If a homeowner misses three or more mortgage payments, their home can go into foreclosure. This means that the lender can take possession of the home as repayment of the loan. If a homeowner wants to stop foreclosures in Lithonia, GA, there are a few tips that they should follow.
Foreclosure Workout
The homeowner can work out a repayment plan up until the time that the home goes up for auction. The best way to stop a foreclosure is to find a way to get the money to make the necessary payments to catch up. If the homeowner can borrow the money from a friend or family member, or sell off some assets to catch up, it will be worth it.
Rent out the Home
If the homeowner cannot afford to make the payments on their mortgage and they are concerned about foreclosure, they can rent out their home. This will give them time to find a second job or to sell off assets while their mortgage payments are being made by the tenants.
File for Bankruptcy
A bankruptcy will stop a foreclosure in its tracks. As soon as the bankruptcy petition is filed, it is against the law for debt collections, including the mortgage lender, to continue trying to recover the debt. Before the homeowner files for bankruptcy, they should hire an attorney. Not only is bankruptcy a complicated process, the homeowner should get some legal advice. If the homeowner wants a free consultation from a bankruptcy lawyer, they should visit website. The bankruptcy won’t cancel out the payments owed though, but it will give the homeowner time to come up with the money.
Short Sale
If a person’s home is going to be foreclosed on and they are fine with letting the home go, they should consider a short sale. If the owner can find a buyer for the home before the auction is scheduled and the lender approves, they can sell the home quickly and it won’t have a negative effect on their credit. Since the bank will sell the home anyway, they often approve of short sale requests. It will save the bank the time and money it takes to sell the home themselves. If a homeowner falls behind on their mortgage payments, there are ways that they can stop foreclosures in Lithonia, GA.
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