Options You Have When Facing Foreclosure On Your Home

According to foreclosure laws, lenders are allowed to begin the foreclosure process on a home once a borrower is 120 days past-due on their loan. If you are close to this point or past it, you will need to come up with a plan if you plan on stopping the foreclosure from going through. Fortunately, there are some different options you could use to stop the foreclosure from going through, and here are three of the main choices you have.

Fight the foreclosure

One option you could try involves fighting the foreclosure. Fighting a foreclosure generally means proving that the lender is not following the law with pursuing the foreclosure on your home. This could possibly mean that the lender did not wait long enough before initiating the process, or it could be for a different reason. In any case, this process is not easy, and you will need to hire a lawyer to assist you if this is the path you choose.

Modify the loan

A second option you have in this situation is to modify the loan. A loan modification is also not an easy process, but it can be a great solution for many reasons. When you use this option, you and your lender basically reach an agreement on new terms for your loan. If you can reach this agreement, your loan terms change to the new set of terms, and you get to keep your home as long as you follow the new terms. When using this option, you might be able to get your loan balance lowered, and you might be able to get a lower interest rate. You will also be able to reach an agreement where you are considered current on your loan.

File for Chapter 13 bankruptcy

The other option you could consider is using Chapter 13 bankruptcy. Through this option, you save your home simply by filing the Chapter 13 documents. Once you do this, the court issues an order that stops your lender from pursuing the foreclosure on your home. The end result is that you get to keep your home; however, you will have to follow a strict repayment plan through the bankruptcy court for up to five years.

If you want to save your home from a foreclosure, you should consider hiring a foreclosure attorney for help. Foreclosure attorneys are experts with handling and stopping foreclosures, and a lawyer can help you create a plan to fight your case.

For more information, contact a foreclosure attorney like Jeffery A Fournier Esquire.