Techniques to Stop Foreclosure FAST

The fastest way to stop foreclosure is to pay off the debt and penalties. Of course, if this were a possibility you probably wouldn’t be reading this. If you are like most homeowners who are facing foreclosure, you are probably confused about your options. There are a few fays that you can stop foreclosure on your home in a hurry, but every situation has unique benefits and drawbacks. In this article, we will learn about the most common ways homeowners can stop foreclosure fast.

Loan Payoff / Refinance

This method only works if you have enough time before the date of foreclosure. To know if this will work for you, you would have to ask the bank about a full payoff. Still, sometimes there is enough equity in a home for the homeowner to refinance the loan and pay off the original note in full, thus avoiding foreclosure. Keep in mind that because you are a risk to the new lender, you may have more difficulty finding a refinance and if you do, it will probably be at a much higher rate.

Bankruptcy

Both a Chapter 7 and a Chapter 13 will delay a foreclosure while the parties wait on the bankruptcy court to allow them to proceed. Bankruptcy of course is a last option that comes with it’s own set of pitfalls, namely the damage to your credit. It’s not a good idea to declare bankruptcy on account of the foreclosure alone.

Short Sale

A short sale is when you make arrangements with the lender that allow you to sell the home for less than you owe and have that considered as the full amount due. If you are considering a short sale, you need to have all of your figures in front of you and call your lender with the exact details to see if they would permit a short sale in your case. Do know that there can be IRS implications to a short sale.

Deed in Lieu of Foreclosure

You can offer the bank whats known as a “deed in lieu of foreclosure” on your property. This essentially is giving back the home to the bank to avoid the foreclosure process. By giving back the home, you can try and avoid the stress of the actual foreclosure and the further damage to your credit. This can be a good option if you decide that you can’t afford the home and have no time left to pursue other options.

All of these are common ways that people attempt to stop a foreclosure at the last minute. In a perfect situation, you would have more time to deal with the situation. When it comes to impending foreclosure, the more time you have the more options are available to you.

By: Irene Parkdale

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