There are a few options you can do to try and avoid the foreclosure process and several things you can do to delay it too. Your only assurance in permanently stopping a foreclosure is to pay what is owed.
If you are not able to get caught up and stay current with your mortgage payments then your lender has the right to take your property and sell it at a public auction. Some people do not realize they already agreed to pay on time or forfeit their property in the original mortgage documents when the loan was first made.
If you are having trouble making your payments, do not ignore the situation. It is best to contact your lender, tell them about your situation and work out some arrangement. They are required by law and likely by their internal policy to make attempts to contact you when payments become irregular. Most lenders are more interested in receiving the payments and resort to taking the collateral (your property) only as a last resort.
If your situation is temporary, just call and make temporary arrangements like:
If you simply cannot afford to keep your home here are a couple of ways to make your departure less painful than a foreclosure:
The worst possible outcome for borrowers in financial trouble is to simply do nothing and allow your lender to take your house in a foreclosure process and sell it on the open market in a public auction. Foreclosure will remain on your credit for 7 years, likely preventing you from returning to homeownership until then.
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Elegant Property Buyers, Inc.
25 Crescent Drive A-220
Pleasant Hill, CA 94523 USA