Postpone Foreclosure Sale
Foreclosure takes place when a homeowner is unable to make his/her mortgage payments on time. Everybody dreads it because a foreclosure sale will eventually lead to losing the ownership of your home. The best way to avoid a foreclosure is to get some mortgage help even before getting a mortgage for purchasing a property or home. In this way you will come to know of the amount that you can easily borrow and that which you can manage to pay back on time. Nevertheless, if somehow you missed making mortgage payments, you will receive a notice of foreclosure. The moment you get the notice, it is obvious to get panicky thinking that your home will be sold soon. However, the good thing is that a foreclosure notice is just the first step that may or may not lead to foreclosure sale. In other words, there are certain actions which can postpone foreclosure sale or even stop the whole process.
So, if you have received a foreclosure notice or haven’t made mortgage payments, there is still some hope to turn the situation in your favor. Thus, here are few steps that will help you postpone foreclosure sale and save your home from getting sold.
- Communication is the key –Communicating with your bank and informing them about reasons as to why you are unable to make mortgage payments can do wonders for you. You can also ask them for financial hardship packet or your lender may agree to offer loan modification that you can afford. Convince them as much as you can. Perhaps communication is the best way to postpone foreclosure sale.
- Ask your lender for forbearance – Forbearance may increase the amount you will need to pay eventually and even hurt your credit scores. Nevertheless for now, it will allow you to reduce or skip your payments until you have overcome the financial hardship that you are presently going through. Make sure to go through each and every detail of the forbearance contract provided by your mortgage company.
- Bankruptcy protection is another option – Filing for bankruptcy protection might not stop foreclosure sale but it may help in delaying one. Once you file for such protection, the court will issue an order that also includes “automatic stay”. This automatic stay will prevent the creditors from collecting anything immediately. Even if a creditor manages to obtain permission from the court to proceed further with collection activities, bankruptcy will generally postpone foreclosure sale for few months.