Foreclosure Articles
How to Stop a Foreclosure Sale Fast
Ezine Articles.com by Irene Parkdale
Foreclosure is a growing epidemic, with more families facing foreclosure each year. Statistics show that in the first quarter of 2008, a nationwide average of one out of 194 households was in foreclosure. Foreclosure is a difficult experience for all involved. All you want to do is stop the foreclosure sale and keep your home. Meanwhile, the phone calls and letters start pouring in leaving you to stress and worry about what you are going to do.
The good news is that there are some things you can do to remedy your situation and stop a foreclosure but only if you know your options and act quickly. The most important factor is time. If you can address the situation prior to the lender filing a "Notice of Default", you have a much greater chance of having a positive outcome.
If you have already received a notice of foreclosure sale, or "Sheriffs sale" depending on your jurisdiction, you are really felling the squeeze of time. Each day that the sale draws closer, you have less options short of bankruptcy (we'll come back to that in a minute).
Here's some common ways homeowners avoid foreclosure:
Foreclosure Arrangements with the Lender
There are a variety of arrangements that you can come to with your lender to stay legal action. Among the most common are loan modifications, short sales, repayment plans and more. All of these solutions require you to negotiate with your lender. In these cases, the services of a foreclosure specialist can come in handy as they will negotiate for you.
Bankruptcy
Bankruptcy is usually a last resort, not something you would choose on merit of the foreclosure alone. If you have other debt issues and little to no income, however a bankruptcy can be the right solution for you. There are two types of bankruptcy - a chapter 7 and a chapter 13. A chapter 7 is a temporary fix but will stop the foreclosure until the lender gets the permission of the bankruptcy court. A chapter 13 is designed to repay creditors by establishing a court structured repayment plan. Your mortgage can be one of the debts considered for a repayment, provided the parties agree or the court decides. Do know that choosing a bankruptcy filing can have serious consequences for you in the long term.
Refinance
If you have equity in your home, you may be able to find a lender or private investor to refinance your home in full. Keep in mind that you will need to be able to pay off the entire mortgage and any legal fees and penalties you may face. Refinance is a popular option for many facing foreclosure, but it all takes time and depends on your equity.
Deed in Lieu of Foreclosure
Sometimes it just doesn't make sense to try and keep a home that you won't be able to afford in the long run. A fresh start is sometimes the best solution. If you can negotiate with your bank for a deed in lieu of foreclosure, you can avoid the actual foreclosure process by essentially giving back the home to the bank. This may have advantages as far as your credit is concerned and when it comes to purchasing again in the future
TIME IS NOT YOUR FRIEND WHEN FACING FORECLOSURE
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