There are several steps involved in avoiding foreclosure. I have so many friends call me regarding the auction of their property and asking for any type of help or advice. Ok so here it goes, to all of you who are facing the same types of problems as my friends.
First and foremost, you are going to want to get as much information as possible. Some homeowners really donâ€˜t understand that there are other options out there and it is important to ask how you can avoid foreclosure. This is a norm in society at this point, so there is no need to feel embarrassed.
A couple of options available to you are filing for bankruptcy, loan modification, deed-in-lieu, and short sale. These are the options that will help you prevent foreclosure. When filing for bankruptcy the banks might be able to help you keep your house and repay the lender under different terms set up for you. When attempting to get a loan modification, please donâ€˜t get your hopes up because there is a large number of homeowners who are being denied. A loan modification might reduce your monthly mortgage payment but it will not decrease your negative debt owed on the property. A deed-in-lieu is when you hand over the keys to the bank and just walk away from the property. In essence you are giving up the deed to avoid foreclosure. Lastly, if you are upside down on your property, and donâ€˜t want to be foreclosed on then a short sale is your best option. It is the nest way to get your negative debt cleared. The only issue with a short sale is that there can be some tax implications. These are your best options to avoiding foreclosure.