8 Ways To Save Your Home from Foreclosure

There are some things to think about that can be the key to saving your credit, or your home, as we give you 8 ways to save your home from foreclosure. Although the number of those who own homes is increasing, the number of home foreclosures is also increasing. Once a couple of mortgage payments are missed, lenders can start foreclosure proceedings. Before you know it, your home can be taken away from you. If this happens to you, here are 8 ways to save your home from foreclosure.

Arrange your finances in a Structured Way

The best way to save your home from foreclosure, is to avoid it. You should organize your finances and make sure to prioritize your payments. For avoiding foreclosure-

• Mortgage payment should be given top priority over other debts.
• Standard of living should be adjusted and extra expenses should be controlled.
• Look for areas where you can cut back your cost or save/earn extra money.

Short Refinance

Ask your lender to consider forgiving some part of your debt, and refinance the remaining or existing debt as a new loan. This is called a short refinance. If the lender agrees, this will provide relief.

Reinstatement

Ask your lender to set a specific date to pay the missed mortgage payments. Your mortgage lender may want late fees, interest, or penalties but if you have time to re-pay then it would be very helpful.

Loan Modification

If you have short term monetary problem you can ask your lender for mortgage modification or extend the term of your loan.

Special Forbearance

Ask your lender for special forbearance and convince lender that you had a valid reason for your missed payments. If your lender is convinced by the reasons he/she may be agree to help you out with a special forbearance. However, in order to secure this agreement, you will have to assure your lender that you will absolutely abide by the new repayment plan.

Hard Money Loan

If you are unable to convince the lender with valid reasons you can borrow money from a private lender which will come with a higher interest rate.

UNAVOIDABLE FORECLOSURE SITUATION

If the foreclosure is inevitable and unavoidable you may consider taking the following steps.

File for Bankruptcy

Filling for bankruptcy is a step for delaying the foreclosure. If you file for bankruptcy your lender can’t foreclose while your bankruptcy is pending. But if you file for bankruptcy your credit score will be damaged.