When people facing foreclosure come to our office, it’s often because they feel like they’ve run out of options. But when it comes to foreclosure, this is hardly ever the case. There are many foreclosure alternatives that can save your home and/or save your credit, depending on your goals and your financial circumstances. Some options for avoiding foreclosure include:
- Loan modification– A successful loan modification can lower your monthly mortgage payment, extend the period of your home loan, offset your debt, and stop foreclosure.
- Chapter 13 bankruptcy– Chapter 13 bankruptcy allows you to make up mortgage arrears through your Chapter 13 repayment plan, and bankruptcy’s automatic stay stops the foreclosure process.
- Loan reinstatement– Reinstating a loan brings a delinquent loan current and stops a foreclosure because you can catch up on payments in default, as well as fees and expenses incurred as a result of the default.
- Short sale – Selling your home for less than you owe your lender—a “short” sale—prevents you from having to go through a foreclosure, and it’s much less harmful to your credit.
- Deed in lieu– With a deed in lieu of foreclosure, you voluntarily transfer the ownership of your home to your lender in exchange for a release from your mortgage loan and payments.
- Cash for keys– When foreclosure is imminent, your lender may be willing to offer you “cash for keys” if you vacate your home in a timely fashion. This enables you to avoid deficiency liability.
While one or more of these foreclosure alternatives are available to most struggling homeowners, they can be difficult to carry through smoothly and successfully. For example, you may wish to unburden yourself of a home you can’t afford through a short sale, but it may be difficult to convince your lender to accept losing money, as well as the property that secured it. At Hedtke Law Firm, we have extensive experience evaluating foreclosure alternatives on behalf of our clients and then moving forward aggressively to reach a positive conclusion when all is said and done.
The central matter of this arrangement is making sure you have enough income to be able to pay all your normal monthly bills and also the arrearages on the mortgage back over five years. Please call the Hedtke Law Firm to discuss pre-foreclosure attorney Pomonaissues today or schedule an appointment at http://pomonabankruptcy.com/.