Getting your home taken back by the bank or mortgage company is not a pleasant experience especially since it leaves you homeless and without a solid investment for your future. While you may be struggling financially to make ends meet, there are things that you can do to stop foreclosure from occurring on your home.
Contacting your lender is one of the first things you should do if you are facing foreclosure or even if you are simply struggling to make your monthly mortgage payment. Lenders understand that certain situations cause financial difficulty and hardship, and they want to work with you. Most have some type of payment plan that reduces the cost of your monthly payment or suspends payment for a period of months until you can get back on your feet financially. You may also have the option to lower your monthly mortgage payment permanently by refinancing your mortgage for a longer time period.
When contacting your lender in an effort to stop foreclosure from occurring on your property it is important that you be honest with them. Making promises to pay and not following through on them will only make your lender less cooperative in working out a resolution. If you can only pay half of your monthly mortgage payment state that to your lender rather than promising to pay more. Your lender understands things happen and will be more apt to work with you under these circumstances.
Should your mortgage company not be willing to work with you to stop foreclosure you do have the option to try and refinance your mortgage with another lender. While this may not be doable in all cases, some lenders may work with you if you have a considerable amount of your mortgage paid off. If you refinance before you fall behind on your mortgage payments, you may find that you can even lower your monthly payments by finding a bank or financial institution that offers a lower interest rate.
Your final option in order to stop foreclosure from occurring on your home is to sell it. Doing so will provide you with the money you need to pay back your lender, and you may find that you even have a little extra to pay for a rental property or a down payment on another house. The benefit of selling your home rather than simply letting it go back to your lender is the fact that you don't lose all the money you already invested in your house. In addition, you also don't have the foreclosure on your credit statement although it may reflect that you were behind on your payments.
Facing foreclosure can be mentally and emotionally exhausting. However, there are several things that you can do to stop the process before your lender or financial institution takes back your home and evicts you. Of course the best thing to do is never miss a mortgage payment in the beginning since this will keep you and your lender on good terms and away from discussions about foreclosure.