A foreclosure is a big thing and a big concern for everyone. If you’ve missed three or more mortgages payment, you might find yourself facing foreclosure. However, when you get a notice of foreclosure, it’s still not the end of the world. There are still ways to help you stop this seemingly inevitable event.
Here are two quick ways to stop or delay the foreclosure process and save your home:
- File for bankruptcy. If the foreclosure sale is about to happen in a few days, you can still stop it from happening by filing for bankruptcy. This stops it on its tracks. Once you’ve filed for bankruptcy, the federal law prevents any debt collector from continuing any debt collecting activity. The foreclosure sale is considered a form of collection activity. The lender becomes aware of your bankruptcy and the foreclosure will be frozen. However, be mindful that this doesn’t get you off the hook but just buys you enough time so you can find a job or recover financially.
- Foreclosure workout. You can always workout something around a foreclosure before it is finally scheduled for auction. Most lenders are open to work out a compromise that would help you in getting on track with your mortgage payments instead of taking your home in a foreclosure. So, make sure that you talk to your lender if you want to keep paying your mortgage.