There are quite a few options available to stop foreclosure of your home. Here are 6 options to help stop foreclosure, although it is recommended to seak the advice of foreclosure from an attorney:
1. Reinstatement of the loan. This means you bring the loan current by paying all the payments, legal fees, late charges and other fees.
2. Payoff the loan in full. It may not be a realistic option for many, but it is an option.
3. Deed-in-Lieu of foreclosure. This means that you hand over the property to the bank. The bank may not be interested in this one unless the property is worth more than what you currently owe. The advice of a foreclosure attorney would be a great idea to check in with on this idea.
4. Sell the property. If your home is worth more than what you owe the bank, then this can be a good option. If your house is not worth more than what you owe, then you might be able to get the bank to agree to a short sale. In a short sale, the bank agrees to take less money than what is owed. If you want to stop foreclosure using this option, you will need to make sure you have a good realtor that understands and knows the short sale process.
5. File bankruptcy. A Chapter 13 bankruptcy is basically a reorganization of your debts. It can temporarily stop foreclosure and can typically involve setting up a 3 to 5 year plan to repay lenders. This can be a good option if you are having problems meeting all of your debts. You will need to advice and service of a bankruptcy attorney with this option.
6. Renegotiate with the lender. This is one option before foreclosure. Most banks will try to work with you and allow the bank to negotiate putting the loan bank in service. It could mean reducing payments, forbearance (temporarily stop making payments) or modifying loan terms.
Try not to rule anything out if you are going through foreclosure. Use your judgment and contact a professional to help with your next steps.