Avoiding foreclosure may seem to be an impossible task for many borrowers. For an average homeowner, foreclosure brings in a lot of embarrassment and can also be responsible for making a negative credit report for you. Therefore, it is every homeowner’s choice to avoid foreclosure at all costs. However, there are not many options available to the homeowners in this case. The time that you will get after the receipt of a foreclosure notice would hardly be 21 days. In such a small time frame, it becomes impossible for the people to think about any legal or non-legal procedures to happen. However, the good news is that you still have many options left with you, which will not only save the credit report, but might also be able to pass by the foreclosure notice altogether.
Short sale of a home that is up for foreclosure by the lien holder is very common these days. In fact, the popularity of this kind of option has made it possible for the people to look beyond loans and get rid of the complete liability as well. For short selling the home, a short sales agent is appointed who takes care of the home sale off process and also negotiates with the lender so that he can accept a smaller amount for waving off the complete loan. Ideally, you too would be left with ample money to relocate to a different location.
The other option for the borrower is to go for a loan modifications. Most of the lenders these days are welcoming the loan modification requests. The lenders do not have to accept a low amount and generally benefit with loan modifications. On the other hand, the borrowers also get a lot of benefits as they do not get a negative credit report and their house is also saved from foreclosure and litigation. Therefore, this is one of the options that suit all of the homeowners. The eligibility conditions are not very strict and the dealing is generally direct.
The final option for most of the borrowers is litigation. When everything else has failed and the case remains strong, the homeowners may avoid foreclosure totally and also save their houses and possession of property. The loan terms and repayment options can also be taken care of by the court. These three options work well for all homeowners and foreclosure is generally avoided.