Alternatives to Foreclosure
When you are facing
foreclosure, you have alternatives to consider. Your options may vary depending on
whether you wish to keep your home or are interested in selling the property
foreclosure off your credit report.
What options are there?
Depending on the case, there are different options your attorney may suggest:
Deed in lieu - in essence, a
deed in lieu of foreclosure involves you signing over the property to the lender in
exchange for the lender cancelling the mortgage. The lender agrees to
take back the property rather than follow through with foreclosure.
Short sale - a
short sale involves a borrower that sells his or her home for less than it is worth.
In some cases, a lender may agree to accept the lower payoff amount, or
the borrower will need to negotiate with the lender in terms of the remaining
portion of the loan.
Bankruptcy - filing for bankruptcy will place an automatic stay on foreclosure
proceedings, and a
Chapter 13 bankruptcy may allow a debtor to work out past due mortgage payments and penalties
in his or her repayment plan. Depending on the case, bankruptcy may allow
you to save your home or may grant you a window of opportunity to complete
a short sale.
Loan modification - a process that involves negotiating for different mortgage terms. Depending
on the case, a loan modification may save a borrower thousands or more
than a hundred thousand dollars over the life of his or her mortgage.
A foreclosure defense lawyer at LeavenLaw can assist you in exploring your
potential alternatives to foreclosure in order to make the choice that
is best for your financial goals now and in the future.