First of all, there is no such thing as a magic method to end the entire foreclosure process, but do not despair as there are a couple of ways that might resolve all your problems, either by continuing to stay in the house and avoid foreclosure or by getting out and trying to keep the financial losses to a minimum level.
Here are 5 proven ways to stop foreclosure:
1. Figure out a repayment plan with your lender – you need to put down a part of the money you are behind now and try to pay back the rest over a period of a couple of months, in addition to what you pay now per month. In most situations, these established repayment plans can be worked through the lender’s loss migration department, and most likely, you will have to pay even twice per month in comparison to what you have paid before.
2. A viable alternative would be to have a discussion with your lender about modifying the terms of the loan to state that the missed payments you were not able to pay are spread out over the entire life of the loan or put on the back end of it. This procedure is also known as mortgage modification or loan modification. However, there are many lenders that will not be able to do this because they do not hold the paper that needs to be modified to the new agreements both parties have established.
3. Think about refinancing by finding either a traditional lender or a hard money lender who will help you with the foreclosure refinance loans. In order to get qualified for such a loan, you need to have lots of equity and a substantial income because the interest rates in such a situation are over 10%. However, it still is a good way to have a fresh new start with a lender.
4. A common method among people that have problems with their foreclosure is selling the house to a member of the family or a friend. Other people decide to sell the property to a private investor. By doing so, you will clear off the foreclosed loan on the house and will use someone else’s good credit in order to obtain a new loan and stay in the house.
5. Of course, a good way of avoiding foreclosure is by finding a willing and able buyer of the estate. You have the possibility to sell outright in case the property is worth enough and start searching for another place to stay in. If you are lucky enough to find a buyer, you will avoid the foreclosure problems and start focusing on finding a new real estate, without damaging your credit rating very much.
As you can see, when facing foreclosure problems, it shouldn’t be the end of the world as there are a couple of ways to get rid of all these financial problems. In addition, there are other methods in such a situation like bringing various complaints to regulatory agencies or suing the bank. However, both involve spending a lot of money on legal involvement and the possibility to avoid foreclosure is not guaranteed. It is entirely up to you to decide what method will work best for your situation.