In an ideal situation, you could always pay your mortgage on time, so you never have to worry about foreclosure.

Of course, we don’t live in a perfect world. Things happen. Some people find themselves in foreclosure or bankruptcy situations that are unexpected.

One of the first things to remember if you are in danger of foreclosure or bankruptcy is that you have options to get out. A bank doesn’t want to have to repossess your home. They want to resolve the issue as much as you do.

If your home is in danger of foreclosure, it’s time to start taking action. Follow these steps to see what you can do to avoid having to deal with an extreme outcome.

Get In Touch With Your Lender

If you’re facing foreclosure, the first step is getting in touch with your mortgage lender. We get it. It’s scary to face debt problems head-on. However, it would help if you warned yourself that the bank wants to work with you to help.

Remember, the bank wants to get paid. They would much prefer not to have to deal with the hassle of repossessing a home.

If you find that you’re falling behind on payments, your lender might be able to support you in finding a payment plan that suits you.

Alternative To Foreclosure

To prevent foreclosure, which can wreak havoc on your credit, you need to look into alternatives with your lender.

From short sales to government programs, there are many routes you can take to avoid foreclosure. Here are a few choices you might reconsider:

• Loan Modification– You may be able to apply for a loan modification through your lender to refinance and make payments more manageable.
• Principal Reduction Alternative – You may qualify for this federal program if your home is worth less than when you purchased it.
• Short Sale – A lender will sometimes allow homeowners to sell their homes for less than they owe on the mortgage. Hence This can be highly effective in many cases.

Bankruptcy

Of course, one of the most powerful ways to stop foreclosure is by filing for bankruptcy. When a homeowner files for a bankruptcy petition, they free themselves of debt collection, including their mortgage lenders. The repossession or foreclosure will freeze once a lender knows you’ve filed for bankruptcy.

However, if you don’t want to damage your credit for years to come and have to deal with the same debts later down the road, there are other alternatives. Until a lender officially closes a repossession case, you still have options.

We suggest getting in contact with us here at Tru Buyers. We’ve helped hundreds of clients going through foreclosure. We purchase homes in “as-is” condition, some of which are in foreclosure at the time. You may be at a point where holding onto your home isn’t a financially sound decision.

If that’s the case, consider selling it to us to get the cash you need so that you can take your next steps in life. We look forward to hearing from you.