Once a foreclosure has taken place, the homeowner has relinquished the opportunity to salvage his home. The owner no longer has ownership of the property and may be forced to vacate via a dispossessory warrant if he fails to do so voluntarily. But before the house has been foreclosed upon, you may be able to prevent repossession by the mortgage company or an investor. If your home has been scheduled for foreclosure and you want to suspend the process, the following actions can be taken before foreclosure occurs.
Make Payments or Arrange a Workout
This may seem simplistic, but often just making a commitment to catch up on payments or devise a payment schedule with the mortgage company can save your home from foreclosure. Start by paying the overdue amount. Most mortgage companies will willingly accept these payments to halt the foreclosure. If the arrears cannot be paid in full, the homeowner can arrange a workout or a payment plan with the mortgage company. This may take the form of a repayment plan, forbearance agreement, or loan modification.
Sell the Home
The homeowner can attempt to sell the home on his own before it is seized by the mortgage company. If you still have equity in the home, use a real estate agent to sell the home so that you can apply the sale proceeds to satisfy the loan in full. Avoid selling the home for an amount that is less than the remaining debt on the mortgage (otherwise known as a short sale). This may result in a lawsuit for the deficiency amount and exposure to negative tax implications.
Consider Cash for Keys
In some cases, the lender will pay the homeowner to leave the home in an expeditious manner and avoid foreclosure. The cash can be used for moving and relocating costs. This enables the lender to repossess the home without resorting to eviction and with the knowledge that the home is in reasonably good condition. In this situation, homeowners should ensure that they are released from any liability on the mortgage debt.
File for Bankruptcy
As a last resort, you can file for bankruptcy before foreclosure takes place. It is important to contact an attorney if you decide to file for bankruptcy. Under bankruptcy, you may be subject to a repayment plan, a loan modification arrangement, or another post-bankruptcy plan.
The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at http://www.markweinsteinlaw.com to find out how they can advise you.