Having a home requires a lot of financial preparation and discipline, but sometimes financial circumstances spiral down even to the best of us. If you find yourself needing to stop the foreclosure process on your home, know that you’re not the only person in the Denver area in this position. A lot of people facing foreclosure feel like they’re the only person in the world in their predicament. You still have a chance to save your home if you didn’t already turn it over to your lender. As long as you do the required work, you can put in one last-ditch effort to take back your home. This article will give you five tips for saving your home from foreclosure.
Negotiate With Your Lender
Your bank will lose a lot of money if they take your home from you. For this reason, they will want to negotiate with you. Talk to your lender about the options that you currently have. Some of the options that your lender may offer you include the following:
- Lowering your monthly payment
- Lowering your interest rate
- Erasing past due balances
Consider Getting A Hard Money Loan
Many people who find themselves in financial distress take out what is known as hard money loans. Hard money lenders operate as private citizens who ask for a higher-than-average return on investment when you pay back the money. If you consider this option, realize that this can only work as a temporary fix. Get a regular mortgage the second you can get one.
Consider Doing a Short Sale
Your bank may not go for a short sale, but it’s worth a try. That’s because your lender will take a lot less money for your home than you owe. If your bank agrees to a short sale, you won’t have to go through the negative financial effects such as bankruptcy.
Contact a HUD Counselor
The Department of Housing and Urban Development offers free or inexpensive counseling for Americans facing foreclosure. These counselors can help you with your finances, explore your options, and even represent you in meetings with your bank.
Declaring Bankruptcy As A Last Result
If all the other tips on this list fail, you might have to declare bankruptcy as a last resort. But bankruptcy doesn’t have to be the end of the world. If you find yourself in this situation, hire a bankruptcy attorney to mitigate some of the harsher consequences.
Some of the tasks that a Denver bankruptcy attorney can do to help with your foreclosure include some of the following activities:
- Help you file Chapter 13 bankruptcy to strip away your 2nd and 3rd mortgages
- Use Chapter 13 bankruptcy to force the lender to let you to pay back your past due balance
- Protect you against predatory lenders
- Negotiate alternative payment terms with your lender
Your impending foreclosure doesn’t have to be a source of shame. You might have some control over the process by working with your lender at the first sign of financial trouble, learning about your rights, and hiring an attorney if things quickly get over your head.
Last but not least…
Please contact us to see if we can help by selling your house for full market value. This past year, we helped a friend whose home was heading to an auction block. We listed the house for sale in under 48 hours, negotiated a full market value contract, prevented the home from going to auction, paid the bank in full and helped our client walk with about $20,000 in proceeds with which to pay other bills and have some walking around money. Call Rick at 303.589.2320 for a confidential discussion.