Alternatives to Foreclosure
How to Prevent Foreclosure of Your Home
It has been weeks since you missed your first mortgage payment, and you have been anxiously waiting to find out if – or when – the bank would contact you to inform you of their intention to foreclose on your home. Maybe you have not yet defaulted on your mortgage but are finding that it is difficult or impossible to keep up with your monthly payments. Whatever the circumstances, the key to success in avoiding a foreclosure is for you to get into action as early as possible. By taking the reins in the situation, you may be able to persuade the bank to cooperate with you in one of the many alternatives to foreclosure.
Deed in lieu, which is probably the simplest alternative to foreclosure, is also the most similar in its fundamentals. The difference is that instead of making the bank come after you, you approach them with a solution, and by doing so you can avoid many of the negative consequences of foreclosure. In a deed in lieu, you offer to surrender the deed to the property to the bank in exchange for forgiveness of the remainder of the debt. You still lose the home, but you avoid having a foreclosure on your credit report and also the liability of being sued for any deficiency on the home loan. Another approach is to negotiate a short sale, which involves selling a property which is worth less than the loan balance without being required to pay the difference between the sale price and the remainder of the loan.
Helping You Keep the House Through Loan Modification
If you are determined to keep your home, an Ocala foreclosure defense lawyer from The Law Offices of Justin McMurray, P.A. can help you negotiate with the bank for a loan modification which would make your mortgage payment more affordable. Loan modifications typically involve an extension of the loan term, or a reduction in the interest rate or even the remaining loan principal.