Saving Your Home: 3 Effective Ways to Avoid a Foreclosure

Legal Adviser May 17, 2016
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Foreclosure Defense Lawyer in SchaumburgThe specter of a foreclosure is probably the worst news any Chicagoan could get. After years of repaying your mortgage, it’s never easy to take in the prospect of losing your home. While it may not be your intention to miss your payments, receiving the memo might cause you to think that a foreclosure is inevitable.

Fortunately, it’s not. You actually have plenty of ways to avoid losing possession of your home and getting a huge red mark on your credit report in the years to come. Here are some things you could do:

Talk Things Over

The moment you realize that a foreclosure is on the horizon, reach out to your lender right away. You shouldn’t necessarily have to wait for the Notice of Default; rather, take the initiative to work things out and come up with an agreement resulting in a win-win situation.

Believe it or not, lenders would also want to avoid a foreclosure as much as possible. If your lender gets your property sold in an auction, there’s a great chance they would absorb great losses. This is why you shouldn’t hesitate to offer a resolution to your missed payments. If you could make a good case for yourself, your lender would be happy to help get back on track.

File for Bankruptcy

If you try to talk and fail, filing for a bankruptcy could help you save your home. Chang Legal LLC, an experienced foreclosure defense lawyer in Schaumburg, would tell you that a Chapter 7 bankruptcy could halt the repossession dead in its tracks. However, this legal process might only stop the bleeding for a number of months, as the lender could eventually get the court’s permission to proceed with foreclosure.

Consider Lease-Option or Assumption

If you can’t pay your mortgage yourself, your lender might agree to bring in someone to lift the responsibility off your shoulders.

Even if most mortgage these days are not assumable, your lender might say yes if the new buyer has strong credentials. On the other hand, the lease-option would make the new buyer act as your tenant to help you bring your home loan current.

Many companies would offer assistance to foreclosure dilemma, but beware of scams. To ensure you wouldn’t be tricked, seek advice from an experienced attorney.

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