Foreclosure isn’t a word anyone wants to hear. But it’s certainly something you want to stop or avoid altogether.
And you can.
Numerous loss mitigation programs exist with the intent of helping troubled homeowners avoid losing their home.
Foreclosure Prevention and Avoidance Programs
Each alternative to foreclosure has its strengths and weaknesses. Your situation will determine what program is best for you.
- Loan modification. This is usually the first idea anyone has when it comes to avoiding foreclosure. Get your loan modified, pay less every month and you’re home free, right? That might be the case and hopefully it is, but it’s not for everyone.
Find another exit. There are plenty of alternatives to foreclosure.
- Short Sale. Keeping the home isn’t always in the cards. And maybe you don’t even want to keep it. A short sale is a far better alternative to foreclosure and let’s you sell home for less than what you owe.
- Forbearance. This is more of a solution geared toward those that need a temporary resolution to get them back on track.
- Deed-in-lieu of Foreclosure. The bank ends up with your home, but you are free of all the personal indebtedness and avoid the very public nature of a foreclosure.
There are other programs as well including the option of simply walking away and letting the process play out.
Talk to someone knowledgeable about loss mitigation and the foreclosure process and find out what options exist. A good professional will be able to talk you through all your options and make a suggestion that fits your personal situation.
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