Stop Foreclosure

In today’s tough economic times, it is no longer a rare occasion that a person finds themselves in a difficult economic hardship. Whether due to a layoff, a long illness or other types of debt that have carried over, many people today are dealing with the prospect of foreclosure.

If you are late with your mortgage payments, the bank can and in many circumstances will start foreclosure proceedings. Depending on the mortgage company it can 2 months, 3 months or 6 months when a bank will decide it can no longer wait for your financial situation to improve and will move to reclaim its legally owned property. What is a homeowner to do?

There are two important things that must be done immediately. Get a lawyer and always remain in contact with your loan holder. A lawyer is necessary because they can provide advice for bankrupt and restructuring of debt proceeding and work out a strategy where you may be able to work out a deal or at least keep your house as long as possible while hoping your financial situation improves.

It is always important to remain in contact with the loan holder. This tells the holder that you are trying to be responsible, responsive, and open to suggestions on restructuring your debt in order to make some agreement that might work for both parties. Just as you don’t want to foreclose; most banks actually lose money foreclosing on your property as well. They will try to cut their losses as much as possible and if that includes working out a deal with you to keep the house, it may be in their best interest.