If Your A Homeowner About To Lose Your Home – Here Is A Review On Your Foreclosure Options

So are you a homeowner who suddenly due to unforeseen events is facing foreclosure of your home? If you are, then you may be unsure as to what options are available to you. You may be surprised that you actually do have viable options open to you to avoid foreclosure and losing your home. When foreclosure is avoided, you can then either keep your home as well as keep your credit in good standing.

When you are facing foreclosure, the first obvious step you should take is to approach your lending bank. It’s always best to do this before the foreclosure actually arises. Even once it does, it is still not really too late to schedule a meeting with your lender at your bank. If you can prove to them that you intend to and can get your mortgage back in good standing, or your financial condition is only temporary, your lender may just hold off on foreclosing.

The Banks Don’t Want To Do It
Even if your bank is willing to work with you, at times, even keeping your home may not always be in your best interest. If you are for instance having long-term financial hardships, based on say suddenly losing a spouse or any other unforeseen incidents, it may just be better to just sell your home before it goes into foreclosure. Discuss this with your lender, as they may agree with you to allow the proceeds of a pre-foreclosure sale. They may even hold off on the process of foreclosing your home, giving you time to find a new buyer. When you are selling your home as a pre-foreclosure, your home can then be listed as ‘For Sale By Owner’ or through a Realtor.

Look Out For Investors
Even if you don’t consider a pre-foreclosure sale of your home as an option, you should be able to get some offers from hopeful buyers. When you become delinquent on your mortgage payments, especially if it reaches the point of foreclosure, this information quickly becomes public knowledge. Some buyers, primarily professional investors, search and seek out those who are in financial trouble. Although having a stranger appear at your door or they calling you, offering to buy your house may be unexpected, it may be a decision that you may want to think about.

Another option open to you as a homeowner during foreclosure to hire an attorney. When doing so, find one that specialties in foreclosures or real estate. A lawyer will usually advise you on what the next steps are to take. They will also help you understand the pros and cons of pre-foreclosure sales. In some US states, attorneys will and suggest using bankruptcy as a tactic to stop the foreclosure proceeding. Although this is not a long-term fix, it may buy you more time to make the right decision. It’s important to note that bankruptcy itself has its own advantages and disadvantages.

Most states have what are commonly known as redemption period laws. These laws are designed to protect you as a homeowner. They give you a stated grace period to reclaim back your home. If you can then make good on your mortgage payment, the foreclosure proceedings will stop. The States that have these laws in place, often allows you to reclaim your property back, even after it has been already sold at a foreclosure auction. This provided you act within the allotted time period.

If you happen to live in a State where you’re not given a grace or redemption period, you still have the option of buying your home back. Anyone can place a bid in for a foreclosed home at an auction. With that said, placing a bid and winning the bid are two different things, as it usually takes a significant amount of money as a down payment to reclaim your home. Your lender will also most likely attend the auction waiting to buy the home. If the bids happen to be not high enough, the bankers will usually buy the home themselves. This is done to minimize the potential money lost in the home. Later, your home will then be available for sale again as a REO (Real Estate Owned) home.