Paths to Foreclosure Avoidance

 One of the toughest decisions homeowners face when trying to avoid foreclosure is which path is right for them. There are many methods a homeowner can use to avoid foreclosure, but most people do not know which method they should use based on their particular situation and the amount of time they have until the bank completes the foreclosure process. Because this process is so complex, it is important for homeowners to be realistic and honest about how much time they have to work out a solution.

Although it may seem like the easiest way to avoid losing your home would be to simply contact your lender and arrange something, lenders are usually incredibly busy and their mitigation departments tend to be slow. Often times, homeowners call their contact at the bank a dozen times, leaving voicemails at every opportunity, and simply never receive a call back. After several weeks of this frustration, an additional payment will have been missed and the likelihood of qualifying for a payment plan will drop even further.

If you are attempting a foreclosure refinance, you will face a very similar situation. The mortgage broker will need updated payoff information from the attorneys, this may take ten business days, and even then the information is only good for a few days, because it changes again. This makes closing a mortgage extremely unlikely, because by the time any information is received, it is no longer relevant.

Bankruptcy to stop foreclosure is another commonly used method, but new laws and state regulations are making it harder and more time consuming. Regardless, the paperwork will be held up in court for several months, while payment plans are arranged and creditors are informed. The whole process will end up saving no time and causing unnecessary complications.

Although some real estate agents will promise to work hard and sell the foreclosed for a fair price, the current market is declining. A fair price for the homeowner may mean that they can sell and stop foreclosure entirely, while a fair price for a potential buyer means getting a great deal on a home. The real estate agent may have little choice but to present inadequate offers and leave the homeowner with no hope of selling the home before the sheriff sale.

The actual timelines for all these processes are hard incredibly hard to predict, especially for homeowners. This is why it is important that you seek help from professionals so they can advocate for you and help you deal with lenders and real estate agents in a timely manner and help you avoid foreclosure.