When you are facing foreclosure, finding alternatives can be a big help to your situation. It is almost impossible to get any assistance from your bank or mortgage lender. You do have other options to explore to help you stop the foreclosure process from happening and allow you to move on with your life. There are generally 3 foreclosure alternatives for homeowners. Time is of the essence when it comes to implementing any of the alternative foreclosure strategies discussed here. You should know that every day that passes in a foreclosure means one less day you have to act when finding a solution to avoid foreclosure. Exploring these alternative options can help you see through the murky waters of foreclosure.

Foreclosure Alternatives for Homeowners

1. Forbearance 

Contacting your bank or mortgage lender is one of the easiest things you can do if you have been notified of a pending foreclosure. You could ask for a little known loophole that is written into most mortgage deeds called forbearance. This is a direct negotiation with your mortgage holder that will give you extended time to make up any overdue mortgage payments before a foreclosure is started. Many times a lender will suspend monthly payments to allow you to catch up on your back payments. The frequency of your late payments and payment history will be a factor in granting forbearance.

2. Refinance

Regardless of the length of time you have owned your home, your home will have some equity that has been earned. A refinanced loan will cash out the equity that exists and pay you by check . This sum of money can be used to payoff your past due mortgage payments. This could help you stop foreclosure if your lender is willing to discuss refinancing options with you. You should know that refinanced mortgages can increase the interest rate that is linked to your new mortgage. If you have trouble paying your payments now, refinancing might not be the right solution for you.

3. Short Sale

If your bank or mortgage lender has already set a date of property sale, the first two solutions will not help you. The short sale is one of your strongest assets as a homeowner. By arranging the sale of your home before a lender sale, you can avoid payments and penalties that are often assessed during foreclosure. Your bank or lender might agree to a short sale and settle for less than the total balance of your mortgage. This allows you to walk away free and clear from your mortgage and still maintain your good credit.

Get Help to Avoid Foreclosure Today

Call Avoid Foreclosure at 1-800-589-4106 to get fast help and stop foreclosure on your property.