The loss of your family home is one of the worst things that can happen. Not only will you lose your place of shelter, but you may also lose a considerable amount of wealth that you've accumulated as equity in the value of your home. Therefore, if you're facing the threat of foreclosure by your bank due to not be able to pay your home mortgage, you'll want to act as swiftly as possible.
Here are three strategies to help deal with the threat of foreclosure:
Negotiate with your lender: Your lender does not want to foreclose on your home. It wants you to pay your payments on time, satisfy the terms of your loan and earn interest. For this reason, your lender may be willing to negotiate with you to lower your monthly payments, give you more time to get caught up or modify the terms of your loan agreement.
Litigate the matter: You may be able to seek a temporary restraining order (TRO) on the bank that wants to foreclose your home. Other strategies of foreclosure defense may also be useful if you're facing a situation like this.
Liquidate the home: In some cases, you can conduct a deed-in-lieu of foreclosure, a short sale, or some other way of bypassing the threat of foreclosure by liquidating your ownership of the home.
Other strategies could help a homeowner facing the threat of foreclosure. Bankruptcy, for example, could be a useful way to stop or pause a bankruptcy from continuing. If you want to respond to your foreclosure in a legally appropriate fashion, our law firm has more information on our website.