Foreclosure is not your only option

        Losing your home to foreclosure due to an inability to keep up with your monthly mortgage payments is one of life’s most unpleasant experiences. So it’s a good idea to understand the available alternatives should the worst occur. Below is a list of some of the most common alternatives to foreclosure.

Short Sale

   A short sale is when you sell your home for less than what you owe your lender. This can be difficult because most lenders are hesitant to agree to a short sale. However if you contact them as soon as you realize you are facing financial difficulty this process may be easier. This process does have its dis-advantages in that it will negatively effect your credit score, but not nearly as much as a foreclosure.  

Renegotiate the loan

   In most cases lenders do not want your house, they are not in the Real Estate industry they are in the lending industry. With this being said most are also willing to work with you on the terms of  your loan. If you are honest and upfront with them they be willing to make various changes to your loan, such as interest rate, extend payment deadlines or special forbearance.

Bankruptcy

  When you file bankruptcy you are ultimately saying that you do not have the finances to meet your current debts. Bankruptcy will buy you some time from the lender. It allows you a period of time where the lender is forced to stop all legal actions he / she is taking against you. This may allow you some time to pull together the funds to help in bring your loan current. It will not stop you from loosing your home, the only way this is possible is to bring the note current, but sometimes just a little time can make a huge difference.

This is just a small list of your options if you fear you are headed towards foreclosure it is important to contact your lender immediately. Both lender and buyer should be proactive in resolving possible foreclosures since it is a win-win for both parties. Contact your local Real Estate Agent  or Attorney for more information on how they can assist you. Remember you don't have to face this alone seek help from those willing to lend a hand.