Sometimes, certain issues in life are unforeseeable. You may have thought that you could do something before it became too late, but now that your house is officially going into foreclosure, you may find yourself frantically panicking and wondering how to stop foreclosure at the last minute.
If you’ve fallen behind financially and will need to know how to stop foreclosure at the last minute, this post will give you 5 of the best options available for you to stop foreclosure at the last minute today and suggest the option most likely to give you immediate respite without the dire consequences many of the other options carry.
Here’s how to stop foreclosure at the last minute:
File for bankruptcy:
If your house is going into foreclosure and you are searching for great ways to stop the foreclosure at the last minute, then filing for bankruptcy is one viable option available to you. Depending on the kind of bankruptcy you file for, certain privileges will be awarded to you, one of which is called an “automatic stay.”
An automatic stay will halt the entire process and temporarily prevent your mortgage lender from taking drastic actions against you. You should note, however, that filing for bankruptcy will have far-reaching consequences on your credit score and overall financial health for years to come.
Modify the terms of your loan:
Another option for people looking for how to stop foreclosure at the last minute is to modify the terms of your loan agreement with your mortgage lender. This option can be quite dicey because the power to modify the terms of your loan ultimately lies with your mortgage lender. Some lenders may be open to drawing up a new, more favorable contract, and others may simply not be if it isn’t favorable to them.
Overall, if your mortgage lender agrees to modify the terms of your contract, then you may be able to start making payments that are less than the amount you originally owed. However, this does not mean you are absolved of your responsibility to pay your mortgage and may not be the best option for people in dire need of financial help.
File a lawsuit to stop the foreclosure at the last minute:
This is the least advisable option, but, if the foreclosure on your home was placed without the court’s consent, then you may be able to take the issue back to them. This option is not without its shortcomings, though.
First, you will be required to pay hefty court costs and attorney fees and provide ample evidence that the mortgage lender initiated the foreclosure non-judicially.
If this works, then you may be able to get the court to place a temporary halt on the foreclosure and challenge your mortgage lender’s right to initiate a foreclosure on your property. Nevertheless, it may be unwise to spend your already limited resources on an expensive lawsuit.
Talk to an attorney
Although not an immediate solution, consulting with an attorney may give you a better insight regarding what options are legally available to you. This may help you plan and execute your next step more effectively.
Deed in lieu of foreclosure:
If you are desperate to find how to stop foreclosure at the last minute, then a deed in lieu of foreclosure may be one option to consider. A deed in lieu of foreclosure transfers the ownership of your property to your mortgage lender through a short-sale process. This may be an acceptable last-minute resort if your mortgage lender agrees to it. Bear in mind, however, that this can have far-reaching negative tax consequences and also impact your credit rating.
Put your house on the market as quickly as possible:
This is our favorite option regarding how to stop foreclosure at the last minute. If you can get a buyer willing to buy your house as it is, without a need for costly repairs and renovations, then selling your house is one of the best ways to get cash to repay the loan and avoid a potential foreclosure that will have drastic effects of your credit score.
Tgaz Investments has helped many buyers looking for how to stop foreclosure at the last minute. We will make you a same-day offer and close the deal in as little as a couple of days. Give Tammy a call today at (480)-848-7173 to begin the process of getting your home off the foreclosure list.