Anyone who has faced the reality of falling behind on their mortgage payments has probably wondered how to stop a foreclosure. Thankfully, there are several safety measures in place to help you keep your home. Negotiating with your lender is always the first step to avoiding foreclosure. They will usually work with you to help you avoid late payments or pay back any amounts that are owed. There are also government programs in place to help qualified homeowners avoid foreclosure. In extreme cases, filing for bankruptcy can stop or stall a foreclosure from happening. Keep reading to learn more about your options and how TitleMax® could help you get the extra cash that could save your home.
If you have been hit with a notice of default, you might be wondering about how to stop foreclosure from happening to your property. The good news is there are several ways to stop foreclosure before it happens. It’s best to avoid foreclosure at all costs because the impact on your credit rating could make it almost impossible to buy another house in the future. The first step should be to negotiate with your lender. As soon as you realize you’re having trouble making payments (and ideally before you’ve missed any), you should contact your lender and try to work out an alternate payment plan. In many cases, the lender will accept partial payments (or no payments) for a short amount of time. This is called forbearance. You might also be able to renegotiate your loan, which is known as loan modification. By modifying your loan, you might be able to stretch your loan over a longer term, which would create lower payments. Your lender might even agree to add the missed payments to your overall loan amount.
If negotiating with your lender doesn’t help, you might qualify for assistance from a government program. The Home Affordable Modification Program (HAMP) was created to help eligible homeowners readjust their mortgage terms and lower payments. On the other hand, the Home Affordable Refinance Plan (HARP) is meant for homeowners who are current on their payments but anticipate having trouble in the future. For more information on these programs, check out the official government Making Home Affordable website.
In many cases, bankruptcy can be a method for stopping foreclosure in its tracks. Bankruptcy should always be the last option, but if you are behind on your mortgage payments and have no other way to stay current, filing for Chapter 13 bankruptcy might be a good option. Chapter 13 allows homeowners to pay off the late/unpaid payments over a specific length of time. The downside is that you’ll have to continue paying your current mortgage payments while paying off the late payments. However, if you’re falling behind on payments because of a second or third mortgage, Chapter 13 might help to eliminate payments on those additional mortgages by categorizing them as “unsecured debt.” This could help you get back on your feet and keep your house.
Chapter 7 bankruptcy will not stop foreclosure, but it can stall it for several months. It also gives you time to save money, because you can live in your home for free during the bankruptcy process. Since Chapter 7 requires the liquidation of your assets, many people decide to begin selling their belongings on their own. Craigslist, eBay, and pawn shops are a great way to make extra money from any valuables you might have lying around.
At TitleMax®, we can help you get money fast. We specialize in auto title loans at extremely affordable rates! We understand that difficult times are a part of life and that traditional loans are sometimes out of the question. With TitleMax®, all credit is accepted and you could be approved right away. We are here to help everyone and do not require auto insurance for our loans. TitleMax® has been one of the most trusted car title lending companies in the United States since 1998. In as little as 30 minutes, we could help you get a loan and get you back on your feet. If you have any questions or concerns, please contact us online, by , or phone.