A foreclosure is not just something that happens to a house; it is the loss of a home and a tragic experience for the family that loves it. It is also a financially devastating event that takes away the largest asset most people will ever have and something they spent years saving for and dreaming about. A looming foreclosure can be stopped. There are many options available to homeowners in distress.
Learn Your Rights
Stop foreclosures in Lithonia by knowing the law. Predatory lending and extreme collection measures are against the law. Homeowners have numerous legal rights when they fall behind in their debts. Many federal and state laws apply so it is important for people to research both and make certain their rights are respected.
Talk It Over
Contact the lender to see what options they may have to offer. If done early most people will have a high enough credit rating to make it possible to refinance or establish a repayment plan. The majority of mortgage lenders want their money and not the expense of foreclosing on a home. This makes them much more flexible than most people expect.
Eliminate the Extras
Sell off unneeded property and belongings. Cash in savings bonds and consider borrowing from a retirement plan. These solutions only work if the amount owed is a reasonable sum and borrowing additional money will not cause the family to be cash-strapped afterwards.
File for Bankruptcy
Stop foreclosures in Lithonia by filing for bankruptcy. It is common for people to mistakenly believe that they will lose everything they own if they go bankrupt. There are many benefits to bankruptcy. It stops foreclosure proceedings immediately and puts them on hold for the length of time it takes for the bankruptcy to go through the court system. During the bankruptcy, the homeowner can work with the lender to reaffirm the loan, accumulate the money needed to pay the shortage and take advantage of programs the lender may have available.
Most solutions like these only make sense if the lender missed payments or got behind on their loan due to a temporary problem. As long as the mortgage payments fit into the budget of the homeowner it is possible to save a beloved home.
