HOW TO STOP FORECLOSURE

By: The RedStone Law Group

- Learning about how to stop foreclosure may greatly benefit homeowners who are struggling to keep up with mortgage payments or who have already received a foreclosure notice.

- It can be beneficial to learn as much as possible about stopping foreclosure early on in order to have the best opportunity at saving the home.

- Waiting until the last minute to take action may greatly reduce a homeowner’s available options for stopping a foreclosure sale.

Why Learn to Stop Foreclosure?

Most homeowners hope to learn how to stop foreclosure while remaining in the home.

Several popular foreclosure defense options to remain in the home include:

1. Applying For a Mortgage Modification

2. Suspending Foreclosure With a Forbearance

3. Filing Bankruptcy

Stop Foreclosure & Keep the Home

Applying for a mortgage modification or loan modification is one of the highly sought after foreclosure defense techniques.

A loan modification may stop the foreclosure process while adjusting the original terms of the mortgage agreement.

This can include reducing monthly mortgage payments, lowering principal and even extending the life of the loan.

It is important to note, qualifying for a mortgage modification can be very difficult without the help of a foreclosure defense attorney.

Applying For a Mortgage Modification

A mortgage forbearance may temporarily suspend the foreclosure process while homeowners attempt to bring the mortgage loan current.

Delinquent mortgage payments may even be added onto the back of the loan.

This can be an effective way to stop foreclosure if homeowners are certain they experienced only a short-term financial hardship.

Suspending Foreclosure With a Forbearance

Depending upon which state the homeowner resides in, Chapter 7 and Chapter 13 bankruptcy may both be effective tools for stopping the foreclosure process while remaining in the home.

Chapter 7 bankruptcy may be able to eliminate debt, but a debtor’s nonexempt assets may be sold in order to repay creditors.

Chapter 13 bankruptcy may help debtors make repayments to creditors at a more affordable rate through the required reorganization plan.

Filing bankruptcy can be complex and difficult, so it is often smart to enlist the help of an experienced bankruptcy attorney.

Filing Bankruptcy

Some homeowners recognize they are truly unable to continue affording the home or may just be ready to leave.

For these individuals, it can be helpful to explore these popular techniques on how to stop foreclosure and leave the home:

1. Request a Deed in Lieu of Foreclosure

2. Sell the Home with a Short Sale

How to Stop Foreclosure & Leave the Home

A deed in lieu of foreclosure may help some homeowners avoid foreclosure by exchanging the title of the home for release of mortgage obligation.

This may help some homeowners walk away from the home without the negative effects of foreclosure.

Request a Deed in Lieu of Foreclosure

A short sale typically works by selling the home for less than the remaining balance on the mortgage.

Because the unpaid mortgage balance is not completely satisfied, it is necessary to obtain approval from mortgage lenders for a short sale.

This can be an effective tool for mortgage lenders to avoid the high costs associated with completing the foreclosure process.

Selling the Home with a Short Sale

To get a free consultation with a foreclosure defense attorney at the Redstone Law Group, fill out the form below or call 888-418-3616.

Professional Advice on How to Stop Foreclosure