Losing your home in a foreclosure is just about one of the hardest things that can hit you. In some cases where the value of your home is even less than what you owe your lender, you may not only end up homeless, but you would also be burdened with even more loan repayments of the balance of the original loan less the value of your home. You can stop foreclosure in one of several ways.
Foreclosure is a legal proceeding that necessitates professional intervention when a mortgagee secures a court order to cancel a homeowner’s legal right to keep his home in the event of mortgage payment default. In a mortgage, the mortgaged property is often held as collateral by the lender. The mortgagee, or the borrower, undertakes to surrender the asset in consideration to the lender in case of non-payment of the loan. In case payment of the loan on a property ceases for one reason or another, the lender can repossess the property with the necessary legal documentation. There are options for the homeowner to take when faced with a dilemma like this. If the payment defaults have resulted in legal action, a borrower can file for a temporary restraining order and post a bond of an amount that is equal to his missed payments to prevent foreclosure.
When faced with foreclosure, it is a wise idea not to avoid contact with your lender which in most cases would be a bank or another financial institution. Your lender would want to be assured that you are not going to renege on your obligation. Foreclosures do not happen overnight. You will most likely receive letters and telephone calls to let you know that the lender is already demanding payment and that they are going to take legal action on your account. Measures to stop foreclosure should be made as early as this point. You need to make your lender believe that the defaults are temporary and that you are making an effort to resume payments on your mortgage. Most banks would have what is called as a loss mitigation department that you can get in touch with to find out what the repercussions of your payment default are. They will also want to give you options for a workable solution to stop foreclosure.
Your bank will be the best place to start looking for solutions when you want to keep your home. Some degree of persistence and determination on your part will have to be demonstrated to convince the financial institution of your best intentions of keeping your end of the bargain. Some documentation as well as updated financial documents will most probably be required by the financial institution to devise a solution that is viable for both the borrower and the lender. If you have all of the documents necessary for the financial institution to review your case, you will most likely see a resolution to your case very soon. When they do present you with a solution to your case, you will have to review the provisions of the new deal carefully to make sure that you are not being reeling in for an unfair deal.
Look at your options to stop foreclosure carefully. If you do need to get professional assistance, it would be wise to do so to eliminate the time and effort wasted in you ambling about on your own. Foreclosure remedies such as loan refinancing and forbearance can help you keep your home and maintain your credit standing.