You haven’t lost everything if you received a default notice. There are ways of stopping foreclosure from completing or preventing it from starting.
For those who have missed over three payments on their mortgage, or for those whose lender sent them a Default Notice, you might worry that your home is doomed; however, as long as your home is not sold, you can still save it if certain things are done and certain abilities exist. Here are 3 ways to stop foreclosure.
- Using a Foreclosure Workout. The earlier the better in the process, most mortgage lenders rather compromise to keep you in the home than foreclosing. This scenario would let you get current on the mortgage and not force them to get into the business of owning, maintaining and then selling your home. Even the greedy bankruptcy attorneys would not want you to miss out on an opportunity to obtain a true mortgage modification through a workout option. But a seasoned foreclosure lawyer dallas might suggest you look closely at the following 2 options. Most will recommend you go with the bankruptcy route before a short sale.
- Using a Short Sale. Once your mortgage lender has sent you a default notice, but prior to actually scheduling a foreclosure sale at auction, an offer received from a buyer must be considered by the bank. This doesn’t mean they have to accept it. If the bank forecloses on the home, they will simply move to subsequently re-sell your home. If you can bring a reasonable offer of a short, the lender could see this as an overall savings in the part of money, maintenance, time, effort as well as huge troubles to get a qualified buyer for the home. This particular option is often viewed as being more favorable for the bank than for you as the actual home buyer. It benefits the Realtor, the buyer, and possibly you, but in most cases, you won’t really gain much in a short sale.
- Filing For Bankruptcy to Keep The Home. Bankruptcy (typically through chapter 13 bankruptcy,) prevents foreclosure and halts it immediately. Following a bankruptcy filing, the law prohibits your lender from any type of legal foreclosure or collection activities. Foreclosure falls into the category of being deemed a method of collection activity. The moment your mortgage lender is made aware of bankruptcy, foreclosure is immediately frozen. However, there are consequences; if you file a chapter 7 bankruptcy, you will not be provided time to catch up your mortgage other than a few months. Chapter 13 bankruptcy will generally be the more ideal situation to keep the home out of foreclosure. It is most common and often the most beneficial if the home owner has experienced a temporary drop in income.