There is nothing worse than the thought of your lender repossessing the home in which you live. Unfortunately, if you begin to miss mortgage payments, you could find yourself in this difficult situation.
A notice of foreclosure is serious business, but it doesn't mean the bank is going to immediately repossess your home. You have time to make things right, as long as you take the proper approach.
Here are three of the best ways to stop foreclosure:
Bankruptcy: Although it will have a negative impact on many areas of your finances, such as a red mark on your credit report, it can help stop the foreclosure process.
Short sale: With this, the lender agrees to let you sell your home for less than what you owe. You don't get to remain in your home, but you are able to avoid foreclosure and all the negative consequences associated with it.
Loan modification: You should never assume that your lender wants to repossess your home. Instead, they're more than willing to work with you to find a solution. Contact your lender to learn more about loan modification programs that can help you catch up on missed payments and remain in your home.
These are not the only ways to stop foreclosure, but they are among the most effective.
If you come to realize that bankruptcy makes the most sense of these and other options, turn your focus to the pros and cons of both Chapter 7 and Chapter 13. A New Jersey bankruptcy attorney can help you determine how to best move forward.