If you find that you are unable to make your mortgage payments in full or on time, it won't be long before you hear from your lender.
Tip: This is not a time to run and hide. Instead, you need to be open and honest with your lender, as this goes a long way in helping you find an immediate solution to your problem.
While some people give in and let their home slip into foreclosure, this isn't something you have to do. Here are several reasons why you want to prevent foreclosure if at all possible:
-- You will lose your home, meaning that you have to find somewhere else to live
-- You will find it difficult to qualify for another mortgage in the near future, meaning that you will have to rent
-- It's possible that the bank could post a Notice of Public Sale on your door, which can cause embarrassment
-- Your credit will take a big hit, with a foreclosure remaining on your credit report for 10 years
So, with all this in mind, it's easy to see that preventing foreclosure would be in your best interest. Even if you only do this long enough to sell your home, it will put you in a better position moving forward.
There are many steps you can take to prevent foreclosure, such as negotiating new loan terms with your lender. As long as you are honest with your lender and consider all your options, you may be able to implement a strategy to prevent foreclosure.
Source: The Balance, "Reasons to Short Sale Over a Foreclosure," accessed June 16, 2017