When mortgage payments begin to pile up, it won’t be long before your lender contacts you to find out what’s going on. If you miss multiple payments, you can expect to receive a foreclosure notice by mail.
Although this is scary, it doesn’t mean you’ve lost your home just yet. There are still steps you can take to stop the foreclosure process, such as:
- Foreclosure workout: Contact your lender to see if there is anything they can do to help you. For example, they may tack your missed payments onto the end of your loan if you can prove that you’re able to get back on track. Any offer made by your lender is one you should strongly consider.
- Short sale: If you’re interested in stopping foreclosure but not necessarily staying in your home, a short sale may be the answer. This allows you to sell your home for less than what you owe.
- File for bankruptcy: Once you file, the automatic stay helps stop the foreclosure process. This gives you time to assess your situation, consider your options and make decisions that keep you in your home.
With so many ways to stop the foreclosure process, you should never give up and assume there’s nothing else you can do. Instead, compare the pros and cons of each option to ensure that you are doing everything you can to save your home.
Once you understand the foreclosure process, it’s easier to feel confident in your ability to take the right steps. Even though you’ve slipped behind on your payments, you still have legal rights as a homeowner. It’s up to you to protect them.