Can you stop a foreclosure?
Can you stop a foreclosure? The term Foreclosure itself is small one, but the terror it brings about is no small thing. You know what a foreclosure is, but you do you know how to stop it? Or how effective your strategies are in stopping them? Read more on how you can stop a Houston home foreclosure.
Supposed you’ve missed a few payments
The lender would most probably forgive you if you have missed only a payment or a couple of them. If your lender is the generous kind, he will allow for debt forgiveness, with the assurance that you will be prompt in future payments.
You can spread out the payment
If you cannot make the payment in a single month, then you can probably make it over the next few months. Here, you are not missing a payment, but just making it in installments. Most lenders agree to this.
An automatic stay will work
If you file for bankruptcy, then automatically, your foreclosure process will be halted. This leads to an automatic stay. It also acts as an injunction, preventing the lender from foreclosing your home. And, by lifting the stay legally, you fall back into the clutches of foreclosure, but it will still take a month or two.
Find out if you are liable for VA Refunding
If your loan is backed by the Department of Veterans and you are not able to make payments now, then the VA can take over the servicing. You may even qualify for refunding if the lender is not ready for a repayment plan or forbearance.
Change the terms of the loan
Can you stop a foreclosure by changing the terms of the loan? Yes, you can especially if your mortgage is an adjustable loan. The lender will freeze interest rate, so the debtor will no longer worry about rising interest rates. Some lenders extend the amortization period. This process of changing terms of the loan is also known as note modification.
How about a reinstatement?
Due to unfortunate circumstances, it so happened that you missed two or three payments. You can still continue with the loan, provided you bring to speed the missed payments, pay the late fees and other costs.
Can you get a claim advance?
This will be applicable if you bought the home with less than 20% down payment. In that case, the loan will either be self-insured or you have a PMI, Private Mortgage Insurance. Companies providing PMI will also provide some cash in advance, which you can repay within a few years, interest fee.
Deed in lieu
You can try the deed in lieu option. While it may stop foreclosure, it might still affect your credit rating. In this case, you are signing the deed to the property back to the home. Find out if your lender agrees to it.
Can you stop foreclosure when you sell the property?
It is possible to remove the threat of foreclosure from above your head, if you know that you will not be able to pay the loan anytime in the near future. It could be due to loss of job, illness/accident, anything that could prevent you from working as before and paying the loans. In that case, sell the property so you can at least save your credit rating.