At some point, you may begin to think that foreclosure is your only option. You may become resigned to the fact that you are going to lose your home to the bank.
Before you go down this path, however, there are a few things you need to know. Most importantly, there are several alternatives to foreclosure that you need to consider.
First and foremost, you have to keep open the lines of communication with your bank. This will ensure that you are fully aware of your rights, and that they realize you don't want to lose your home to foreclosure.
Some of the best alternatives to foreclosure include:
-- Mortgage modification. With this, you work with your lender to refinance the debt or extend the term of your loan. With a lower monthly payment, you may find it easier to stay on track.
-- Forbearance. This is not something that every homeowner qualifies for, but it may work for you. This allows you to have your payments temporarily suspended.
-- Pre-foreclosure sale. If you don't want to wait for the foreclosure process to play out, this allows you to avoid it by selling your home for an amount less than what you owe.
If one or more of these strategies has piqued your interest, it is important to consult with your lender to determine if you qualify to take action. You may find that you qualify for none, one or several.
Foreclosure may seem inevitable, but this is not always the case. There are alternatives that can help avoid your home being repossessed.
Source: FindLaw, "Alternatives to Foreclosure," accessed Dec. 16, 2015