What do I do if I’m facing foreclosure?
Have you recently been under a lot of stress because you haven’t been able to complete your mortgage payments? Are you worried about losing your home or the consequences you might have to face?
Foreclosure refers to a legal process in which the lender forces the sale of the property to recover the amount they initially gave to you as a loan. This is done as collateral damage when you stop making the mortgage installments.
Mentioned below are a few tips and methods for you to follow if you’re facing a Foreclosure and have no idea what to do.
1. File for bankruptcy
If you’re facing a foreclosure and have no idea what to do, then one of the easiest ways out is to file for bankruptcy. Filing for bankruptcy will ensure that the bank will not foreclose on your house, and you will get some time. Once you file a bankruptcy, the law of automatic stay will immediately apply, which means you won’t have to empty your house until the court proceedings are completed.
During the time proceedings are going on, you can start looking for alternate places where you can shift in and decide how you will handle your expenses. However, keep in mind that filing for bankruptcy can be tricky, which is why you should consult a financial adviser before making a final decision. You wouldn’t want to end up in more problems. Would you?
2. Make changes to the loan
Another recommended option for stopping the foreclosure is that you immediately work on making changes to the loan. If you have a problem with the current amount of the monthly payments, sit and chat with the lender about the circumstances. You can bring different changes to the loan, such as reducing the amount of fees for each month or requesting the lender to make changes to the interest rate. It all depends on how good your terms are with the lender and accommodating they are willing to be. If you keep paying your modified payments every month as agreed, the foreclosure will be permanently stopped.
3. Go for a lawsuit
Do you feel that filing bankruptcy or making changes to the loan isn’t a suitable option for you? No worries, as you can also opt for a lawsuit. Filing a lawsuit will be a challenge against the bank for the foreclosure, and it will also buy you time until you figure out some crucial things.
However, to file a lawsuit, you should have solid evidence against the bank. E.g., the bank didn’t act according to the laws or violated state law. Make sure that your accusation is concrete because if it isn’t, then lawsuits can be costly, and in such a state, it wouldn’t be advisable to keep on paying attorney fees and bank court costs.
Make sure you talk to your lawyer before making any of the decisions mentioned above, as your lawyer will be well aware of your situation. Think with a calm and focused mind and do not make any hasty decisions.
4. Sell to Blue Badger Home Buyers
If you are in a tough situation and are looking for another option, submit your information to our home buyers for a fast, no-obligation, offer for your property. We work with sellers throughout Wisconsin in any situation to help them sell their property quickly.