If you think there’s nothing more problematic than a clogged toilet or a leaking basement, think again. As a homeowner, there’s nothing more challenging than being on the verge of losing your home. Nobody wants to experience a home foreclosure. There are instances, however, that you just can’t attend to your obligation to your mortgage.
Your receipt of a Notice of Default (NOD) is not the end of it. Fortunately, there are ways to stop the foreclosure, or at least delay the process so you can find a solution or prepare yourself for what is going to happen down the road. Here are a few tips for you.
When you file for bankruptcy, an automatic stay order will be issued by the court. This way, you can get protection for your rights as the owner of the property. It opens up the chance to enter into a reaffirmation agreement with your lending company. Renegotiate with the lender and revise the terms and conditions of your mortgage loan based on your current financial situation. To learn more about this option, you may seek the help of a bankruptcy attorney in Little Rock.
Another possible solution is to pursue short sale. You can go for this option if the value of the property is less than the loan’s outstanding balance. In this option, the lending company renegotiates a lower balance. As a result, you can put the property at a better price in the market. For the lending company to allow a short sale, they will consider a discounted loan. They can get more savings that way.
You may also choose to have a loan modification. The process involving a loan mod can be complicated. You may seek the service of a lawyer specializing in this type of loan. The objective of this process is to create a new agreement with your lender. You can do this by extending the amortization period of the mortgage. The monthly payment will be less if you extend your loan’s life. This gives you the convenience to pay your outstanding balance.
You can stop a foreclosure by using smart and practical options. Learn more about your options by seeking professional help.