Common Alternatives to Foreclosure
Foreclosure can be a traumatic experience that leaves you without a home. However, there are alternatives you could pursue to help you keep your home. To learn more, don’t hesitate to contact an experienced foreclosure defense attorney for personalized guidance.
What Are the Alternatives to Foreclosure?
If you are looking for an alternative to foreclosure, your options will depend on your situation and goals. Some people want to stay in their homes no matter what, while others might be willing to sell their homes to avoid the worst outcomes. An experienced foreclosure attorney can review your case and find the best solution for your circumstances.
Foreclosure Alternatives to Save Your Home
The following foreclosure alternatives could allow you to stay in your home:
- Mortgage modification – Lenders are often willing to work with homeowners facing foreclosure. By extending the length of your mortgage or making other modifications, a lender may give you some breathing room and allow you to stay in your home.
- Special forbearance – A special forbearance plan is an agreement between you and your lender where you agree to a repayment plan to avoid foreclosure. This plan may or may not include modifying the terms of your mortgage. These agreements are more common in cases where homeowners have suffered a significant change in their expenses or income.
- Partial claim – The partial claim option involves working with your lender and the Federal Housing Administration (FHA) to obtain a one-time payment to make you current on your mortgage. If you can get this payment from the FHA’s insurance fund and stay current on your payments, you may be able to keep your home.
- Payment forgiveness – Lenders rarely decide to forgive a missed payment, but it does happen. A lender is more likely to forgive a missed payment if you can show you fell behind due to unforeseen circumstances.
Alternatives to Foreclosure If You Cannot Stay in Your Home
Some options instead of foreclosure if you can’t keep your home include:
- Pre-foreclosure sale – If you are eligible, selling your home before the lender forecloses means someone else becomes responsible for the property. A pre-foreclosure sale will prevent further legal action against you.
- Bankruptcy – When you file for bankruptcy, the courts set an automatic stay blocking a lender from continuing with foreclosure proceedings. Filing for bankruptcy can buy you much-needed time and allow you to clear some of your outstanding debts.
- Deed-in-lieu of foreclosure – You can voluntarily surrender your property to a lender before they can foreclose on you. You cannot keep your home if you turn over the deed. But this approach may protect your credit, making it easier to regain control over your finances.
Do I Need a Lawyer for Alternatives to Foreclosure?
A lawyer should be your first call if you are facing foreclosure. An attorney can delay the foreclosure process and help you find an acceptable alternative to foreclosure based on your circumstances. They can also represent you during legal proceedings or negotiations with your mortgage lender.
Contact Our Experienced Foreclosure Defense Attorneys to Help Save Your Home
If you are in danger of having your house foreclosed on, contact Amourgis & Associates, Attorneys at Law. Our experienced foreclosure defense attorneys can work to help save your home. Contact us today for a free case evaluation.
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At Amourgis & Associates, Attorneys at Law, we only represent consumers. We fight for regular people who have been seriously hurt in accidents. We fight for people who are being crushed by overwhelming debt and need a fresh start. We fight for individuals and families. Never businesses. Never insurance companies. We are loyal to the consumer.
