How to Prevent a Foreclosure

Strategies to Prevent a Wrongful Foreclosure

Home foreclosure can be a frightening thing to go through. If your home is at risk of going down the path of foreclosure, there are a few strategies that you should examine before all hope is lost. Even if your home is not actually at risk of being foreclosed, banks or firms can sometimes make mistakes. If this happens, you will need to contact a wrongful foreclosure lawyer in Albuquerque in order to correct the situation. Here are some strategies to prevent a foreclosure, suggested by wrongful foreclosure lawyers in Albuquerque.

Stay Calm

The first step is to stay calm in order to assess the entire situation and evaluate where the problem actually is. If you are current on payments and the bank is still threating foreclosure a wrongful foreclosure attorney can help you navigate this process and reach a favorable outcome. Even if you have missed payments, first contact the bank and see if they have any options available for you to get caught up. Don’t listen to the bank if they tell you that you do not have any options. If you contact a wrongful foreclosure attorney, they may be able to suggest options that the bank representative is unaware of.

Alert the Lender of Late or Missed Payments

If you are behind on your payments or expect to be unable to make a payment, then you will need to contact your lender as soon as possible. The main goal here is to work with your lender to try and form an arrangement where you can permanently or temporarily modify your payments or mortgage in order to prevent or postpone foreclosure.

Refinance or Renegotiate the Loan

If your financial situation has changed since you first initiated your loan, then you may be able to work with your lender to alter your repayment plan entirely. You have the possibility of refinancing your loan to make the payments easier to handle and avoid foreclosure all together.

Get Forbearance on Your Loans

In some cases, you may be able to temporarily halt loan payments when times are tough. Lenders are often willing to work with you and your situation so that you can make the payments. Forbearance will allow you to temporarily postpone any payments or reduce them drastically so that you have time to secure a job, pay off other expenses, and prevent a foreclosure.

Sell the Property

If all of your options have been exhausted, making the difficult choice of selling the property will be your best and last resort option to prevent foreclosure. If you and your home go through a foreclosure, your home will likely be sold at a value less than it’s worth. If you can sell your home on your own without the court interfering, then you will be able to get a better price.

With any legal matter, especially in home foreclosures, it’s always wise to get professional assistance. If a legal action has been incorrectly filed against you, hire an affordable wrongful foreclosure lawyer in Albuquerque, like Eric Ortiz & Associates. If you are struggling with your financial situation and need advice, hiring a foreclosure attorney will help you fight the foreclosure with better results and may be much cheaper than you expect.