to work with your lender to reduce the amount that you owe on your loan. There are monetary hardship conditions for this app so check with your lender to see if this is an option for you.

Major Financial Change

Sometimes unexpected things occur in life like major disorders, divorce, or major employment changes. While lenders will sometimes work together with you when these changes occur, you have to consider your entire financial picture. If your spouse or partner has a terminal illness, then you have to consider whether you would be able to afford the home if they pass away. And not only the mortgage payment but the upkeep of the home. Would you even want the home anymore? In case you’ve gotten divorced, this is also a matter that you need to consider. In these scenarios, walking from your home might be the best financial decision for your family. But check with your lender to find out if there are options available to you.

Disclaimer: The author is not a financial professional. She does not guarantee the accuracy of the information supplied in this article and is not responsible for reliance on this information. In using this guide, you agree that its information and services are provided “as is, as available” without warranty, express or implied, which you use this guide along with the information contained in it at your own risk. You agree that the writer doesn’t have any liability for direct, indirect, incidental, punitive, or consequential damages with regard to the information, services, or articles contained in this report.