Out-of-control debt can cause a number of problems in your life, but few are as intimidating as the threat of foreclosure. The idea of the bank taking your home from you is what drives many people to finally file for bankruptcy.
Though bankruptcy is one of the most powerful tools you have for avoiding foreclosure, it isn’t right for everyone. What are a few other options you have if foreclosure is a possibility, but you aren’t ready to leap into bankruptcy?
Perhaps the most obvious way to deal with issues related to paying your mortgage is to eliminate your obligation to pay it each month by selling your house to someone else. This can also be a way to free up funds to pay toward other debt if you’re able to sell your home for a profit.
This option isn’t right for everyone, of course. You need to be living in an area where the housing market is strong. The sale of your home will need to be fairly fast and you’ll need to have somewhere else to live once the sale is complete. Your home must also be ready to list for sale, which might mean taking care of nagging maintenance issues or accepting a below-market price.
If selling your home seems like a good idea, but you aren’t quite in a position to list and sell it in the traditional sense, a short sale might be right for you.
Short sales make it possible for you to sell your home for less than what you owe on the mortgage. It requires coordination with your mortgage lender and it eliminates many of the benefits associated with selling a home in a regular manner. However, it can stop foreclosure on your mortgage and prevent complicating your financial situation further if all goes as planned.
For more information on how a short sale works, check out this information from Realtor.com.
If your mortgage has become unaffordable, you have a few options for making things right. If you qualify, you might be able to refinance your mortgage and pay less month-to-month and/or overall.
For those who don’t qualify to refinance, you might be able to request a forbearance or a payment plan with your mortgage lender.
Mortgage companies don’t want to foreclose because they don’t want the hassle and expense associated with taking ownership of a home. This means some lenders are willing to agree to put payments or hold or reduce payments for homeowners who are struggling to make ends meet. Forbearance and adjustments provide temporary relief and allow you to get back on track financially without the risk of losing your home hanging over your head.
If none of these solutions work for you, bankruptcy can still be an option for helping you avoid foreclosure proceedings. Filing might help you stay in your home or make it possible to negotiate a way out of your situation without the hassle of foreclosure.
Working with an experienced bankruptcy attorney is the best way to ensure you make a smart decision when it comes to dealing with foreclosure. For more information or to discuss your situation, with a bankruptcy attorney contact the Law Office of Robert M. Geller at (813) 254-5696 to schedule a Tampa bankruptcy lawyer consultation.
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