Avoid Foreclosure In The Final Stages
The easiest way to avoid foreclosure is by starting early. However, if it is too late for you to do that, there may still be ways that you can prevent or delay the bank from taking possession of your home.
Receiving a foreclosure notice is certainly not a time to give up. You should know that only around 5% of people lose their homes in the foreclosure process as set out by the state. Of the rest, around 40% get refinancing, 20% renegotiate their loan with the same lender, and 35% file for bankruptcy.
If you received a Notice Of Default then in most states you still have a legal 90 days before the bank can sell your home. In this situation you still have a chance of getting refinancing to cover the loan. You should do this as soon as possible before the credit agencies log the Notice and your credit rating drops.
If you received a Notice Of Sale, you will have much less time. This comes 90 days after the Notice Of Default and gives only 15-30 days until the property will be sold at the county courthouse. At this time the lender will be expecting you to move out and give them possession of the property.
Declaring bankruptcy can be a way to delay or even avoid the sale. You will need to come up with a way to hold on to your home after the bankruptcy but it will buy you some time and if you have other debts, it may be the best option for you.
In this situation you should see a good lawyer who specializes in foreclosure, debt management and the bankruptcy process. They can advise you on whether bankruptcy is a good option for you and how to manage it now and in the future.
Remember that these Notices are public so you will be vulnerable to scammers at this time. It is a good rule not to accept an offer from anybody who approaches you. Go to companies that you pick out, instead.
One foreclosure scam that you should be aware of is where somebody offers to take over your payments if you let them move into the house. Never agree to this. You have no rights in that situation and once the person has the keys they can simply rent out your house for the time that is left until foreclosure. They probably will not make a single payment and the bank will get the house.
You also may still be able to find financing to buy the house back at the very last moment, possibly even by buying it at the auction. However, it is better to buy it back ahead of the auction if you possibly can. Then you can negotiate with the bank directly. At the auction you may have competition from realtors and property development companies who will push the price up above what you owe.
Remember that you have a good chance and you should focus on all the possibilities that are open to you, all through the process, so that you can avoid foreclosure like many other people.
