Even when you're in good financial shape, you may have concerns about the future. Many people come to find that an emergency, such as a job loss or medical illness, would make it next to impossible to stay current with their bills.
If you find yourself facing foreclosure, you shouldn't hesitate to take action. It's better to stay in touch with your lender than to hide and hope that you can quickly work things out.
Here are three of the best ways to stop foreclosure:
- Foreclosure workout: Talk to your lender about any changes you can make to your loan to avoid foreclosure. For example, they may agree to add missed payments to the backside of your mortgage, which gives you a fresh start.
- Short sale: You don't get to stay in your home with a short sale, but you're able to avoid foreclosure and the financial damage associated with it.
- Bankruptcy: It's a big decision, as bankruptcy will impact your finances in many ways. However, if you're drowning in debt and unable to catch up, bankruptcy can help. Once you file, your mortgage lender is not permitted by law to continue with the foreclosure process.
You should never assume that there's nothing you can do to save your home from foreclosure. There are a variety of strategies to consider, all of which should be carefully considered.
Once you make a final decision, such as a Chapter 7 bankruptcy filing, learn more about the steps you can take to push forward in the near future. The sooner you take action, the sooner you'll find relief.